Qatar Airways Speculated to Consider Investment in Virgin Australia Amidst Bilateral Air Rights Row

Speculation is growing that Qatar Airways (QR) is exploring the possibility of acquiring a stake in Virgin Australia, amidst an ongoing dispute over additional flight rights to Australia. Reports and rumors have circulated about Qatar Airways’ interest in Virgin Australia, although there has been no official confirmation of this interest to date. Insiders have suggested that much of the reporting on this matter remains speculative and may not necessarily be accurate.

Virgin Australia is planning an initial public offering (IPO) on the Australian Stock Exchange (ASX) scheduled for November this year. The airline delisted after US investor Bain Capital acquired a 93% stake in the airline in 2020 following its voluntary administration.

In response to the bilateral air rights dispute, Virgin Australia has come to the defense of its codeshare partner, Qatar Airways. Virgin Australia’s CEO, Jayne Hrdlicka, called on the federal government to reconsider its decision to reject Qatar Airways’ application for an additional 21 weekly flights to Sydney Kingsford Smith, Melbourne Tullamarine, and Brisbane International. The proposed expansion of flights would have benefited Virgin Australia through the bilateral air rights agreement.

Qantas’s outgoing CEO, Alan Joyce, argued during a Senate committee hearing that more Qatar Airways flights could distort the market and impact the recovery of other airlines’ capacity. Qantas has a codeshare agreement with Qatar Airways’ competitor, Emirates.

The Australian government’s decision to block Qatar Airways’ request for additional flights came after a public outcry following an incident in October 2020 when a group of Australian women were forcibly removed from a Qatar Airways flight and subjected to invasive examinations after a newborn child was abandoned at Doha Hamad International Airport.