Airline company Virgin Australia Holdings Ltd announced it plans to raise USD350 million for its new equity. This was according to a report published by Business Spectator.

Virgin told Australian Securities Exchange that the capital raising is fully supported by the company's strategic partners and major shareholders. These would include Air New Zealand, Etihad Airways, and Singapore Airlines. The airline also said it will offer five new shares for every 14 that the shareholders already have, the report said.

According to Virgin Australia's chief executive officer John Borghetti, this capital fundraising aimed to increase the airline company's liquidity. It would also pave the way for a better position for improvement, said the report.

Borghetti said: "We have recently executed and continue to explore a number of balance sheet initiatives including the sale and leaseback of our aircraft hangar at Brisbane Airport in June 2013 and the successful pricing of a US$797.3 million Enhanced Equipment Notes offering in October 2013."