Etihad Airways confirmed Monday that its equity stake in Virgin Australia Holdings has now reached 10%, representing 221 million shares which have been bought on the open market over recent months.

Etihad Airways received Foreign Investment Review Board (FIRB) approval to increase its holding from 5% to 10% six weeks ago, said a statement.

Etihad Airways President and Chief Executive Officer James Hogan said: “We are very pleased to have reached this threshold. We support the management strategy of Virgin Australia and will continue to work closely with them on ways to improve our business.”

Hogan again reiterated that Etihad Airways wasn’t interested in becoming a majority shareholder or taking control of Virgin Australia.

“Our small equity stake reflects the strong working relationship of both airlines and again demonstrates our enduring commitment to the Australian market,” he said.

Etihad Airways and Virgin Australia have developed a highly successful, multi-tiered partnership that includes code-sharing on flights, joint marketing initiatives and reciprocal earn-and-burn on their respective frequent flier programs.

Hogan said he was confident the equity stake would lead to more revenue generating opportunities.

Based on Virgin Australia's current market value, the stake is worth about $100 million.

Virgin Australia is 26% owned by Richard Branson and 20% by Air New Zealand.

Etihad began flying to Australia in 2007 and along with Virgin Australia they operate 24 flights a week between Abu Dhabi and Australia.

Etihad has already bought stakes in three other carriers: Aer Lingus, Air Seychelles and Air Berlin.