Qatar Airways to Acquire 25% Stake in Virgin Australia

Further strengthening its existing partnership with Qatar Airways, Australia’s No 2 airline Virgin Australia on Tuesday said that Qatar Airways Group is set to acquire 25% equity stake in Virgin Australia from Bain Capital, subject to approval by Australia’s Foreign Investment Review Board (FIRB).

A deeper strategic relationship between the two airlines will drive increased competition in Australian aviation ensuring Australian consumers have access to even better value airfares and greater choice.

Domestic competition in Australia is dependent on Virgin Australia thriving through the inevitable ups and downs of aviation and Qatar Airways Group’s strategic investment will provide access to the critical scale and expertise of a world leading global airline.

The minority stake also serves as a cornerstone investment ahead of an anticipated return of Virgin Australia into public ownership and the opportunity that would provide for Australians to share in Virgin Australia’s future.

Subject to Australian Competition and Consumer Commission (ACCC) authorisation, this cooperation will enable Virgin Australia to launch flights from Brisbane, Melbourne, Perth and Sydney to Doha, connecting seamlessly into Qatar Airways’ global network.

These extra flights will open up more than 100 new connecting itineraries across Europe, the Middle East and Africa for Australian travellers. The proposed wet lease services will begin in mid-2025, allowing Virgin Australia to assess the longer-term merits and viability of wide-body aircraft flying while providing Australians with greater local competition for their long-haul travel needs in the near-term.

This partnership also has the potential to underpin significant jobs and economic growth, not just in Virgin Australia but across both the broader aviation and tourism sectors in Australia.

Strengthens Virgin Australia

Virgin Australia Group CEO Jayne Hrdlicka said that this partnership brings the missing piece to Virgin Australia’s longer-term strategy and is a huge vote of confidence in Australian aviation.

“Importantly, it will further strengthen Virgin Australia’s ability to compete over the long term, which will inevitably translate into more choice and even better value airfares for consumers as well as additional Australian aviation jobs,” Hrdlicka said.

She continued: “Qatar Airways has been a valued codeshare partner of Virgin Australia since 2022. This investment by the world’s best airline will deepen an already strong partnership by bringing critical scale and the best industry expertise to support our long-term competitiveness and growth.

The new proposed long-haul services between Australia and Doha, Hrdlicka said that they expect an economic benefit of more than $2.07 billion to the Australian economy through incremental visitor flows over the next five years.

Additional benefits will flow from increased freight capacity, supporting Australia’s high-value exports to markets such as the Middle East and Europe, she averred.

“Sustainable Aviation Fuel will play a critical role in aviation’s long-term decarbonisation effort. Virgin Australia has been an active participant in the Federal Government’s Jet Zero Council, and we expect our partnership with Qatar Airways to support SAF opportunities in a manner consistent with the Federal Government’s Future Made in Australia agenda,” she added.

Qatar Airways Group CEO Badr Mohammed Al-Meer said that the alignment of the two airlines is significant, the relationships are deep, and they could not be more proud to bring even more great value and choice to all Australians.

The investment further demonstrates our strategic alignment with Virgin Australia and their collective ambition to deliver the best possible service and value to Australian passengers, Al-Meer said.  

“Not only that, we believe competition in aviation is a good thing and it helps raise the bar, ultimately benefiting customers. This agreement will also help support Australian jobs, businesses and the wider economy,” he added.

Qatar Airways owns minority stakes in British Airways owner IAG, Hong Kong’s Cathay Pacific Airways and China Southern Airlines.