Qatar Airways’ long-awaited purchase of a 25% minority stake in Australian low-cost carrier Virgin Australia has finally been given the green light by the Australian Government’s Foreign Investment Review Board (FIRB). The approval was granted by way of a Federal Treasurer’s announcement made on February 27, 2025, and follows a determination by the Australian Competition and Consumer Commission (ACCC) indicating its intention to permit the investment to go ahead earlier in the month.
The investment by Qatar Airways in Australia’s second-largest carrier and the country’s busiest on domestic routes is now expected to receive the final regulatory approval it requires in late March or early April 2025, according to ACCC sources, with no other regulatory hurdles to overcome. Virgin owners Bain Capital, together with Virgin Group and the Queensland Investment Corporation, will each retain their current shareholdings in Virgin Australia following the Qatar Airways investment.
Virgin Australia chief Jayne Hrdlicka welcomed the deal receiving the regulatory green light and hailed the announcement as the start of a “new era for the airline”. “Qatar Airways’ investment is a huge vote of confidence in our business and Australian aviation more broadly. It sets us up for long-term success and adds fuel to our bold transformation agenda,” she said.
The alliance between the two carriers is expected to pave the way for a return of Virgin Australia to long-haul international services. The airlines have already agreed a codeshare deal on flights between Doha in Qatar and points in Australia, which is now just awaiting a decision from the International Air Services Commission (IASC) on an uncontested allocation of air rights for services between Australia and Qatar, which is set to commence in June 2025.
Subject to receiving IASC approval, Virgin Australia has previously said it will resume long-haul services operating flights from Sydney, Brisbane, and Perth to Doha, while flights from Melbourne to Doha are scheduled to commence in late 2025. All flights will be operated using widebody Boeing 777-300ER aircraft wet-leased from Qatar Airways. Ironically, this is a type that Virgin Australia operated several years ago on flights between the Australian East Coast and the US before the airline went into administration and the aircraft were disposed of.
The pairing of cash-rich Qatar Airways and the resurgent Virgin Australia is expected to enhance competition on international routes from Australia and positively impact international airfare by driving them downwards. Equally, the new international codeshare services are expected to significantly benefit the Australian tourism economy by generating an estimated AUS$3 billion ($3.3bn) in economic value between 2025 and 2030.
Other opportunities await
Alongside the various commercial opportunities afforded by the new codeshare alliance, the partners are also expecting various developments for their staff, with Virgin Australia employees likely to be the first to benefit.
“Following consultation with unions and relevant cabin crew and pilot communities, there has been an overwhelming response to the expressions of interest for secondment opportunities for Virgin Australia pilots and cabin crew with Qatar Airways,” said a Virgin Australia statement. “This will also provide promotional opportunities for other team members and new hires through the backfilling of seconded staff,” the statement added.
Qatar first announced an intention to acquire a 25% stake in Virgin Australia in October 2025 for an undisclosed sum. At the time, the Doha-based carrier stated that the deal would provide Virgin Australia with “access to the critical scale and expertise of a world-leading global airline”.
