Australia Welcomes Qatar Airways' Stake in Virgin Australia

The Australian government has approved Qatar Airways' acquisition of a 25% stake in Virgin Australia, subject to certain conditions. This strategic investment aligns with the government's long-term economic and aviation sector strategies, as it is expected to drive increased competition, create jobs, and strengthen the aviation sector. The approval follows a draft determination by the Australian Competition and Consumer Commission (ACCC) that the alliance poses little threat to competition and is likely to increase choices for travellers.

The integrated alliance between Virgin Australia and Qatar Airways will lead to 28 new weekly return services between Doha and Perth, Brisbane, Sydney, and Melbourne. This increased connectivity will stimulate tourism, job creation, and better freight export options, generating an estimated economic benefit of ~A$3bn to the Australian economy over the next five years. The alliance will also provide additional consumer benefits, including increased earn and redemption opportunities between Velocity and Qatar Airways' Privilege Club, as well as expanded code sharing arrangements and improved schedule and connectivity options.

The approval of Qatar Airways' 25% stake in Virgin Australia is a significant vote of confidence in Virgin Australia and Australian aviation. It cements a deeper strategic partnership that will strengthen competition in Australia's skies, creating more choice and better value for Australians. The investment will provide access to scale and synergy benefits, further strengthening Virgin Australia's financial resilience and underpinning the company's continued strategic growth. It also enables a measured entry into long-haul international flying by mid-2025, with significant flow-on benefits for Australian travellers and the Australian economy.

The deepened partnership has the potential to underpin significant jobs and economic growth, not just in Virgin Australia but across both the broader aviation and tourism sectors in Australia. An important area of future focus is sustainability, including the development of Sustainable Aviation Fuel. The partnership also comes at a great time to explore opportunities as the new Western Sydney Airport and its economic ecosystem are developed.

In conclusion, the approval of Qatar Airways' 25% stake in Virgin Australia is a strategic move that aligns with the Australian government's long-term economic and aviation sector strategies. The alliance will drive increased competition, create jobs, and strengthen the aviation sector, ultimately benefiting both consumers and the broader economy.