Qatar Airways to acquire 25% stake in Virgin Australia, boosting competition and connectivity
Qatar Airways Group has announced plans to acquire a 25% minority stake in Virgin Australia, marking a significant development in the Australian aviation sector. This strategic move is set to enhance competition in the market, providing Australian travellers with more choice, better value, and improved connectivity both domestically and internationally.
Qatar Airways, one of the world’s largest and most highly awarded airlines, will deepen its existing partnership with Virgin Australia through this investment, pending regulatory approval. The equity stake is expected to boost Virgin Australia’s financial resilience, unlock synergies and lay the groundwork for long-haul international flights by mid-2025, offering Australians new travel opportunities to destinations across Europe, the Middle East, and Africa via Doha.
Virgin Australia’s CEO, Jayne Hrdlicka, emphasised the long-term benefits of the investment, noting that it strengthens Virgin’s ability to compete, creates more jobs in Australian aviation, and brings consumers additional value and choice in airfares. She said,
This partnership brings the missing piece to Virgin Australia’s longer-term strategy and is a huge vote of confidence in Australian aviation.
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 collaboration will also expand the airlines’ existing codeshare agreement, benefiting members of both Virgin Australia’s Velocity and Qatar Airways’ Privilege Club loyalty programmes. This will offer enhanced earning and redemption opportunities, along with access to a wider range of destinations and improved schedule options for business and leisure travellers alike. The investment is part of Qatar Airways’ broader strategy to bolster its presence in Australia, adding significant value to Australian consumers and businesses.
Paul Baker, Sales Director of Global Travel Management, commented on the benefits to UK-based business travellers:
This enhanced partnership between Virgin Australia and Qatar Airways presents exciting opportunities for our customers, offering greater connectivity between the UK and Australia. It promises to deliver more competitive fares and streamlined travel options, which is great news for UK-based business travellers.
The partnership also holds potential for collaboration in sustainability initiatives, including the development of Sustainable Aviation Fuel (SAF), an area of growing importance for both airlines. Virgin Australia has been a key player in the Australian government’s Jet Zero Council and expects this partnership to support the country’s sustainability goals.
Qatar Airways Group CEO, Eng. Badr Mohammed Al-Meer, expressed pride in the alignment of the two airlines, stating:
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.
As Virgin Australia eyes a return to public ownership, this investment from Qatar Airways positions the airline for continued growth and competitiveness, offering long-term benefits to consumers and the broader economy.
For more information on how this development could impact your travel arrangements, please contact your Global Travel Management Account Manager.
