Qatar Airways to acquire stake in Virgin Australia

October 1, 2024

Qatar Airways is to take a 25% stake in Virgin Australia from private equity firm Bain Capital.
The two airlines already have had a codeshare agreement, which started in 2022, but Qatar Airways’ bid (for an undisclosed sum) to strengthen its stake in the troubled Australian carrier is part of a broader trend of Middle Eastern carriers expanding their global influence through strategic partnerships. At the end of August Qatar also announced it was taking a 25% stake in South African carrier, Airlink.
The Middle Eastern carrier’s move not only represents a vote of confidence in Virgin Australia, it signals tougher competition for Qantas Airways, which has dominated domestic routes. A statement from the Australian carrier said the investment will provide access to the critical scale and expertise of a world leading global airline with domestic competition dependent on Virgin Australia thriving through the inevitable ups and downs of aviation.
Commenting on the alignment of the two airlines, Qatar Airways Group CEO Badr Mohammed Al-Meer, said: “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.”
Unlocking new areas of cooperation, the investment is expected to enable Virgin Australia to launch flights from Brisbane, Melbourne, Perth and Sydney to Doha, connecting seamlessly into Qatar’s global network. The new long-haul services between Australia and Doha are estimated to generate an economic benefit of UAD$3 billion to the local economy through incremental visitor flows over the next five years.
Commenting on the agreement, 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. 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.”
She also noted her excitement at the potential to expand the two airlines’ efforts to expand efforts in areas such as sustainability and the development of the western Sydney aviation ecosystem, including employment and training opportunities.
The minority stake also serves as a cornerstone investment ahead of an anticipated return of Virgin Australia into public ownership and the opportunity that would provide for Australians to share in Virgin Australia’s future.”