Singapore Airlines bolsters Australia position Singapore Airlines has moved to protect its position in the lucrative Australian travel market with the purchase of a 10 per cent stake in Virgin Australia, the country's second-biggest airline. The strengthening of ties between the two airlines comes as rivals Qantas and Emirates Airlines seek regulatory approval for a far-reaching partnership they hope will establish Dubai as the leading hub for passengers between Australia and Europe. These routes are among the most fiercely contested in the world, with Middle Eastern airlines such as Emirates and Etihad Airlines battling a new breed of Chinese carriers and established players like Singapore Airlines. Goh Choon Phong, Singapore Airlines chief executive, said the A$105m (US$109m) deal demonstrated the "importance and strength" of the partnership with Virgin. Last year the two airlines entered into a strategic alliance involving co-operation on scheduling, marketing sales and code-sharing. The placement sees Singapore Airlines join Air New Zealand and Etihad on Virgin Australia's share register. The two airlines, which are also alliance partners, control stakes of 18.5 per cent and 10 per cent of Virgin respectively. Virgin's biggest shareholder is Sir Richard Branson, who owns 26 per cent. The investment by Singapore Airlines was one of three deals announced by Virgin Australia on Tuesday. The airline also launched a A$93m cash and share offer to acquire Skywest, a regional airline focused on Western Australia, and said it would pay A$35m for a 60 per cent stake in the Australian operations of Tiger Airways, the Asian low-cost carrier 33-per cent owned by Singapore Airlines. Shares in Virgin Australia were up 6.5 per cent at A$0.49 on Tuesday morning while Skywest, which is also listed on London's junior Aim market, surged 54 per cent to A$0.40. The deals are the latest moves by chief executive John Borghetti to reposition Virgin as direct competitor to Qantas, Australia's biggest airline. They will help Virgin diversify its earnings and allow it to better compete with QantasLink, Qantas's regional business, and its low-cost arm Jetstar. Mr Borghetti, a former Qantas executive, said the transactions were in line with Virgin's strategy to become the "airline of choice" in all markets. "The acquisition of Tiger Australia and Skywest provides Virgin Australia with a strong presence in the budget, Fly-in Fly-Out and regional markets, enabling us to fast-track our expansions in these areas and become a stronger competitor," Mr Borghetti said. This gives us real scale. We are a formidable airline now," he said. Tiger and Virgin plan to invest A$62.5m in lossmaking Tiger Australia to fund growth and increase its fleet to 35 aircraft by 2018. The Skywest and Tiger transactions are subject to approval by industry regulators and Australia's Foreign Investment Review Board. The Singapore stake sale has already received FIRB approval.