The Australian Government has approved Qatar Airways Group’s 25% stake in Virgin Australia, paving the way for a strategic partnership between the two airlines.

This landmark deal is expected to inject significant competition into the Australian aviation market, drive down airfares, and provide travellers with greater choice and value.

According to Virgin Australia Group CEO, Jayne Hrdlicka, the partnership marks the beginning of an exciting new chapter for the airline.

“This is a major win for Australian consumers, who are already benefiting from more choice and greater value when travelling to Europe, the Middle East and Africa since our flights went on sale in December. Domestically, we are competing well and performing stronger than at any other point in our 24 year history. Being backed by one of the world’s largest airlines now gives us the scale and access to industry expertise which will support continued growth in line with the market domestically, improve our ability to compete for key segments of the market and add momentum to our margin ambitions.” – Jayne Hrdlicka

As part of the partnership, Virgin Australia will launch long-haul flights from Australia to Doha, Qatar, commencing in June 2025. These flights will operate from Sydney, Brisbane, and Perth, with Melbourne services scheduled to start in December 2025. The flights will be operated using aircraft wet-leased from Qatar Airways.

The partnership will also offer seamless connections to more than 100 destinations across Europe, the Middle East, and Africa, courtesy of Qatar Airways’ extensive global network. This is expected to generate an estimated $3 billion in economic value over the next five years, supporting tourism and jobs growth in Australia.

Qatar Airways Group CEO, Badr Mohammed Al-Meer, said the partnership would create new opportunities for growth, innovation, and sustainability in the Australian aviation market.

“This latest development is a significant step towards solidifying the strong and enduring relationship that continues to evolve between Qatar Airways Group and Virgin Australia. It is also a huge boost to our shared ambition to create even greater choice and value for all Australian passengers, with healthy competition and world-class service at the very core of our collective offering.” – Badr Mohammed Al-Meer

The partnership has also created exciting opportunities for Virgin Australia’s pilot and cabin crew to undertake secondments with Qatar Airways, promoting career development and cultural exchange.

Bain Capital Partner, Mike Murphy, welcomed the partnership, saying it would support Virgin Australia’s long-term success and drive continued growth.

“Virgin Australia has emerged as a strong and profitable company with an attractive market position, a loyal customer base, and an exciting growth trajectory. Now, through our partnership with Qatar Airways, we’re unlocking new areas of cooperation with one of the world’s leading airlines.” – Mike Murphy

The Australian Government’s approval of the partnership has been hailed as a positive outcome for competition, consumers, and jobs growth. The partnership is subject to final regulatory approvals.