Qatar Airways Seeking 25% Stake In Virgin Australia

AFP/APP

Sydney: Qatar Airways has announced a bid to acquire a 25% stake in troubled airline Virgin Australia, a move that could significantly disrupt Australia’s air travel market, which is currently dominated by Qantas.

The proposed agreement, revealed on Tuesday, has been widely speculated and involves Virgin’s owner, Bain Capital.

The partnership would enhance flight connectivity between major Australian cities—Brisbane, Melbourne, Perth, and Sydney—and Doha, facilitating better access to Europe and beyond.

The companies stated that this collaboration aims to provide Australian consumers with improved value and increased options for air travel.

Should the deal proceed, it might also pave the way for Virgin to re-enter the stock market, although it remains subject to regulatory approval and potential political scrutiny.

Historically, Qantas has actively opposed Qatar’s expansion plans, evidenced by the Australian government’s rejection of Qatar’s request for additional international flights in 2023.

Qantas and its budget airline Jetstar control over 61% of the domestic market, maintaining significant political influence. Critics have accused the government of favoring Qantas amid allegations of price gouging and overbooking, particularly given the airline’s record profits and the high cost of international flights.

Qatar Airways CEO Badr Mohammed Al-Meer emphasized the benefits of competition, stating that the partnership would enhance service quality and support the Australian economy and job market.

“We believe competition in aviation is a good thing and it helps raise the bar, ultimately benefiting customers,” he said.