Australia’s Treasurer, Jim Chalmers, has granted approval for Qatar Airways to acquire a 25% stake in Virgin Australia, a deal valued at a significant step forward for both airlines and Australian aviation. This approval follows a recommendation from the Foreign Investment Review Board (FIRB) and comes with key conditions, including Australian representation on Virgin’s board and long-haul flight training for Australian crews in Doha.
Chalmers highlighted that the deal would generate more international flights and job opportunities, with the CEOs of Virgin Australia and Qatar Airways assuring that the investment would benefit Australian workers. Qatar Airways’ minority stake acquisition follows the Australian Competition and Consumer Commission’s (ACCC) backing of the partnership, stating it would enhance services and offerings for air travelers.
The deal will also pave the way for a ‘wet lease’ arrangement between the two carriers, where Qatar Airways will provide aircraft, crew, and maintenance services to Virgin. This is expected to increase flight capacity between Australia and Europe by mid-2025.
Although the deal still requires final approval from the International Air Services Commission (IASC) and a decision on Virgin’s air rights, the move has been met with enthusiasm. Virgin Australia CEO Jayne Hrdlicka called it a “huge vote of confidence,” while Qantas CEO Vanessa Hudson expressed a welcoming stance towards the increased competition, stressing that Qantas’ focus remains on customer satisfaction.
The deal’s approval signals a new chapter for Virgin Australia, bolstering its long-term prospects in the competitive aviation sector.
