The Australian government has approved Qatar Airways Group’s acquisition of a 25% stake in Virgin Australia, paving the way for a deeper partnership between the two airlines and a major expansion of long-haul services. Bain Capital, which took control of Virgin Australia after its 2020 restructuring, will remain the majority shareholder alongside Virgin Group and the Queensland Investment Corporation.
Regulatory Approval and Competition Impact
The deal, which received clearance from the Foreign Investment Review Board, is expected to boost competition in the Australian aviation market and provide travelers with more options to Europe, the Middle East, and Africa. The Australian Competition and Consumer Commission (ACCC) had previously signaled support for the alliance, with final regulatory approvals anticipated by mid-2025.
Virgin Australia plans to reintroduce long-haul flights from Sydney, Brisbane, and Perth to Doha in June, pending approval from the International Air Services Commission. Melbourne flights are scheduled to launch in December. The airline will operate these routes using Qatar Airways aircraft under a wet-lease arrangement.
The partnership is projected to generate an estimated AU$3 billion in economic value over the next five years, primarily through tourism and increased connectivity. Strong interest has also been reported among Virgin Australia pilots and cabin crew for secondment opportunities with Qatar Airways.
“This latest development is a significant step towards solidifying the strong and enduring relationship between Qatar Airways Group and Virgin Australia,” said Qatar Airways Group CEO Engr. Badr Mohammed Al-Meer in a news release. “It is also a huge boost to our shared ambition to create even greater choice and value for all Australian passengers.”
