Qatar Airways has announced its acquisition of a 25% stake in Virgin Australia.
The acquisition is subject to regulatory approval and will be purchased from the investment fund Bain Capital, which had acquired Virgin Australia in June 2020 following its insolvency. The Virgin Group and the Queensland Investment Corporation will continue to hold shares.
Subject to regulatory approval, Virgin Australia plans to begin wet lease operations on routes from Brisbane, Melbourne, Perth, and Sydney to Doha by mid-2025, allowing for seamless integration into Qatar Airways’ network. This will also enable mutual mileage accrual and exchange.
Jane Hrdlicka, CEO of Virgin Australia, emphasized that this partnership will “further strengthen Virgin Australia’s long-term competitiveness, inevitably providing consumers with more choices and more affordable fares, as well as creating additional employment within the Australian aviation industry.” The launch of the Doha route is expected to generate an economic impact of approximately AUD 3 billion over the next five years and will also enable exports to the Middle East and Europe.
In Australia, the aviation market has been moving towards a monopole by the Qantas Group, amidst deteriorating relations between Qatar Airways and Qantas Airways.
