Qatar Airways Buys 25% of Virgin Australia, Challenging Qantas
Qatar Airways has purchased a 25% stake in Virgin Australia, giving the airline a competitive boost in its battle with Qantas. The deal will also see new routes from Australia to Doha.
In a move that could shake up Australia’s aviation landscape, Qatar Airways has acquired a 25% stake in Virgin Australia, previously held by U.S. private equity firm Bain Capital. The investment, for an undisclosed amount, positions Virgin Australia to better compete against Qantas Airways, the dominant player in Australian routes. The deal will require approval from Australia’s Foreign Investment Review Board.
Virgin Australia’s CEO, Jayne Hrdlicka, hailed the partnership as a crucial step in strengthening the airline’s competitive position, granting it access to the expertise and scale of Qatar Airways. This move also lays the groundwork for Virgin Australia’s potential public listing, which Bain Capital has been considering since purchasing the airline in 2020.
As part of the agreement, Virgin Australia plans to launch new flights from major Australian cities to Doha by mid-2025, which will provide Qatar Airways with additional traffic to its Doha hub. The deal comes after Qatar Airways was denied additional flying rights into Australia last year, sparking debate about the government’s ties with Qantas, which had lobbied against the Qatari carrier’s expansion.
Qatar Airways CEO Badr Mohammed Al Meer emphasized the importance of competition in aviation, noting that increased rivalry benefits customers. The sale is now under review by the Australian government, which will ultimately decide the future of this high-stakes partnership.
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