Qatar Airways is set to acquire a 25% stake in Virgin Australia from private equity firm Bain Capital. The two airlines have already shared a codeshare agreement since 2022, but Qatar Airways’ investment (for an undisclosed amount) aims to strengthen its stake in the financially troubled Australian carrier. This move reflects a broader trend of Middle Eastern airlines expanding their global reach through strategic partnerships. In a similar move, Qatar Airways announced at the end of August that it would take a 25% stake in South African airline, Airlink.
The investment not only demonstrates Qatar Airways’ confidence in Virgin Australia but also intensifies competition with Qantas Airways, which has long dominated domestic routes. Virgin Australia issued a statement saying the investment would provide access to the scale and expertise of a world-leading global airline, which is critical to ensuring domestic competition as Virgin Australia navigates the challenges of the aviation industry.
Qatar Airways Group CEO Badr Mohammed Al-Meer commented on the partnership, stating: “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.”
The investment is expected to unlock new areas of collaboration, allowing Virgin Australia to launch flights from Brisbane, Melbourne, Perth, and Sydney to Doha, where passengers can connect to Qatar Airways’ extensive global network. The new long-haul routes between Australia and Doha are projected to bring an economic benefit of AUD $3 billion to the local economy through increased tourism over the next five years.
Virgin Australia CEO Jayne Hrdlicka expressed enthusiasm about the partnership, stating: “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, leading to more choice and better value airfares for consumers, as well as additional Australian aviation jobs.”
Hrdlicka also emphasized the potential for collaboration on sustainability initiatives and the development of the Western Sydney aviation ecosystem, including opportunities for employment and training.
