Abu Dhabi's flagship carrier Etihad Airways has boosted its stake in Virgin Australia Holdings to about 22.9 per cent by purchasing an additional 1.7 per cent of the airline, said a report.

Etihad lifted the share holding to the maximum approved limit by Australia’s Foreign Investment Review Board (FIRB), reported newspapers the Australian Financial Review and The Australian.

The news comes just days after Etihad’s President and Chief Executive, James Hogan, was appointed a non-executive director to the Virgin Australia board.

Virgin Australia offered a board seat to Etihad after it backed a $300 million capital investment last year, the report said.

Board seats were also offered to its other major airline investors, Singapore Airlines and Air New Zealand. The three airlines control around 70 per cent of the Australian airline, it added.