Qatar Airways set to acquire Virgin Australia

Qatar Airways has announced plans to buy a 25% minority stake in Virgin Australia from its owner, US private equity firm Bain Capital.

The two airlines have already had a strong relationship as “codeshare partners” since 2022. Codesharing is where airlines agree to sell seats on each other’s flights. This new announcement, however, is a big step up.

All of this will, of course, be subject to approval from both Australia’s Foreign Investment Review Board and the Australian Competition and Consumer Commission (ACCC). But there could be a range of winners if it goes ahead.

Perhaps most importantly for Australian travellers, the move means Virgin Australia will be able to compete as it once did on long-haul international routes.

This is because a proposed “wet lease” agreement – in which one airline provides full aircraft, crew and relevant services to another – could see Virgin Australia start operating its own flights from Brisbane, Melbourne, Perth and Sydney to Doha as early as mid-2025.

It’s also a win for Bain Capital, which had been trying to offload some of its stake in the airline after acquiring it in crisis in 2020.

So with the prospect of a renewed international foothold for Virgin Australia, could we soon see more competition – and real consumer benefits – on the “Kangaroo Route” between Australia and Europe?