Qatar Airways concludes regulatory approval for a 25% investment in Virgin Australia, paving the way for Australian airlines to eventually resume long-haul operations.
The “strategic partnership” between the two careers, first announced in October 2024, was greenlighted by the Australian Foreign Investment Review Board on February 27th. The approval comes more than a week after the anti-trust regulator proposed to approve the commercial partnership.
Virgin Owners Bain Capital, along with Virgin Group and Queensland Investment Corporation, will hold shareholdings in the airline after investing in Qatar.
This decision means that Virgin Australia will finally be able to resume the Boeing 777, which wetted the 777 from Qatar to fly between Australia and Doha.
The airline aims to start these flights by June and is currently awaiting a decision to assign air traffic rights from the Australian International Air Services Commission.
Given green light, flights from Sydney, Brisbane and Perth will be launched in June to Doha, followed by flights from Melbourne to Qatar's capital in November.
“Along with strengthening competition and putting downward pressure on international airfares, these flights will significantly boost the Australian visitor economy,” says Virgin Australia.
The partnership will also allow Virgin Australian pilots and cabin crews to Qatar Airways secondment.
“This also provides promotional opportunities for other team members and offers new recruiting through the reclamation of intervened staff,” Virgin Australia said.
Qatar first announced its intention on October 1 to acquire a 25% stake in a minority in Virgin Australia, in an undisclosed amount. It said the deal would provide Virgin Australia with “access to the critical scale and expertise of the world's leading global airline.”
Virgin Australia chief Jayne Hrdlicka welcomes the “new era” of airlines, adding that the investment in Qatar Airways is a huge vote of trust in our business and Australian Airlines. It will fuel us for long-term success and fuel our bold transformation agenda. ”
