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Virgin Australia has confirmed speculation that Qatar will buy a 25 per cent stake in the airline – but surprisingly announced it will also wet-lease aircraft from the international carrier to fly services to Doha.
Subject to approval from the Foreign Investment Review Board, the deal would effectively allow Qatar to grow its footprint in Australia without needing to expand bilateral air service agreements.
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The news comes just over a year after Transport Minister Catherine King controversially blocked the expansion of Qatar flights into major Australian airports – a decision that Virgin, a codeshare partner of Qatar, criticised.
The new deal will specifically see Virgin sell wet-leased services operated by Qatar Airways from Sydney, Melbourne, Brisbane and Perth to Doha beginning in mid-2025. It will be Virgin’s first attempt to fly wide-body international flights since emerging from administration and switching its fleet to predominantly 737s.
“I am delighted that our closer relationship allows us to put our ‘toe in the water’ regarding long-haul international, as well as the ability to deepen other areas of existing cooperation, including between our respective loyalty programs and code sharing arrangements,” said Virgin Australia CEO Jayne Hrdlicka.
“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.
“Qatar Airways has been a valued codeshare partner of Virgin Australia since 2022. This investment by the world’s best airline will deepen an already strong partnership by bringing critical scale and the best industry expertise to support our long-term competitiveness and growth.
“This proposed investment is subject to regulatory approval. We do not take this for granted and have made submissions outlining the benefits of the transaction for Australian aviation, Australian travellers and the Australian economy.”
The move will also enable deeper ties between Virgin’s Velocity Frequent Flyer and Qatar Airways’ Privilege Club loyalty programs, as well as expanded codesharing agreements and the ability to better co-ordinate scheduling and networks between the two airlines.
Qatar Airways Group CEO Engr. Badr Mohammed Al-Meer said the carrier is “really pleased” to be investing in Virgin.
“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,” he said.
“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.”
Virgin Australia has been majority-owned by Bain Capital since it was bought out of administration in late 2020, with Virgin Group and the Queensland Investment Corporation (QIC) also holding stakes in the airline.
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says:Yes a great result for VOZ in that they have a major investor that is an airline (voted the worlds’ most popular) as opposed to an investment banking org. that would only be looking at the “return”:- in addition, a bit down the line, some cute aircraft scheduling could well be of great benefit to VOZ’s near medium haul international routes without the capital set up costs needed by them. And to think, as was published, Bain wanted the Boss Lady out???
What a swan song my Lady, best wishes!