Air New Zealand said it is mulling the sale of its stake in Virgin Australia.
The Kiwi carrier is the largest single shareholder with a 25% stake worth about A$343 million.
"Air New Zealand advises that it is exploring options with respect to its shareholding in Virgin Australia including a possible sale of all, or part of its shareholding," the airline said in a statement.
At the same time Air NZ CEO Christopher Luxon stepped down from Virgin’s board of directors but said the carriers will continue working together.
"We look forward to continuing our partnership on the Tasman alliance," he said.
Last week Virgin agreed a A$425 million loan from four of its main shareholders Singapore Airlines, Etihad Airways, the Virgin Group and Air NZ.
