Qatar Airways is acquiring a 25% stake in Virgin Australia, launching new Doha routes and strengthening ties for expanded international connectivity by mid-2025.
Qatar Airways is set to acquire a 25% stake in Virgin Australia Airlines Pty, marking a strategic investment that strengthens ties between the two airlines. This move will also see Virgin Australia launch direct flights to Doha, enabling the carrier to tap into Qatar Airways’ extensive global network. The new long-haul routes are expected to commence by mid-2025, offering travelers greater connectivity between Australia and the Middle East.
The deal, which is subject to regulatory approval, comes as Qatar Airways aims to enhance its presence in Australia’s competitive aviation market. This move follows Qatar’s unsuccessful bid to secure additional flight rights into Australia last year, a decision the airline criticized as unfair. Virgin Australia, which currently holds 31% of the domestic market, will offer Qatar Airways access to the region through a revived international network.
Under the terms of the agreement, Virgin Australia will introduce flights from Brisbane, Melbourne, Perth, and Sydney to Doha. The expansion signals a new chapter for Virgin, which had previously ceased long-haul flights after filing for bankruptcy during the pandemic. The airline was rescued by Bain Capital in 2020, which wiped out much of its unsecured debt. Qatar Airways’ investment now positions Virgin Australia for a strong recovery, especially with the airline’s expected public listing in the near future. Bain Capital, which postponed an initial public offering (IPO) in 2022, had anticipated the airline’s valuation to reach around A$2.5 billion ($1.7 billion).
Qatar Airways’ growing portfolio of global equity stakes aligns with its broader expansion strategy. The Doha-based carrier has already secured investments in several international airlines, including a 25% stake in South Africa’s SA Airlink Pty and a pending acquisition of 49% of Rwanda’s RwandAir. Qatar Airways is also the largest shareholder in British Airways’ parent company IAG SA and holds stakes in both Cathay Pacific Airways Ltd. and Latam Airlines Group SA.
Virgin Australia’s existing shareholders, including Virgin Group and Queensland Investment Corp., will retain their stakes, according to the joint statement released by both companies.
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