Virgin Australia could soon be part-owned by Qatar Airways, opening a major Australia to the Middle East route to the roster by mind-2025.
Qatar Airways intends to take a 25 per cent stake in Virgin Australia, which will be subject to approval from the Foreign Investment Review Board.
The deal would allow flights from Australia’s four largest cities to Doha, under a plane and crew lease agreement.
In a statement, Virgin say the proposed minority ownership stake would creating “more choice and better value for Australians”.
“Domestic competition in Australia is dependent on Virgin Australia thriving through the inevitable ups and downs of aviation.”
The deal would be done by way of the Gulf airline acquiring 25 per cent of Virgin owner, Bain Capital’s stake.
“This partnership brings the missing piece to Virgin Australia’s longer-term strategy and is a huge vote of confidence in Australian aviation,” Virgin Australia chief executive Jayne Hrdlicka said.
The two airlines have “codeshared— flights since 2022. The proposed deal would allow Virgin to resume eight-hour-plus flights again, and has positive implications for the development sustainable aviation fuel, given Virgin Australia’s commitment to Australian jet fuel decarbonisation efforts, the statement reads.
“We believe competition in aviation is a good thing and it helps raise the bar, ultimately
benefiting customers,” Qatar Airways chief executive Badr Mohammed Al-Meer said.
“This agreement will also help support Australian jobs, businesses and the wider
economy.”
More to come
