Deal will enable Virgin Australia to launch flights from Brisbane, Melbourne, Perth and Sydney to Doha
Qatar Airways has announced plans to acquire a minority 25 percent equity stake in Virgin Australia from Bain Capital, subject to approval, in a bid to boost ties between the two airlines. The deal will raise competition in Australia’s aviation sector, ensuring Australian consumers have access to even better value airfares and greater choice.
Qatar Airways Group’s investment will provide access to the critical scale and expertise of a world leading global airline. The minority stake also serves as a cornerstone investment ahead of an anticipated return of Virgin Australia into public ownership. Bain Capital said last year that it was exploring an IPO of Virgin Australia shares, which it bought for $2.42 billion.
“This partnership brings the missing piece to Virgin Australia’s longer-term strategy and is a huge vote of confidence in Australian aviation,” stated Jayne Hrdlicka, Virgin Australia group CEO.
Greater connectivity across global network
Subject to ACCC authorization, the Qatar Airways deal will enable Virgin Australia to launch flights from Brisbane, Melbourne, Perth, and Sydney to Doha, connecting seamlessly with Qatar Airways’ global network. These extra flights will open up more than 100 new connecting itineraries across Europe, the Middle East, and Africa for Australian travelers.
The codeshare and collaboration arrangement between the two carriers will also provide access to a greater range of international destinations with better schedules and frequencies. In addition, they will raise redemption opportunities for members of Velocity and Qatar Airways’ Privilege Club, and provide broader access to great value fares for leisure travelers, small and medium-sized enterprises, and corporate customers.
Deal to generate economic benefit of A$3 billion
Reflecting on the new proposed long-haul services between Australia and Doha, Hrdlicka also noted that they were estimated to generate an economic benefit of around A$3 billion to the Australian economy through incremental visitor flows over the next five years.
Additional benefits will flow from greater freight capacity, supporting Australia’s high-value exports to markets such as the Middle East and Europe.
“This investment by the world’s best airline will deepen an already strong partnership by bringing critical scale and the best industry expertise to support our long-term competitiveness and growth,” added Hrdlicka.
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Mutual focus on sustainability
An important area of future focus for both Qatar Airways and Virgin Australia is sustainability. This also includes the development of sustainable aviation fuel. The partnership also comes at a great time to explore opportunities as the new Western Sydney Airport and its economic ecosystem develop.
Hrdlicka also noted that she was particularly excited by the potential to expand the two airlines’ relationship into new areas such as sustainability and development of the western Sydney aviation ecosystem, including broader jobs and training opportunities.
“Sustainable aviation fuel will play a critical role in aviation’s long-term decarbonization effort. Virgin Australia has been an active participant in the federal government’s Jet Zero Council, and we expect our partnership with Qatar Airways to support SAF opportunities in a manner consistent with the federal government’s Future Made in Australia agenda,” she added.
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