Qatar Airways is set to acquire a 25% stake in Virgin Australia from private equity firm Bain Capital, in a move that will deepen its strategic partnerships and expand its influence in the global aviation market.
The acquisition, subject to regulatory approval from Australia’s Foreign Investment Review Board (FIRB), follows the two airlines’ codeshare agreement initiated in 2022. Qatar Airways’ investment signals a long-term commitment to the Australian aviation industry.
This is not the first significant international acquisition for the Doha-based airline. In August 2024, Qatar Airways announced its 25% stake in South African airline Airlink and continues to hold shares in several other global carriers, including a pending 49% acquisition of Rwanda’s RwandAir. Qatar Airways is also a major stakeholder in International Airlines Group (IAG), the parent company of British Airways, and holds shares in Cathay Pacific and LATAM Airlines.
Driving Increased Competition in Australia
Virgin Australia sees this partnership as a critical move for long-term growth and competitiveness. Commenting on the acquisition, 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 investment will not only strengthen Virgin Australia’s operations but also open new opportunities for the airline. Under the new agreement, Virgin Australia is expected to launch long-haul flights from Brisbane, Melbourne, Perth, and Sydney to Doha by mid-2025, providing Australian travelers access to Qatar Airways’ extensive global network. These new flights will generate an estimated A$3 billion in economic benefits over the next five years.
Strengthening a Resilient Partnership
Qatar Airways Group CEO Badr Mohammed Al-Meer highlighted the importance of competition and collaboration, stating, “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.”
The partnership between the two airlines is set to enhance connectivity for Australians, with access to over 100 new connecting itineraries across Europe, the Middle East, and Africa. Increased freight capacity will also support Australia’s high-value exports.
Looking Ahead: Sustainability and Western Sydney
Beyond immediate economic and operational gains, the partnership will explore sustainability initiatives, including the development of Sustainable Aviation Fuel (SAF). Virgin Australia, an active participant in Australia’s Jet Zero Council, sees this partnership as pivotal to advancing its sustainability goals. The cooperation also comes at a key time as the new Western Sydney Airport and its economic ecosystem are developed, promising broader job and training opportunities.
A New Chapter for Virgin Australia
For Bain Capital, which revived Virgin Australia after a decade of losses, the partnership marks a successful transition. Bain Capital Partner Mike Murphy stated, “We are pleased to welcome Qatar Airways Group as a partner at this stage to build on Virgin Australia’s strong foundation.” Virgin Australia’s return to public ownership could be on the horizon, with Qatar Airways’ investment serving as a cornerstone for future growth.
In summary, Qatar Airways’ acquisition of a 25% stake in Virgin Australia will not only enhance competition but also drive economic growth, sustainability, and innovation in the Australian aviation industry. The partnership reflects a shared vision for the future of aviation and a strong commitment to delivering the best possible service to passengers.