Virgin Australia deal with Qatar set to offer more choice, value and competition
Virgin Australia’s existing partnership with Qatar Airways will be strengthened with the announcement that Qatar Airways Group intends to acquire a minority 25% equity stake in Virgin Australia from Bain Capital (subject to Australian government approval).
The strategic investment will drive increased competition in Australian aviation, ensuring Australian consumers have access to even better value airfares, greater choice and more long haul connectivity.
Qatar Airways is one of the world’s largest airlines and earlier this year was awarded the world’s best airline by Skytrax for the eighth time.
Subject to regulatory authorisation, this cooperation will enable Virgin Australia to launch flights from Brisbane, Melbourne, Perth and Sydney to Doha, connecting seamlessly into Qatar Airways’ global network. These extra flights will open up more than 100 new connecting itineraries across Europe, the Middle East and Africa for Australian travellers. The proposed wet lease services (leasing an aircraft and essential operating staff) will begin in mid-2025, providing Australians with greater local competition for long-haul travel.
Virgin Australia Group CEO Jayne Hrdlicka said: “This partnership brings the missing piece to Virgin Australia’s longer-term strategy and is a huge vote of confidence in Australian aviation. Importantly, it will further strengthen Virgin Australia’s ability to compete over the long term, which will inevitably translate into more choice and even better value airfares for consumers as well as additional Australian aviation jobs.”
The deepened partnership has the potential to underpin significant jobs and economic growth, not just in Virgin Australia but across both the broader aviation and tourism sectors in Australia. An important area of future focus is sustainability, including the development of Sustainable Aviation Fuel. The partnership also comes at a great time to explore opportunities as the new Western Sydney Airport and its economic ecosystem are developed.
Qatar Airways Group CEO Eng. Badr Mohammed Al Meer said: “We are really pleased to be announcing our proposed strategic investment in Virgin Australia today. The alignment of our two airlines is significant, the relationships are deep, and we could not be more proud to bring even more great value and choice to all Australians. 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.”
“Not only that, we believe competition in aviation is a good thing and it helps raise the bar, ultimately benefiting customers. This agreement will also help support Australian jobs, businesses and the wider economy.”
Bain Capital Partner, Mike Murphy, said: "Virgin Australia plays a pivotal role in connecting Australians with each other, and with the world. Over the past four years, we've had the privilege of working alongside a team that has shown the dedication and tenacity needed to revitalise the airline. We are pleased to welcome Qatar Airways Group as a partner at this stage to build on Virgin Australia’s strong foundation.”
The Virgin Group and Queensland Investment Corporation (QIC) remain shareholders in Virgin Australia.
