Virgin Australia taps on partner carriers for A$90m loan facility

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Virgin Australia has secured an A$90 million ($80.5 million) loan facility from Air New Zealand, Etihad Airways and Singapore Airlines to provide it with further liquidity.

"The unsecured one-year term loan facility will have pro-rata contributions from each of the three shareholders "based on their current relevant interest," Virgin said in a statement to the Australian Securities Exchange.

SIA has a 20% stake in the Australian carrier, while Etihad holds 10.5% and Air New Zealand 23%.

Virgin adds that the facility is based on "arms-length commercial terms" and that it will be used to supplement the airline's liquidity position. The facility is expected to be in place within a month, once separate agreements with the three airlines are completed and executed.

"Our intention is not to draw it down, but it is a good thing to have and it is an enormous support from our shareholders," says chief executive John Borghetti.

Virgin announced the loan facility on the same day as it revealed a net loss of A$98.1 million for the 2013 financial year.

The airline's cash and cash equivalents at the end of that financial year stood at A$581 million, down from A$803 million the year prior.