Australian transport group Patrick Corp said on Friday it had secured a controlling stake in takeover target Virgin Blue.

Patrick, which launched a AUD$1.1 billion (USD$866 million) offer for the shares it did not already own in January, said its shareholding had increased to 50.26 percent, up from 45.4 percent when it announced the bid.

The offer was automatically extended until April 1 under takeover rules applying once a bidding company moves above 50 percent of the takeover target.

Patrick has previously said it would be happy to retain Virgin Blue Chief Executive Brett Godfrey, while promising a wider review once it gained control.

"We are pleased to have moved beyond 50 percent. The offer remains open for a further two weeks and once that bid period has expired we will conduct a review in accordance with our bidder's statement," a spokesman said.

Patrick's wholly owned subsidiary, Plzen, made its offer nine days after Virgin Blue warned its annual profit would fall by as much as 15 percent due to sluggish demand and a price war with Jetstar, the no-frills offshoot of Qantas Airways.

Richard Branson's Virgin Group holds a stake in Virgin Blue of about 25 percent.

Patrick already has three representatives on the Virgin Blue board of eight directors and its chief executive Chris Corrigan was also chairman of Virgin Blue. Corrigan stepped down as chairman for the duration of the bid.