Australia's Treasurer Jim Chalmers has approved Qatar Airways acquisition of a 25% stake in Virgin Airlines, from United States private equity firm Bain Capital.
The deal has passed all regulatory requirements with Chalmers approving the proposal this morning on the advice of the Foreign Investment Review Board, adding the deal would deliver more international flights and support jobs.
The Treasurer said the deal's approval included legally enforceable conditions, such as Australian representation on Virgin’s board, long-haul flight training of Australian pilots and cabin crews in Doha, and protection of its customer data.
“The CEOs of Virgin Australia and Qatar Airways have written to me with assurances that this investment will create employment benefits and job growth opportunities for Australians,” said Chalmers.
Federal approval comes a week after the Australian Competition and Consumer Commission (ACCC) backed the planned alliance between Virgin Australia and Qatar Airways, the deal would provide air travellers with improved services and products.
In October 2024, the Middle Eastern carrier proposed purchasing a minority stake in Virgin for an undisclosed amount, with intention to commence “wet lease” services to Doha, boosting capacity between Australia and Europe by mid-2025.
A ‘wet lease’ is a process whereby one airline loans aircraft, crew and maintenance to another carrier.
This original proposal came a year after the Federal government denied Qatar Airways' requests to fly additional services to Australia's major airports - Sydney, Melbourne, Brisbane and Perth.
The deal is still to get its final approval from the International Air Services Commission and still needs to decide to grant Virgin the air right but it is expected to come in March or April.
Indications from the government and ACCC so far have echoed Virgin Australia’s CEO, Jayne Hrdlicka, who said “today is an incredibly proud day for everyone” at the airline.
“We welcome a new era for Virgin Australia. Qatar Airways’ investment is a huge vote of confidence in our business and Australian aviation more broadly,” said Hrdlicka
“It sets us up for long-term success and adds fuel to our bold transformation agenda.”
Qantas CEO Vanessa Hudson spoke at a press conference in Melbourne this morning to announce the company's latest financial results, saying they were unpinned by a "continued strong appetite for demand" for both premium and low-cost travel".
Hudson said she welcomed the competition of the Qatar-Virgin deal, adding that the government's guidance around the wet lease was "a balanced outcome".
"We said we weren't going to oppose the result so from the outset that's been our position and the outcome today was expected. Our focus is about looking after our customers."
Related content
