Major announcement for Virgin Australia
Virgin Australia could soon be part-owned by Qatar Airways, opening a major Australia to the Middle East route to the roster by mind-2025.
Virgin Australia could soon be part-owned by Qatar Airways, opening a major Australia to the Middle East route to the roster by mind-2025.
Qatar Airways intends to take a 25 per cent stake in Virgin Australia, which will be subject to approval from the Foreign Investment Review Board.
The deal would allow flights from Australias four largest cities to Doha, under a plane and crew lease agreement.
In a statement, Virgin say the proposed minority ownership stake would create more choice and better value for Australians.
Domestic competition in Australia is dependent on Virgin Australia thriving through the inevitable ups and downs of aviation.
The deal would be done by way of the Gulf airline acquiring 25 per cent of Virgin owner, Bain Capitals stake.
This partnership brings the missing piece to Virgin Australias longer-term strategy and is a huge vote of confidence in Australian aviation, Virgin Australia chief executive Jayne Hrdlicka said.
Virgin Australia has not flown flights longer than eight hours since it was rescued from administration by Bain Capital in 2020. Picture: NewsWire / Damian Shaw
Qatar Airways and Virgin Australia have been aligned since 2022. Picture: Supplied
The two airlines have codeshared flights since 2022. The proposed deal would allow Virgin to resume eight-hour-plus flights again, and has positive implications for the development sustainable aviation fuel, given Virgin Australias commitment to Australian jet fuel decarbonisation efforts, the statement reads.
We believe competition in aviation is a good thing and it helps raise the bar, ultimately benefiting customers, Qatar Airways chief executive Badr Mohammed Al-Meer said.
This agreement will also help support Australian jobs, businesses and the wider economy.
The Virgin Australia boss says government Foreign Investment Review Board approval was not being taken for granted, but the deal-makers had filed submissions outlining the benefits for Australian aviation, Australian travellers and the economy.
The parties involved claim the deal would add $3bn to the Australian economy through incremental visitor flows during the next five years.
Virgin Group and the Queensland Investment Corporation will retain shareholdings in Virgin Australia.
Importantly, it will further strengthen Virgin Australias 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, Ms Hrdlicka said.
