The partnership between Virgin Australia and Qatar Airways is set to strengthen with Qatar Airways Group's announcement of plans to acquire a 25% minority equity stake in Virgin Australia from Bain Capital, pending approval from the Foreign Investment Review Board (FIRB). Qatar Airways was recently recognized as the world’s best airline by AirlineRatings.com

This strategic investment will enhance competition in Australian aviation, providing consumers with better value airfares and more travel options. As a global leader in aviation, Qatar Airways will bring its expertise to support Virgin Australia through the volatile industry environment.

Subject to ACCC approval, this partnership will expand cooperation between the two airlines, enabling Virgin Australia to launch flights from Brisbane, Melbourne, Perth, and Sydney to Doha, connecting passengers seamlessly to Qatar Airways’ global network. This will introduce more than 100 new itineraries across Europe, the Middle East, and Africa for Australian travelers. The wet lease services, starting in mid-2025, will allow Virgin Australia to explore the viability of long-haul, wide-body aircraft operations, enhancing competition in long-distance travel.

The collaboration will expand codeshare agreements, providing travelers with greater access to international destinations, improved schedules, more frequent flights, and enhanced loyalty program benefits for Velocity and Qatar Airways’ Privilege Club members. The partnership will also support economic growth and job creation, not just in Virgin Australia but across the broader aviation and tourism sectors in Australia. Sustainability, particularly the development of Sustainable Aviation Fuel (SAF), will be a key focus, with potential collaboration as Western Sydney Airport and its economic ecosystem are developed.

Virgin Australia CEO Jayne Hrdlicka described the partnership as a critical step in the airline's long-term strategy, bolstering its ability to compete and offering consumers more affordable travel options. She emphasized that Qatar Airways’ investment brings vital scale and expertise, while long-haul services to Doha are projected to bring an estimated A$3 billion in economic benefits over five years, including increased freight capacity for Australian exports.

Hrdlicka expressed excitement about expanding the airlines' relationship into new areas, including sustainability initiatives and the development of Western Sydney’s aviation ecosystem. She highlighted Virgin Australia’s commitment to decarbonization and its participation in the Federal Government’s Jet Zero Council, noting that this partnership aligns with the government’s Future Made in Australia agenda.

Qatar Airways Group CEO Eng. Badr Mohammed Al-Meer shared his enthusiasm for the investment, emphasizing the alignment between the two airlines and their collective goal to enhance service and value for Australian passengers. He also highlighted the positive impact this partnership will have on competition, jobs, and the broader Australian economy.

Bain Capital Partner Mike Murphy commended Virgin Australia’s turnaround over the past four years, crediting the team’s dedication in revitalizing the airline after a decade of losses. He welcomed Qatar Airways Group as a partner to build on Virgin Australia's solid foundation and future growth trajectory.

Virgin Group and Queensland Investment Corporation (QIC) will retain their shareholdings in Virgin Australia.