Qatar Airways to Acquire Minority Stake in Virgin Australia
Qatar Airways has finalized an agreement to acquire a minority stake in Virgin Australia, the country’s second-largest airline.
Virgin Australia announced on Tuesday that Qatar Airways will purchase a 25% equity stake from its current owner, Bain Capital, pending approval from the government’s Foreign Investment Review Board.
As part of the deal, Virgin Australia plans to initiate flights from Sydney, Melbourne, Brisbane, and Perth to Doha, according to reports from Xinhua news agency.
Jayne Hrdlicka, the CEO of Virgin Australia, stated that the new long-haul services are expected to provide an economic boost of $2.07 billion to the Australian economy through increased visitor flows over the next five years.
“This partnership is a key element of Virgin Australia’s long-term strategy and represents a significant vote of confidence in the Australian aviation sector,” she said in a statement. “It will enhance Virgin Australia’s competitive position, ultimately leading to more choices and better value fares for consumers.”
Virgin Australia serves as the primary competitor to Qantas and its budget airline Jetstar on major domestic routes.
In April 2020, Virgin Australia became one of the first major airlines globally to enter voluntary administration due to the impacts of the Covid pandemic. Bain Capital, a US private equity firm, acquired the airline for $2.4 billion, and it emerged from administration in November 2020.
The announcement of Qatar Airways’ minority stake follows the Australian federal government’s decision in 2023 to block an application for the airline to operate additional weekly flights between Doha and Sydney, Melbourne, Brisbane, and Perth.
