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Qatar Airways to buy 25% stake in Virgin Australia

By Pramod Kumar
Qatar Airways and Virgin Australia employees take a selfie. Virgin Australia plans to launch flights from Brisbane, Melbourne, Perth and Sydney to Doha by mid-2025 Virgin Australia/X
Qatar Airways and Virgin Australia employees take a selfie. Virgin Australia plans to launch flights from Brisbane, Melbourne, Perth and Sydney to Doha by mid-2025

Qatar Airways is to acquire a minority 25 percent stake in Virgin Australia from US private equity firm Bain Capital to gain access to the wider Australian market.

The deal closure is subject to the approval of Australia’s foreign investment review board. No financial details were disclosed.

Last year, the airline’s former CEO Akbar Al-Baker told CNN that the Australian government’s decision to block Qatar Airways’ request for extra flights to Australia was “very unfair”.

The Doha-headquartered airline had requested an extra 21 services to Australia’s major airports. However, Australia’s transport minister Catherine King rejected the bid to add flights to Sydney, Melbourne and Brisbane, stating the “proposal was not in Australia’s interests”.

“This partnership brings the missing piece to Virgin Australia’s longer-term strategy,” Virgin Australia CEO Jayne Hrdlicka said.

“We do not take this for granted and have made submissions outlining the benefits of the transaction for Australian aviation, travellers and economy,” she said.

The minority stake divestment serves as a cornerstone investment ahead of an anticipated initial public offering of Virgin Australia.

As part of the deal, Virgin Australia plans to launch flights from Brisbane, Melbourne, Perth and Sydney to Doha by mid-2025, subject to regulatory approval.

These extra flights will open up more than 100 new connecting itineraries across Europe, the Middle East and Africa for Australian travellers.

Qatar Airways CEO Badr Mohammed Al Meer said the airline believes “competition in aviation was a good thing and it helps raise the bar”, supporting Australian jobs, businesses and the wider economy.

Qatar Airways owns minority stakes in British Airways owner IAG, Hong Kong’s Cathay Pacific Airways and China Southern Airlines.

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