Qatar Airways is set to acquire a 25% stake in Virgin Australia from US private equity firm Bain Capital, marking a significant move in the Australian aviation market. The deal, for an undisclosed amount, will intensify competition for Qantas Airways, which has long dominated the country’s domestic routes and lobbied against allowing further access to Qatar Airways.
The sale, which still requires approval from the Australian government, positions Virgin Australia to strengthen its competitive edge. Virgin CEO Jayne Hrdlicka described the partnership as “the missing piece” in the airline’s long-term strategy, adding that Qatar Airways brings vital scale and expertise that will help Virgin better compete domestically.
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The deal also comes ahead of a potential initial public offering (IPO) for Virgin Australia, which Bain Capital acquired for A$3.5 billion in 2020 after it entered voluntary administration. The IPO plans, targeting a valuation of A$1 billion, were delayed last year.
As part of the agreement, Virgin Australia plans to launch flights from Brisbane, Melbourne, Perth, and Sydney to Doha by mid-2025, pending regulatory approval. This would allow Qatar Airways to expand its operations in Australia, regardless of the government’s previous denial of additional flying rights for the Qatari carrier.