Qatar Airways Group has announced plans to buy a 25% minority stake in Virgin Australia from Bain Capital, strengthening the existing partnership between the two airlines.
According to Virgin Australia, the deeper strategic partnership between the two carriers will drive increased competition in Australian aviation.
“This will ensure Australian consumers have access to even better value airfares and greater choice,” the airline said in a statement.
Qatar Airways’ minority stake also serves as a cornerstone investment ahead of an anticipated return of Virgin Australia into public ownership.
Although the 25% stake is still subject to approval from the Foreign Investment Review Board (FIRB) and The Australian Competition and Consumer Commission (ACCC), the enhanced partnership will enable Virgin Australia to launch flights from Brisbane Airport (BNE), Melbourne Airport (MEL), Perth Airport (PER) and Sydney Kingsford Smith Airport (SYD) to Doha Hamad International Airport (DOH), and connect easily to Qatar Airways’ global network.
The extra flights will open up more than 100 new connecting itineraries across Europe, the Middle East and Africa for Australian travelers.
Virgin Australia Group CEO Jayne Hrdlicka said the partnership is a huge vote of confidence in Australian aviation, and will further strengthen Virgin Australia’s ability to compete over the long term.
“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,” Hrdlicka said in a statement.
“This proposed investment is subject to regulatory approval. We do not take this for granted and have made submissions outlining the benefits of the transaction for Australian aviation, Australian travelers and the Australian economy,” Hrdlicka added.
Hrdlicka also said the partnership will enhance both airlines’ efforts towards sustainable aviation.
“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 Sustainable Aviation Fuel (SAF) opportunities in a manner consistent with the Federal Government’s Future Made in Australia agenda,” she said.