Singapore Airlines is increasing its stake in Virgin Australia with the acquisition of a further 9.9% of Virgin Australia shares. This will bring its stake in the Australian carrier to 19.9%.

Singapore Airlines will purchase 255.5 million shares for a total consideration of A$122.6 million ($126 million).

The purchase is subject to approval from Australia’s Foreign Investment Review Board (FIRB).

The move comes a day after the Australian Competition and Consumer Commission (ACCC) approved Virgin Australia’s deal to purchase a 60% controlling stake in Tiger Airways Australia from Singapore Airlines’ budget associate, Tiger Airways Holdings Ltd.

Singapore Airlines CEO Goh Choon Phong said: “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 10% of Virgin Australia in October 2012 through an injection of funds in Virgin Australia Holdings. The two airlines began a long-term partnership in 2011 that encompasses codesharing; reciprocal frequent-flyer program benefits and lounge access; coordinated schedules to provide seamless connections; and joint sales, marketing and distribution activities.