Etihad Airways on Wednesday announced its equity stake in Virgin Australia increased to nearly five per cent. The Abu Dhabi-based airline plans to raise its stake in future to 10 per cent in Australia’s second biggest airline, according to Etihad Airways president and chief executive James Hogan. “Etihad Airways’ equity stake in Virgin Australia Holdings has now reached 4.99 per cent. The company remains interested in building a larger stake over time but will only do so after receiving the necessary regulatory approvals,” the national airline of the UAE said in a latest statement. An aviation analyst said Etihad has achieved nearly fifty per cent of its target of 10 per cent stake in Virgin Australia, so it’s not a surprise as the Abu Dhabi-based airline will continue to increase it’s stake. “Etihad has said that it wants to raise it shareholding in Virgin Australia to almost 10 per cent so it’s not a surprise to see it raises it’s stake so quickly and we can expect more news as they get closer to that target,” Saj Ahmad, chief analyst at London-based StrategicAero Research, told Khaleej Times. The Abu Dhabi carrier believes that the equity investment in Virgin Australia’s domestic operations significantly strengthens the 10-year strategic partnership signed by the both the airline in August 2010 and will enrich the commercial benefits which the alliance already provides for both airlines as well as increasing the benefits to Australian consumers and visitors to Australia. “It’s clear Etihad wants to strengthen its ten year deal with Virgin and there’s every chance a longer deal is already being looked at with a deeper focus on code-sharing,” Ahmad added. Initially, on Tuesday, Etihad Airways said it paid $35.6 million, or  Dh130.7 million, through market purchases over the past few weeks for the 3.96 per cent holding in Virgin. Virgin Australia serves 45 destinations in Australia and New Zealand while Etihad flies to Australian cities of Sydney, Melbourne and Brisbane. Together, Etihad Airways and V Australia operate 24 flights a week between Abu Dhabi and Australia and passengers have access to a combined network of more than 150 destinations. Last month Etihad Airways leased a Virgin Australia Boeing 777-300ER for use on its route between Abu Dhabi and Kuala Lumpur. The Abu Dhabi carrier has been on a global acquisition since December last year as it plans to expand it’s network globally. Last month, Etihad Airways announced a three per cent stake in Ireland’s Aer Lingus, signalling its intent to gain more access to European routes. It also owns nearly 30 per cent of airberlin, Europe’s sixth largest airline, and 40 per cent of Air Seychelles. From its hub at Abu Dhabi International Airport, Etihad Airways serves 87 passenger and cargo destinations in the Middle East, Africa, Europe, Asia, Australia and North America, with a fleet of 66 Airbus and Boeing aircraft, and 100 aircraft on order, including 10 Airbus A380s, the world’s largest passenger aircraft. Separately, Etihad Airways has signed a contract with Airbus to equip 17 of its future A320s on order with Airbus’ fuel saving Sharklets. The new wingtip devices measure 2.5 metres tall, replace the aircraft’s current wingtip fence and will reduce fuel burn particularly over longer sectors. Deliveries of the Sharklet-equipped A320s to Etihad Airways will begin in the third quarter of 2013. “In today’s climate, our airline is fully focused on maximising the environmental efficiency of the entire fleet. By growing our fleet with the modern, fuel efficient Sharklet-equipped A320, we’ll be able to reduce fuel-burn which is central to our goal of growing profitability in the years ahead,” Hogan said.