Virgin Australia will go ahead with its $350 million capital raising after the move received the green light from the Australian Takeovers Panel.
The Takeovers Panel rejected an argument by the Australian Shareholders Association that the capital raising had been structured in a way to increase the control of Air New Zealand, Etihad and Singapore Airlines at the expense of other shareholders.
Virgin said the decision would allow the capital raising to continue as planned on its original terms and timetable.
Qantas has been lobbying the Federal Government to stop the capital raising, arguing that Virgin is using the funding to continue a fare war.
Virgin argues that the fare war has resulted because Qantas has dumped capacity to defend its 65% markets share.
