Sydney, October 01 (QNA) – Qatar Airways Group announced plans to acquire a minority 25% equity stake in Virgin Australia from Bain Capital (subject to FIRB approval).
The existing partnership between Virgin Australia and Qatar Airways will be strengthened with todays announcement.
A deeper strategic relationship between Virgin Australia and Qatar Airways will drive increased competition in Australian aviation. This will ensure Australian consumers have access to even better value airfares and greater choice.
Qatar Airways Groups strategic investment will provide access to the critical scale and expertise of a world leading global airline. The minority stake also serves as a cornerstone investment ahead of an anticipated return of Virgin Australia into public ownership and the opportunity that would provide for Australians to share in Virgin Australias future.
The equity investment by Qatar Airways Group will unlock new areas of cooperation with Virgin Australia, all of which will help to drive additional consumer and economic benefits. Subject to ACCC authorization, this cooperation will enable Virgin Australia to launch flights from Brisbane, Melbourne, Perth and Sydney to Doha, connecting seamlessly into Qatar Airways global network. These extra flights will open up more than 100 new connecting itineraries across Europe, the Middle East and Africa for Australian travelers.
The proposed wet lease services will begin in mid-2025, allowing Virgin Australia to assess the longer-term merits and viability of wide-body aircraft flying while providing Australians with greater local competition for their long-haul travel needs in the near-term.
The expanded codeshare and collaboration arrangement will provide access to a greater range of international destinations with improved schedules and frequencies, increased earn and redemption opportunities for members of Velocity and Qatar Airways Privilege Club, and broader access to great value fares for leisure travelers, small and medium-sized enterprises, and corporate customers.
The deepened partnership has the potential to underpin significant jobs and economic growth, not just in Virgin Australia but across both the broader aviation and tourism sectors in Australia.
An important area of future focus is sustainability, including the development of Sustainable Aviation Fuel. The partnership also comes at a great time to explore opportunities as the new Western Sydney Airport and its economic ecosystem are developed.
Qatar Airways Group Chief Executive Officer, Eng. Badr Mohammed Al Meer said: “We are really pleased to be announcing our proposed strategic investment in Virgin Australia today. 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. 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.” (MORE)
