Virgin Australia has announced that the Government of Australia has approved Qatar Airways Group’s 25 percent minority stake in Virgin Australia. Virgin will commence service to Doha from June 2025, resulting in downward pressure on airfares.
On Thursday (February 27, 2025), Virgin Australia announced that the Government of Australia has officially approved Qatar Airways Group’s acquisition of a 25 percent minority stake in Virgin Australia. This follows the Australian Competition and Consumer Commission’s (ACCC) Draft Determination of February 18th, indicating its intention to authorize the airline’s integrated alliance, with final approval expected in March/April 2025. The carrier now awaits a decision from the International Air Services Commission (IASC) on what an uncontested allocation of air rights for services between Australian and Qatar, due to commence in June.
Qatar Airways Group’s stake will provide Virgin Australia with access to the scale of a world-class global airline, strengthening their ability to compete domestically and internationally. Bain Capital, Virgin Group, and Queensland Investment Corporation will retain their shareholders in Virgin Australia. Subject to IASC approval, the airline will return to long-haul flying in June 2025, with flights from Sydney, Brisbane and Perth to Doha, followed by Melbourne-Doha flights in December 2025. These flights will be operated with aircraft wet-leased from Qatar Airways.
Thanks to the alliance, customers on Virgin Australia’s new Doha flights will enjoy seamless connectivity to over 100 new destinations across Qatar Airways’ extensive global network. Qatar Airways’ Privilege Club and Virgin Australia’s Velocity Frequent Flyer members will also have access to additional opportunities to earn and redeem points. The carriers also plan on collaborating in other areas such as SAF, environmental management including waste and energy management, sustainable procurement, ands aviation workforce development.
In Thursday’s announcement, Virgin Australia Group’s CEO, Jayne Hrdlicka, said,
“Today we welcome a new era for Virgin Australia. Qatar Airways’ investment is a huge vote of confidence in our business and Australian aviation more broadly. It sets us up for long-term success and adds fuel to our bold transformation agenda.”
“This is a major win for Australian consumers, who are already benefiting from more choice and greater value when travelling to Europe, the Middle East and Africa since our flights went on sale in December. Domestically, we are competing well and performing stronger than at any other point in our 24 year history. Being backed by one of the world’s largest airlines now gives us the scale and access to industry expertise which will support continued growth in line with the market domestically, improve our ability to compete for key segments of the market and add momentum to our margin ambitions.
“Today is an incredibly proud day for everyone in the Virgin Australia team. Each of our 8,000 team members has played an important role in getting us to this point. Many of our people are personally excited about the secondment opportunities, and we have seen this through the extraordinary response to the expressions of interest for pilot and cabin crew roles with Qatar Airways. Virgin Australia has a bright future, and we will continue to go from strength to strength with Qatar Airways by our side.
“We thank the Federal Treasurer for his decision, and join him in recognising the positive outcome for competition, consumers and jobs growth. Today is great news for the many stakeholders that rely on Virgin Australia’s success.”
Also commenting on the expanded collaboration, Qatar Airways Group’s CEO, Engr. Badr Mohammed Al-Meer, added,
“This latest development is a significant step towards solidifying the strong and enduring relationship that continues to evolve between Qatar Airways Group and Virgin Australia. It is also a huge boost to our shared ambition to create even greater choice and value for all Australian passengers, with healthy competition and world-class service at the very core of our collective offering.
“We are confident in our ability to deliver an alliance between our two airlines that will provide immense benefit to customers, Australian businesses, Australian jobs and the wider economy.”
Bain Capital Partner Mike Murphy added,
“We’re delighted to welcome Qatar Airways Group as a partner in Virgin Australia.
“Virgin Australia has emerged as a strong and profitable company with an attractive market position, a loyal customer base, and an exciting growth trajectory. Now, through our partnership with Qatar Airways, we’re unlocking new areas of cooperation with one of the world’s leading airlines.
“Bain Capital remains the majority shareholder and is committed to Virgin Australia’s long-term success.”
Founded in 2000 by Sir Richard Branson, the Virgin Australia Group operates an extensive domestic network, short-haul international services, charter and cargo operations, as well as the Velocity Frequent Flyer program. The Group employs over 8,000 team members and boasts more than 12 million Velocity members who can use their Points to redeem flights to over 600 destinations worldwide with Virgin Australia or their extensive list of international airline partners.
Source: Virgin Australia