Qatar Airways seeking 25% stake in Virgin Australia

Qatar Airways seeking 25% stake in Virgin Australia

Under the plan, Qatar Airways would take a minority stake in Virgin for an undisclosed sum
Under the plan, Qatar Airways would take a minority stake in Virgin for an undisclosed sum. Photo: Odd ANDERSEN / AFP/File
Source: AFP

Qatar Airways unveiled a bid to take a 25 percent stake in troubled airline Virgin Australia on Tuesday, a deal that could shake up Australia's Qantas-dominated market.

The airlines, along with Virgin owner Bain Capital, announced details of the proposed agreement, which had long been rumoured, before markets opened in Sydney.

Under the plan, Qatar would take a minority stake in Virgin for an undisclosed sum.

The firms said it would spell more direct flights from Brisbane, Melbourne, Perth, and Sydney to Doha, which would better link Australia with Europe and elsewhere.

That could significantly shake up Australia's air travel market which is currently dominated by Qantas, a pseudo-flag carrier beset by allegations of price gouging and deliberate overbooking.

"This will ensure Australian consumers have access to even better value airfares and greater choice" the companies said in a joint statement.

Read also

Officials see no shortages from likely US port strike

The deal could also pave the way for Virgin to relist on the stock market. However, it will be subject to regulatory approval and fierce political debate.

Political clout

Qantas has previously helped scupper plans for Qatar to provide more flights from Australia.

Qantas -- along with its low-cost brand Jetstar -- has a more than 61 percent share of the domestic air market and has strong political clout.

In 2023, Australia's centre-left government rejected Qatar's bid to put on 21 extra international flights to and from Australia.

Political opponents accused the government of trying to shield Australian carrier Qantas from competition despite its record profits, resulting in high fares for international flights.

Qatar Airways CEO Badr Mohammed Al-Meer said the proposed Qatar-Virgin tie-up would be good for Australians.

Read also

New blow for UK's Starmer as growth data disappoints

"We believe competition in aviation is a good thing and it helps raise the bar, ultimately benefiting customers" he said. "This agreement will also help support Australian jobs, businesses and the wider economy."

New feature: Сheck out news that is picked for YOU ➡️ click on “Recommended for you” and enjoy!

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.