Major international air carrier Qatar Airways has revealed it intends to acquire a minority 25 per cent stake in Virgin Australia from Bain Capital.
Qatar Airways says it expects to see more benefits in Australia through an increased freight capacity, with Qatar Airways deepening its strategic relationship with Virgin Australia.
Alongside allowing Australian customers better value airfares and greater choice, the acquisition will also allow the pair to provide improved freight capacity around the globe.
Virgin Australia will use the cooperation to launch flights from Brisbane, Melbourne, Perth and Sydney to Doha, connecting into Qatar Airways’ global network.
Virgin Australia Group CEO Jayne Hrdlicka says the partnership brings “the missing piece” to Virgin Australia’s longer-term strategy.
“Importantly, 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,” Hrdlicka says.
“We’re estimated to generate an economic benefit of roughly $3 billion to the Australian economy, with additional benefits to flow from increased freight capacity, supporting Australia’s high-value exports to markets such as the Middle East and Europe.”
Qatar Airways group CEO Eng. Badr Mohammed Al-Meer says the brand is pleased to announce its proposed strategic investment in Virgin Australia.
“The alignment of our two airlines is significant, the relationships are deep, and we could not be more proud to bring even more great value and choice to all Australians,” Al-Meer says.
“The investment further demonstrates our strategic alignment with Virgin Australia and our collective ambition to deliver the best possible service and value to Australian passengers.
“Not only that, we believe competition in aviation is a good thing and it helps raise the bar, ultimately benefiting customers. This agreement will also help support Australian jobs, businesses and the wider economy.”
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