Qatar Airways takes 25% stake in Virgin Australia

QATAR AIRBUS A380-861 A7-API (MSN 235)

Qatar Airways is set to acquire a significant 25% stake in Virgin Australia from Bain Capital, marking a substantial shift in the nation's aviation sector. The transaction is pending approval from the Foreign Investment Review Board and the Australian Competition and Consumer Commission. Should the approvals be granted, Virgin Australia plans to initiate flights from Sydney, Melbourne, Brisbane, and Perth to Qatar's Doha hub by mid-2025. This expansion will provide access to over 100 destinations throughout Europe, the Middle East, and Africa.

Virgin is set to enter a "wet-lease" agreement with an airline to utilize their long-range jets, with Qatar providing the crew for these flights. Currently, Virgin's fleet comprises only Boeing 737s. "The minority stake is a pivotal investment in anticipation of Virgin Australia's return to public ownership, offering Australians a chance to participate in the airline's future," stated the airlines in a joint announcement.

On Tuesday, the 1st of October, Virgin CEO Jayne Hrdlicka appeared on an Australian national morning TV show called Sunrise to discuss the development.

"It highlights why this partnership is so beneficial for Australia and particularly advantageous for Virgin Australia," she commented.

"This partnership presents us with the chance to significantly strengthen our position in the domestic market and grants us access to the world's premier international airline."

The deal opens more opportunities for Australians to travel through Doha to Europe and Africa and is a testament to the hard work of our 8000 employees over the past four years, culminating in attracting the world's top airline as a 25 percent shareholder. Hrdlicka highlighted that the agreement would offer better value for Australians, providing more affordable travel options and a wider selection of choices. The addition of these services will make another 107 destinations accessible to Australians with just one stopover. The value this brings is significant and multifaceted. 

The competitive landscape of Australia's aviation sector has been under scrutiny following the downfall of Rex Airlines, which attempted to rival the dominance of Qantas and Virgin on the east coast's capital routes. This announcement follows a year after the Albanese government faced criticism for rejecting Qatar's request to double its 28 weekly flights. The decision was questioned when it was disclosed that Qantas had lobbied against the increase before announcing a record $2.5 billion profit.