Qatar Airways expands into Australia through Virgin Australia

While Qatar Airways is facing relative hostility from the Australian aviation authorities to obtain new frequencies between Doha and Australia, the airline is circumventing the obstacle by acquiring a stake in Virgin Australia.
Qatar Airways takes 25% from Virgin Australia
(Photo: Virgin Australia)

After years of procrastination by the Australian government over the granting of traffic rights to Qatar Airwaysthe company has finally found a solution. It is acquiring a stake in the country's second-largest carrier, Virgin Australia. This investment has in fact received the green light from the Foreign Investment Review Board. It follows a favourable assessment by the Australian Competition and Consumer Commission (ACCC). On 18 February, the ACCC indicated its intention to authorise the integrated airline alliance. Final approval is expected in March/April 2025.

By taking 25% of Virgin Australia's capitalQatar Airways is ensuring the financial sustainability of the Australian airline. This investment also paves the way for the relaunch of intercontinental routes for Virgin Australia. The carrier hopes to obtain authorisation to fly between Australia and Qatar in June.

Virgin Australia plans to launch long-haul flights from SydneyBrisbane and Perth to Doha. Flights from Melbourne to Doha are scheduled to begin in December 2025. These flights will be operated by aircraft leased with crew from Qatar Airways. This increased competition on Australia's international routes is expected to boost Australia's economy, generating A$3 billion in added value over the next five years.

Thanks to the integrated alliance between the two airlines, customers on the new Virgin Australia flights to Doha will benefit from Qatar Airways' extensive global network, with over 100 new routes connecting to Europe, the Middle East and Africa. The expanded codeshare and collaboration agreement will also enable Velocity and Qatar Airways Privilege Club members to earn and redeem points on frequent flyer programmes.

Virgin Australia and Qatar Airways have also signed an agreement memorandum of understanding to collaborate on a series of sustainable development initiatives. This cooperation includes the use of sustainable aviation fuelthe environmental managementincluding waste and energy management, sustainable procurement and workforce development in the aviation sector.