Qatar Airways Group has announced its intention to acquire a 25% minority stake in Virgin Australia from Bain Capital. The investment is subject to approval from the Foreign Investment Review Board.
This strategic partnership aims to strengthen competition in Australia’s aviation sector, the airline said, offering consumers more choice and better value. It will also provide Virgin Australia with access to Qatar Airways’ “scale and expertise,” allowing for future growth opportunities.
As part of the agreement, Virgin Australia plans to launch wet-leased flights from Brisbane, Melbourne, Perth, and Sydney to Doha, connecting with Qatar Airways’ network. These new routes will offer Australian travelers access to over 100 additional destinations in Europe, the Middle East, and Africa. The flights are expected to begin in mid-2025.
“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,” said Virgin Australia Group CEO Jayne Hrdlicka in a news release.
According to the release, this expanded partnership will also include increased codeshare arrangements, improved schedules, and connectivity options, along with enhanced loyalty program benefits for members of Velocity and Qatar Airways’ Privilege Club.
Virgin Australia says that the partnership will allow it to “assess the longer-term merits and viability of wide-body aircraft flying.” The carrier parked its entire fleet of Airbus A330 and Boeing 777 aircraft during the COVID-19 pandemic, therefore pausing all long-haul routes.
