Qatar Airways Wants To Buy 20% Of Virgin Australia

According to the Australian Financial Review, Qatar Airways could be nearing the purchase of a stake in Australian carrier Virgin Australia.

The chase of Virgin Australia from the Doha-based company is coming as it attempts to increase its market share in the country.

Unlike Qantas, Qatar Airways continued flying during the global pandemic and has since seen significant opportunities to pounce. The airline believes that if it could increase its flying into key cities, it would be able to lower prices, make travel more convenient, and provide greater opportunities for onward connectivity.

While Qatar Airways already has a significant presence in Australia, its attempts to grow haven’t come off as intended, as it received considerable pushback. Qatar feels the rejection came following the threat they would pose to flag-carrier Qantas, who also face mounting pressure from North American carriers.

In 2023, Qantas’s outgoing CEO, Alan Joyce, backed the government’s rejection of allowing Qatar Airways to expand further. Qatar was seeking 21 additional services per week to the East Coast of Australia, which would’ve added up to $800 million to tourism revenue.

Joyce argued that the rejection was in Australia’s best interests and protected the country. He revealed this at a committee investigating the cost-of-living crisis.

A purchase of Virgin Australia would likely be for a 20% stake in the carrier, which is owned by Bain Capital and was thrown into administration during the pandemic. As part of that major rebuild, the company removed all its widebodies, such as the 777 and A330, streamlining to a single-aisle fleet primarily focusing on short—to medium-haul routes across Australia and nearby locations.

If Qatar Airways were to proceed with its interest in obtaining 20% of Virgin Australia, an already existing partner, it would have greater access to Australia through another means. Furthermore, it would entice more loyal Virgin Australia customers to use QR alongside other prospective ones.