On Friday, Air New Zealand denied that it has purchased any shares in Virgin Blue.

“Any such purchase would require FIRB approval in accordance with the Australian Government Policy on foreign investment due to the substantial ownership of Air New Zealand by the New Zealand Government,” Air New Zealand said in a statement.

The airline said it is aware that alliances between airlines, including the one planned with Virgin Blue, frequently include an equity aspect, but the proposed alliance does not do so.

In May, Air NZ and Virgin Blue Airlines Group announced their intention to seek regulatory approval to create an alliance on the trans-Tasman. The proposed alliance intends to strengthen the airlines’ competitive offering and to collaborate on future route and product planning, code sharing and frequent flyer program benefits.

Co-founder and Chief Executive of the Virgin Blue Airlines Group Brett Godfrey said the alliance would stimulate a new wave of competition in Australasian aviation.

The necessary regulatory approvals for the trans-Tasman alliance are still in process and Air New Zealand has had no indication of the outcome of this decision, it said. A final decision on the alliance is not expected until the end of the year.

“As a listed company on ASX and NZX, Air New Zealand is conscious of its market disclosure obligations and in the event of any such investment would advise the market in accordance with those obligations. Air New Zealand will make no further comment in regard to this speculation,” the airline said.

Air New Zealand’s shares closed at 85 cents Friday.