Qatar Airways to acquire 25% stake in Virgin Australia

Qatar Airways Group has announced its intention to acquire a minority 25% equity stake in Virgin Australia from Bain Capital, subject to approval by the Foreign Investment Review Board (FIRB).

A deeper strategic relationship between the two carriers will increase competition in the Australian aviation market, ensuring consumers have access to better value airfares and greater choice. Domestic competition in Australia is heavily reliant on Virgin Australia’s success amid the inevitable ups and downs of the aviation industry. Qatar Airways Group’s strategic investment will provide Virgin Australia with access to the critical scale and expertise of a leading global airline. This minority stake also serves as a cornerstone investment ahead of an anticipated return of Virgin Australia to public ownership, providing an opportunity for Australians to participate in the airline’s future growth.

The equity investment by Qatar Airways Group will unlock new areas of cooperation, driving additional consumer and economic benefits. Subject to authorisation by the Australian Competition and Consumer Commission (ACCC), this collaboration will enable Virgin Australia to launch flights from Brisbane, Melbourne, Perth and Sydney to Doha, connecting seamlessly into Qatar Airways’ global network. These additional flights will offer over 100 new connecting itineraries across Europe, the Middle East and Africa for Australian travellers. The proposed wet lease services will commence in mid-2025, allowing Virgin Australia to evaluate the longer-term feasibility of operating wide-body aircraft while offering Australians increased competition for their long-haul travel needs in the near future.

The deepened partnership has the potential to support significant job creation and economic growth, not just within Virgin Australia, but also across the broader aviation and tourism sectors in Australia. An important area of future focus is sustainability, including the development of sustainable aviation fuel. This partnership also comes at an opportune time to explore new possibilities as the new Western Sydney Airport and its surrounding economic ecosystem are developed.