Qatar Airways Group hasto buy 25% of Virgin Australia.
The investment allows the airline to re-enter the long-haul international flight market for the first time since 2020.
The transaction still needs to be approved by a number of regulatory bodies. This includes the ACCC and Australia’s Foreign Investment Review Board.
Virgin Australia
Virgin Australia currently operates domestic and short-haul international flights. It entered administration (when a company is unable to continue operations) in 2020. Private equity firm Bain Capital bought a majority stake in Virgin, moving the company out of administration.
Since then, thehas shifted away from operating its own long-haul international routes. It instead relies on flight-share arrangements with partner airlines.
In 2022, Qatar Airways partnered with Virgin in a flight-sharing capacity, providing access to Europe, the Middle East, and Africa via Doha.
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Under the new agreement with Qatar Airways, where it buys a 25% stake in Virgin, the Australian airline plans to launch its own long-haul flights. This includes flights from Brisbane, Melbourne, Perth, and Sydney to over 100 new international options, via Doha.
The proposed services are set to begin in mid-2025, pending approval competition and foreign investment bodies.
The deal between Qatar Airways and Virgin comes at a challenging time for the domestic aviation industry after two independent domestic airlines, Rex and Bonza, collapsed this year.
Last year, thethat the domestic duopoly between Virgin and Qantas is pushing up ticket prices and lowering customer experience.
In April 2023, Qantas and Virgin carried 94% of domestic passengers in Australia.
