Qatar Airways’ buy-in to Australia’s second largest carrier will have a positive impact on Australia’s aviation landscape by enabling Virgin’s return to long-haul international flying.
“I have now approved the Qatar 25 per cent stake in Virgin Australia,” said Australia’s federal treasurer Jim Chalmers at a press conference in the New South Wales Hunter Valley this morning.
“This is consistent with and aligns with the strong advice provided to me by the Foreign Investment Review Board.
“I’ve taken this decision in the national economic interest. It means more options and more flights for Australians. It means more competition in aviation and it means more customers for our tourism businesses here and right around Australia.
“This decision…will strengthen the aviation sector by making it more competitive.
“It will give Australians more options, more flights, downward pressure on prices in a more competitive aviation sector.”
Cheaper airfares and more flight options will be a boon for event planners organising offshore events and for organisers of global conferences in Australia looking to attract international delegates.
According to the Australian Competition and Consumer Commission, which has indicated it is likely to support Virgin’s re-entry into the long-haul aviation market, Virgin Australia will use both Qatar Airways’ aircraft and its crew to service 28 flights per week between Australia and Qatar, starting June 2025.
Virgin is proposing daily flights from Sydney, Brisbane and Perth to Doha from June 2025 and daily flights from Melbourne to Doha from December this year.
With the June flights already on sale, the services are currently subject to the approvals process with the Air Services Commission. No other Australian airline currently fly the route and Virgin Australia’s application to the commission has received several letters of support including from Canberra and Brisbane Airports, the Australian Airports Association and Tourism and Events Queensland.
“Today we welcome a new era for Virgin Australia,” said Virgin Australia’s CEO Jayne Hrdlicka, of the Government’s backing of Qatar Airways’ Virgin buy-in.
“Qatar Airways’ investment is a huge vote of confidence in our business and Australian aviation more broadly. It sets us up for long-term success and adds fuel to our bold transformation agenda.
“This is a major win for Australian consumers, who are already benefiting from more choice and greater value when travelling to Europe, the Middle East and Africa since our flights went on sale in December.
“Domestically, we are competing well and performing stronger than at any other point in our 24 year history.
“Being backed by one of the world’s largest airlines now gives us the scale and access to industry expertise which will support continued growth in line with the market domestically, improve our ability to compete for key segments of the market and add momentum to our margin ambitions.”
