Air New Zealand recently purchased shares of Australian airline Virgin Blue.
The carrier is denying any interest in a full takeover, however.
The purchase means that Air New Zealand now holds 14.99 percent interest in the company.
Chief Executive Robert Frye said the agreement is part of Air New Zealand’s continuing strategy to cultivate new business in Australia.
“The investment provides us with an interest in the number two airline in Australia and, through this, access to the opportunities in the growing Australian domestic market,” said Fyfe.
The deal was worth an estimated $145 million.