Qatar Airways’ plan to buy into the Australian market will be subject to the approval of the Foreign Investment Review Board and any other necessary approvals.
If successful, Qatar Airways will purchase the stake from Bain Capital, the American private equity firm that purchased Virgin Australia when it went into administration during the pandemic.
The acquisition, should it be approved, would see Virgin Australia launch flights to Qatar’s capital Doha from Brisbane, Melbourne Perth and Sydney, which will increase connections from Australia to 100 international destinations.
These new flights would begin mid next year and contribute around $3 billion to Australia’s economy over five years.
“This partnership brings the missing piece to Virgin Australia’s longer-term strategy and is a huge vote of confidence in Australian aviation,” said Virgin Australia’s CEO, Jayne Hrdlicka.
“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.
“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.”
Qatar Airways has been voted the world’s best airline in the World Airline Skytrax Awards eight times, including in 2024.
However, with the Australian Government knocking back an attempt by Qatar to majorly increase its flights to Australia in 2023, and the transport minister Catherine King saying that it “was not in the national interest”, it remains to be seen what the response to Qatar Airways’ attempt to buy into Virgin will be.
Hrdlicka acknowledged regulatory approval was needed to make the investment a reality.
“We do not take this for granted and have made submissions outlining the benefits of the transaction for Australian aviation, Australian travellers and the Australian economy.”
She also said an investment by Qatar would likely support sustainable aviation fuel ambitions in Australia and would mean that Virgin could look at opportunities at the new Western Sydney International Airport, scheduled to open in 2026.
Meanwhile, Qatar Airways Group CEO, Badr Mohammed Al-Meer, said the airline was pleased to be announcing a “proposed strategic investment” in Virgin Australia.
“The alignment of our two airlines is significant, the relationships are deep, and we 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 our collective ambition to deliver the best possible service and value to Australian passengers.
“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.”
