Qatar Airways Invests in Virgin Australia
Qatar Airways’ long-awaited plan to acquire a 25% minority stake in Australian low-cost carrier Virgin Australia has finally received the green light from the Australian Government’s Foreign Investment Review Board (FIRB). In a Federal Treasurer’s announcement on February 27, 2025, the FIRB approved the investment, following an earlier indication from the Australian Competition and Consumer Commission (ACCC) that it intended to permit the deal. The final regulatory approval is expected by late March or early April 2025, clearing the final hurdle for the investment.
The strategic move positions Qatar Airways, one of the world’s most financially robust carriers, to strengthen its international network by partnering with Australia’s second-largest carrier, which dominates domestic routes. Under the terms of the investment, current shareholders—including Bain Capital, Virgin Group, and the Queensland Investment Corporation—will retain their existing stakes in Virgin Australia, ensuring continuity in ownership while adding Qatar’s expertise and financial strength to the mix.
Virgin Australia Chief Jayne Hrdlicka welcomed the regulatory approval and heralded it as the start of a “new era for the airline.” “Qatar Airways’ investment is a huge vote of confidence in our business and Australian aviation more broadly. It sets us up for long-term success and adds fuel to our bold transformation agenda,” she stated. This infusion of capital and strategic partnership is seen as a pivotal step for Virgin Australia, which has been working to reestablish its brand and expand its network after previous challenges.
One of the most significant aspects of the deal is the anticipated revival of Virgin Australia’s long-haul international services. In a major strategic shift, the two carriers have already inked a codeshare agreement on flights connecting Doha in Qatar with key Australian cities. Subject to final approval from the International Air Services Commission (IASC), Virgin Australia is set to resume long-haul services on routes from Sydney, Brisbane, and Perth to Doha, with additional flights from Melbourne to Doha slated for late 2025. All these flights will be operated using widebody Boeing 777-300ER aircraft wet-leased from Qatar Airways—a type once operated by Virgin Australia on routes between the Australian East Coast and the United States before the airline went into administration.
The pairing of Qatar Airways and Virgin Australia is expected to intensify competition on international routes from Australia. Industry analysts predict that the increased capacity and enhanced connectivity will drive down international airfare, benefiting travelers and stimulating broader economic growth. In fact, the new international codeshare services could generate an estimated AUS$3 billion (approximately $3.3 billion) in economic value for the Australian tourism sector between 2025 and 2030.
Moreover, the partnership brings additional opportunities for staff development. Virgin Australia employees will be among the first to benefit from secondment opportunities to Qatar Airways, following extensive consultations with unions and crew communities. This initiative is expected to create promotional pathways and further boost employee morale as the airline embarks on its transformation.
Qatar Airways first announced its intention to acquire the 25% stake in Virgin Australia back in October 2024, promising that the deal would provide Virgin Australia with “access to the critical scale and expertise of a world-leading global airline.” With final regulatory approvals now in sight, the strategic investment is set to reshape Virgin Australia’s future and bolster Australia’s connectivity with the Middle East and beyond.
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