The existing partnership between Virgin Australia and Qatar Airways is set to be strengthened further, as Qatar Airways Group intends to acquire minority 25% equity stake in Virgin Australia from private investment firm Bain Capital, subject to FIRB approval.
Qatar Airways Group's equity investment in Virgin Australia is set to increase cooperation between the two airlines.
Pending authorisation by the Australian Competition and Consumer Commission (ACCC), this collaboration will enable Virgin Australia to introduce new routes from Brisbane, Melbourne, Perth, and Sydney to Doha with leased aircraft by mid-2025. These routes will integrate into Qatar Airways' already extensive global network.
The proposed wet lease services will allow Virgin Australia to assess the longer-term viability of wide-body aircraft flying while also providing its passengers with greater local competition for their long-haul travel needs in the near-term.
“This partnership brings the missing piece to Virgin Australia’s longer-term strategy and is a huge vote of confidence in Australian aviation,” said Jayne Hrdlicka, Virgin Australia Group CEO. “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.”
Hrdlicka also noted that the airline is estimated to generate an economic benefit of AUD$3 billion ($2.06 billion) to the Australian economy through incremental visitor flows over the next five years. Additional benefits will come from increased freight capacity, supporting Australia’s high-value exports to markets such as the Middle East and Europe.
Commenting further on the acquisition stake was Badr Mohammed Al-Meer, Qatar Airways Group CEO, he added: “We are really pleased to be announcing our proposed strategic investment in Virgin Australia today. 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.”
The deepened partnership will aim to underpin significant jobs and economic growth - not just in Virgin Australia - but across both the broader aviation and tourism sectors in Australia.