Qatar Airways and the Australian company Virgin Australia sealed an agreement in 2022 conventional cooperation agreement which included codeshare flights between the two carriers' destinations, the possibility of earning miles on frequent flyer programmes and the use of premium airport services. Today, Qatar Airways is going one step further. The Doha-based company has just announced its intention to acquire a minority stake of 25 % in Virgin Australia with Bain Capital.
This acquisition of capital still has to be approved by the Foreign Investment Review Board. On the face of it, this could be a formality, given that Australian aviation was recently rocked by the bankruptcy of the continent's third largest carrier, Rex Airlines, as well as the low-cost carrier Bonza.
Virgin Australia approaching Doha?
The 25% investment in the capital of Virgin Australia should cement the future of this carrier. And according to Qatar Airways, strengthen competition in Australia's aviation sector. Australian consumers will have access to even lower airfares and greater choice. Virgin Australia will benefit from the expertise of a leading global airline.
The acquisition of Qatar Airways Group will result in greater synergy between the networks. Subject to authorisation by the Australian Civil Aviation Authority, this cooperation should enable Virgin Australia to launch flights from Brisbane, Melbourne, Perth and Sydney to Dohawith a connection to Qatar Airways' global network.
These additional flights will give Australian travellers access to more 100 new connecting routes across Europe, the Middle East and Africa. The carrier could start operating these routes as early as mid-2025, notwithstanding the possibility of leasing long-haul aircraft and crews.
More competition in Australia
The extension of codeshare and collaboration agreements will provide access to a greater number of international destinations. As well as improved schedules and frequencies. The agreement also includes new benefits for members of the Velocity (Virgin Australia) and Club Privilège (Qatar Airways) frequent flyer programmes.. Finally, Qatar Airways believes that travellers will benefit from lower air fares.
Virgin Australia's Group Managing Director, Jayne Hrdlika, analysed the benefits of this partnership. " It provides the missing piece in Virgin Australia's long-term strategy. It is also a huge vote of confidence in Australian aviation. Above all, it will strengthen Virgin Australia's ability to compete in the long term, which will inevitably mean greater choice and even lower air fares for consumers"..
