In a major development for Australian aviation, Qatar Airways Group has announced its intention to acquire a 25% minority stake in Virgin Australia, subject to regulatory approval.
This strategic investment is set to strengthen the partnership between the two airlines, bringing a host of benefits to travellers, including more competitive fares, expanded international routes, and improved frequent flyer perks.
More Choice and Greater Value for Australian Travellers
A key benefit of this partnership will be increased competition in the Australian aviation market. Virgin Australia will now be positioned to enhance its international offerings, giving Australian consumers more choice and better value.
The Qatar Airways investment will support Virgin Australia in navigating the inherent volatility of the aviation sector, ensuring the airline can offer more affordable fares and improved services.
Virgin Australia’s CEO, Jayne Hrdlicka, stressed the significance of this investment for consumers. “This partnership brings the missing piece to Virgin Australia’s longer-term strategy and is a huge vote of confidence in Australian aviation,” she said. “It will further strengthen Virgin Australia’s ability to compete over the long term, which will inevitably translate into more choice and even better value airfares for consumers as well as additional Australian aviation jobs.”
New Long-Haul Routes to Begin in 2025
One of the most anticipated benefits for travellers is the introduction of new long-haul flights. Beginning in mid-2025, Virgin Australia plans to launch routes from major Australian cities—Brisbane, Sydney, Melbourne, and Perth—to Doha, Qatar Airways’ home base. These new routes will open up access to Qatar Airways’ extensive global network, which includes over 100 destinations across Europe, the Middle East, and Africa.
Virgin Australia’s planned wet lease arrangement (a type of leasing arrangement in aviation where one airline (Qatar) provides another airline (Virgin) with an aircraft, along with a complete crew and maintenance) will allow the airline to assess the viability of these long-haul services, ensuring that the new offerings meet consumer demand while delivering sustainable growth.
Enhanced Frequent Flyer Benefits and Expanded Code-Sharing
Frequent travellers stand to benefit from the expanded partnership between Virgin Australia’s Velocity program and Qatar Airways’ Privilege Club.
The collaboration will offer passengers more opportunities to earn and redeem points, as well as access to a greater range of destinations and improved schedule options.
The increased synergy between the two airlines’ loyalty programs will hopefully make it easier for Australian travellers to maximize the value of their frequent flyer points on international journeys.
The deeper code-sharing agreement between Virgin Australia and Qatar Airways will also improve connectivity, offering Australian passengers more frequent flights and greater flexibility when planning their trips.
Small and medium-sized enterprises, corporate clients, and leisure travellers alike will benefit from these expanded options, as they gain access to a wider range of competitive fare options and flight schedules tailored to their needs.
Looking Ahead
As Virgin Australia prepares for its long-anticipated return to public ownership, the equity investment from Qatar Airways is expected to be a cornerstone of the airline’s strategic growth.
The move, which is still subject to regulatory approval, marks a significant milestone for Virgin Australia as it rebuilds following its post-pandemic recovery.