Qatar Airways Group has announced its intention to acquire a 25 per cent minority stake in Virgin Australia, subject to regulatory approval.
The proposed investment aims to strengthen the existing partnership between the two airlines and boost competition in the Australian aviation market.
Virgin Australia CEO Jayne Hrdlicka said: “This partnership brings the missing piece to Virgin Australia’s longer-term strategy and is a huge vote of confidence in Australian aviation.”
She added: “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.”
Qatar Airways Group CEO Badr Mohammed Al-Meer said 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.”
The deal is expected to provide Virgin Australia with access to Qatar Airways’ global network and expertise.
As part of the expanded partnership, Virgin Australia plans to launch flights from Brisbane, Melbourne, Perth and Sydney to Doha by mid-2025, subject to regulatory approval.
The airlines also aim to increase codeshare arrangements and improve connectivity options for travellers.
Members of Virgin Australia’s Velocity program and Qatar Airways’ Privilege Club will have increased opportunities to earn and redeem points across both networks.
Bain Capital, which currently owns Virgin Australia, will retain a majority stake in the airline.
Bain Capital Partner Mike Murphy said: “We are pleased to welcome Qatar Airways Group as a partner at this stage to build on Virgin Australia’s strong foundation.”
The proposed investment is still subject to approval from Australia’s Foreign Investment Review Board and other regulators.
Virgin Australia and Qatar Airways claim the partnership could generate an economic benefit of approximately A$3 billion to the Australian economy through increased visitor flows over the next five years.
The airlines also plan to explore cooperation on sustainability initiatives, including the development of sustainable aviation fuel.
