The Australian Foreign Investment Review Board has approved a proposal by Qatar Airways (QR, Doha Hamad International) to buy a 25% stake in Virgin Australia (VA, Brisbane International). The government confirmed the approval on February 27, 2025, saying the acquisition and cooperation between the two airlines would offer passengers more choices, put downward pressure on airfares, and benefit the broader economy.
“The proposal will deliver more flights for Australians and strengthen competition in the aviation sector,” said Treasurer Jim Chalmers, who signed off on the FIRB's recommendation.
While the FIRB green light concerns the investment component, the Australian Competition and Consumer Commission (ACCC) is yet to deliver final authorisation on the competitive aspects of the deal. However, the ACCC has already given interim approval and is expected to give final approval by the end of April.
Aside from the fresh funding, Virgin Australia will start wet leasing B777-300ERs from Qatar Airways and begin running daily flights to Doha from Sydney Kingsford Smith, Melbourne Airport, Brisbane International, and Perth International. The first of these flights will start in June. Virgin Australia is also awaiting approval from the International Air Services Commission on what is an uncontested allocation of traffic rights for services between Australia and Qatar.
"Qatar Airways’ investment is a huge vote of confidence in our business and Australian aviation more broadly," said Virgin Australia CEO Jayne Hrdlicka. "It sets us up for long-term success and adds fuel to our bold transformation agenda.”
"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," she added.
“We are confident in our ability to deliver an alliance between our two airlines that will provide immense benefit to customers, Australian businesses, Australian jobs and the wider economy,” said Qatar Airways CEO Badr Mohammed Al-Meer.
Bain Capital will remain the majority shareholder in Virgin Australia. Other shareholders include Virgin Group and the Queensland Investment Corporation.
