Etihad Airways’ chief executive James Hogan will take up a seat on the board of Virgin Australia following its backing of the airline’s A$350 million ($307 million) capital raising last year.
Hogan told The Australian Financial Review that he intends to take the position once Virgin completes internal governance measures designed to protect against a conflict of interest.
Virgin Australia confirms that in recent months that it has offered one board seat each to Etihad, Air New Zealand and Singapore Airlines, in line with its announcement in November that it intended to offer seats to the three carriers.
Air NZ and SIA have not indicated to Virgin who they intend to nominate on the board, however it is expected that they will also nominate their chief executives for the seats.
All board nominations will still be subject to approval from the airline’s shareholders, Virgin confirms.
Air NZ is the largest shareholder in Virgin with a 24.5% stake, followed by Singapore Airlines and Etihad, which each own 19.9% stakes. Virgin Group, which is currently the only shareholder to have a board representative, holds a 10% stake.