Singapore Airlines has agreed to acquire another 9.9 per cent of Virgin Australia in a move that will increase its stake to 19.9 per cent.

The stake will be acquired through the purchase of shares held by the Virgin Group.

Singapore Airlines will purchase 255.5 million shares at 48 Australian cents per share for a total consideration of A$122.6 million.

The purchase is subject to approval from the Foreign Investment Review Board in Australia.

“Our partnership with Virgin Australia has been going from strength to strength, offering a wide range of consumer benefits,” said Singapore Airlines chief executive Goh Choon Phong.

“Increasing our stake in Virgin Australia is another example of Singapore Airlines’ deep commitment to the important Australian market.

“It also demonstrates our support for the ongoing transformation of Virgin Australia, which has created a more competitive aviation market in Australia.”

Singapore Airlines acquired ten per cent of Virgin Australia in late 2012 through an injection of funds in Virgin Australia Holdings.

The two airlines entered into a long-term partnership in 2011, encompassing codesharing, reciprocal frequent-flyer programme benefits and lounge access, coordinated schedules to provide seamless connections, and joint sales, marketing and distribution activities.