QATAR AIRWAYS PLANS TO ACQUIRE 25% STAKE IN VIRGIN AUSTRALIA

Qatar Airways plans to acquire a 25 per cent equity stake in Virgin Australia in a deal that includes the Australian carrier launching flights to Doha and improved market access for the Gulf carrier as it expands its global network to tap into rising travel demand.

The Qatari carrier is purchasing the minority shareholding from Virgin Australia’s owner Bain Capital, the two airlines said. They did not disclose the financial terms of the deal, which remains subject to regulatory approval.

“The alignment of our two airlines is significant, the relationships are deep,” Qatar Airways group chief executive Badr Al-Meer, said. “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.”

Virgin Australia, which has been a codeshare partner with the Gulf carrier since 2022, plans to launch flights from Brisbane, Melbourne, Perth and Sydney to Doha as part of the agreement.

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

Qatar Airways’ planned stake in the Australian carrier, which was rescued by Bain Capital after its bankruptcy during the pandemic, is the latest in a series of acquisitions the Gulf airline has made in recent years.

In August, the airline signed an agreement to acquire a 25 per cent stake in South African carrier Airlink as part of plans to expand its route network and boost passenger numbers across the African continent.

Qatar Airways' portfolio of minority shareholdings in global airlines includes British Airways' parent company International Airlines Group (IAG), Hong Kong's Cathay Pacific, Guangzhou-based China Southern Airlines and Latam Airlines Group.

The Doha-based airline has also agreed to buy a 49 per cent stake in the East African airline RwandAir and in 2019 took a 60 per cent share in the new $1.3 billion Bugesera International Airport, south-east of the Rwandan capital Kigali.

The planned investment by Qatar Airways in Australia “will provide access to the critical scale and expertise” and the minority stake serves as a “cornerstone investment” ahead Virgin Australia’s return into public ownership.

The deal will “unlock new areas of co-operation with Virgin Australia, all of which will help to drive additional consumer and economic benefits”, the Australian airline 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,” Virgin Australia group chief executive, Jayne Hrdlicka, said.

The proposed long-haul services between Australia and Doha are estimated to generate an economic benefit of A$3 billion ($2.07 billion) for the Australian economy through incremental visitor flows over the next five years, she said.

“Additional benefits will flow from increased freight capacity, supporting Australia’s high-value exports to markets such as the Middle East and Europe,” Ms Hrdlicka said.

2024-10-01T08:43:05Z dg43tfdfdgfd