AIRLINES & ALLIANCES

Virgin Australia and Qatar Airways Partnership Takes Off

Australian travellers are set to benefit after a deeper strategic partnership between Virgin Australia and Qatar Airways Group was given the green light by the Australian Government. 

Qatar Airways Group’s minority 25 per cent investment in Virgin Australia has now received Foreign Investment Review Board (FIRB) approval following the Federal Treasurer’s announcement today. This follows the Australian Competition and Consumer Commission’s (ACCC) Draft Determination on 18 February indicating its intention to authorise the airlines’ integrated alliance, with final approval expected in March/April 2025. Together, they help open the door to the airline’s return to long-haul international flying.

Virgin Australia now awaits a decision from the International Air Services Commission (IASC) on what is an uncontested allocation of air rights for services between Australia and Qatar, due to commence in June.

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Equity investment  

Qatar Airways Group’s 25 per cent stake will provide Virgin Australia with access to the scale and expertise of a world-leading global airline, strengthening its ability to compete domestically and internationally and driving increased competition in Australian aviation.

Bain Capital, Virgin Group, and Queensland Investment Corporation will retain shareholdings in Virgin Australia.   

Long-haul flying and integrated alliance  

Subject to IASC approval, Virgin Australia will return to long-haul flying in June 2025, with flights from Sydney, Brisbane, and Perth to Doha. Flights from Melbourne to Doha are scheduled to commence in December 2025. These flights will be operated utilising aircraft wet-leased from Qatar Airways. As well as enhancing competition and placing downward pressure on international airfares, these flights will provide a significant boost to the Australian visitor economy, including the tourism sector, generating an estimated $3 billion in economic value over the next five years.  

Thanks to the airlines’ integrated alliance, customers on Virgin Australia’s new Doha flights will be able to connect seamlessly to Qatar Airways’ global network, including more than 100 new connecting itineraries across Europe, the Middle East and Africa. The expanded codeshare and collaboration arrangement will also provide access to increased points earn and redemption opportunities for members of Velocity and Qatar Airways’ Privilege Club.  

Following consultation with unions and relevant cabin crew and pilot communities, there has been an overwhelming response to the expressions of interest for secondment opportunities for Virgin Australia pilot and cabin crew with Qatar Airways. This will also provide promotional opportunities for other team members and new hires through the backfilling of seconded staff.  

Other areas of cooperation 

Virgin Australia and Qatar Airways signed a Memorandum of Understanding (MoU) to collaborate on a range of sustainability initiatives in October 2024. Areas of focus under the MoU include aiming to advance the use of Sustainable Aviation Fuel, environmental management including waste and energy management, sustainable procurement, and aviation workforce development.

Qatar Airways Group Chief Executive Officer, Engr. Badr Mohammed Al-Meer said: “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.”

Virgin Australia Group Chief Executive Officer, Ms. Jayne Hrdlika, 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.” 

Bain Capital Partner, Mr. Mike Murphy, said: “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. *Subject to final regulatory approvals.

“Bain Capital remains the majority shareholder and is committed to Virgin Australia’s long-term success.”

Source: Qatar Airways