Virgin Australia International Holdings Pty Ltd (VAIH) is fully compliant with the Air Navigation Act (ANA) which limits foreign ownership of Australian international airlines to 49 per cent.

The VAIH structure is:

o majority Australian owned and controlled; and

o governed by a majority independent Board of Directors, including an independent Chairman.

Under VAIH’s constitution, at no time can the interests of foreign persons in VAIH exceed the foreign ownership levels prescribed by the ANA. The constitution also guarantees that at all times at least two-thirds of VAIH’s directors are Australian citizens.

VAIH has a robust governance system and processes in place, with the Board meeting on a regular basis to review its performance and make decisions about the international business, in the interests of the VAIH shareholders.

VAIH has its own independent Air Operating Certificates (AOCs) and operates all of its aircraft that fly its international routes under these AOCs.

VAIH notes that the structure is comparable to those that have been used by other airlines around the world, including a structure currently used by our major competitor in overseas markets.