Sydney, Australia: A new chapter in Australian aviation begins as Virgin Australia and Qatar Airways expand their strategic partnership. The Australian Government recently approved Qatar Airways Group’s 25% minority investment in Virgin Australia. This approval follows a positive recommendation from the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board (FIRB). With this investment, both airlines aim to enhance competition in Australia’s aviation market and improve service options for customers.
Qatar Airways’ stake in Virgin Australia will provide the airline with valuable access to global expertise. This partnership strengthens Virgin Australia’s ability to compete both domestically and internationally, improving its position in the aviation industry. In return, Qatar Airways benefits from an enhanced presence in Australia and greater competition in the region.
Virgin Australia is now waiting for approval from the International Air Services Commission (IASC) for new air rights to operate direct flights between Australia and Qatar. If granted, Virgin Australia will begin long-haul services from Sydney, Brisbane, and Perth to Doha in June 2025. Flights from Melbourne to Doha will follow in December 2025, all using aircraft leased from Qatar Airways. These new routes will not only increase competition but also reduce airfares, benefiting Australian consumers. Additionally, they will provide a significant boost to Australia’s tourism sector, potentially generating an estimated $3 billion in economic value over the next five years.
Through this integrated partnership, Virgin Australia’s passengers will gain access to Qatar Airways’ extensive global network. Travelers will be able to seamlessly connect to destinations across Europe, the Middle East, and Africa. Furthermore, this expanded alliance offers new benefits for loyalty program members, such as increased opportunities for earning and redeeming points through both Virgin Australia’s Velocity program and Qatar Airways’ Privilege Club.
The collaboration extends beyond just flights. In October 2024, both airlines signed a Memorandum of Understanding (MoU) to cooperate on sustainability initiatives. This includes efforts to advance the use of Sustainable Aviation Fuel and improve waste and energy management in aviation operations.
Both CEOs expressed their excitement about the partnership. Engr. Badr Mohammed Al-Meer, CEO of Qatar Airways, emphasized the long-term benefits for Australian passengers, businesses, and the broader economy. Virgin Australia CEO Jayne Hrdlika highlighted that this partnership is a significant step in the airline’s transformation, positioning Virgin Australia for sustained growth and success. She also expressed gratitude to the Federal Treasurer for supporting the investment and fostering competition in the aviation market.
With strong backing from Qatar Airways and ongoing support from Bain Capital, Virgin Australia is set for a bright future. Both airlines are poised to offer Australian travelers more choices, greater value, and improved service as they work together to revolutionize long-haul travel and elevate Australia’s aviation sector.
