Qatar Airways to acquire 25% minority stake in Virgin Australia

Qatar Airways confirmed (01-Oct-2024) its intention to acquire a 25% minority stake in Virgin Australia from Bain Capital. Details include:

• Subject to authorisation from the Australian Competition and Consumer Commission, the cooperation will enable Virgin Australia to launch flights from Brisbane, Melbourne, Perth and Sydney to Doha, connecting into Qatar Airways' global network;
• The additional flights will open up over 100 new connecting itineraries across Europe, the Middle East and Africa for Australian travellers;
• Proposed wet lease services will commence in mid-2025, enabling Virgin Australia to assess longer term merits and viability of widebody aircraft;
• The arrangement will provide access to a greater range of international destinations with improved schedules and frequencies, as well as increased earn and redemption opportunities for members of Velocity and Qatar Airways' Privilege Club, and broader access to value fares;
• The carriers plan to place focus on sustainability, including the development of sustainable aviation fuel;
• The partnership will also explore opportunities at Western Sydney International (Nancy-Bird Walton) Airport and its economic ecosystem, including jobs and training opportunities.

Virgin Australia Group CEO Jayne Hrdlicka said the arrangement will "further strengthen Virgin Australia's ability to compete over the long term". Ms Hrdlicka noted an estimated AUD3 billion (USD2.07 billion) economic benefit of new proposed long haul services between Australia and Doha through incremental visitor flows over the next five years. She added: "Additional benefits will flow from increased freight capacity, supporting Australia's high-value exports to markets such as the Middle East and Europe". Qatar Airways Group CEO Mohammed Al-Meer stated: "The investment further demonstrates our strategic alignment with Virgin Australia and our collective ambition to deliver the best possible service and value to Australian passengers". Mr Al-Meer added: "This agreement will also help support Australian jobs, businesses and the wider economy". [more - original PR]