What you need to know about Qatar Airways acquiring 25 per cent of Virgin Australia
With Australia approving the major airline deal between Qatar Airways and Virgin Australia, travel could get a lot cheaper. Here’s what you need to know.
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Travellers can expect cheaper international flights as Australia greenlights Qatar Airways’ 25 per cent stake in Virgin Australia, ramping up competition and expanding routes.
The deal will open a way for Virgin to lease planes from the Qatari airline and compete on routes to and from Australia and Doha, beginning in June.
The Australian government needed to approve the move under foreign investment rules, with the tick of approval announced on Thursday morning.
Virgin Australia says entering the market for flights to and from the Middle Eastern hub will push down prices for Aussie travellers.
Here is everything you need to know about the new partnership.
HOW WILL THE QATAR-VIRGIN DEAL WORK?
The deal, expected to lower airfares and boost regional tourism, will introduce 28 new weekly return flights between Doha and major Australian cities.
Flights from Sydney, Brisbane, and Perth to Doha will begin in June, with Melbourne following in December. Tickets have been on sale for months, with Melbourne to Doha offerings will begin in December.
The agreement also includes a secondment program for 60 Australian-based pilots and cabin crew to gain long-haul experience in Doha.
“This is a major win for Australian consumers, who are already benefiting from more choice and greater value when travelling to Europe, the Middle East and Africa since our flights went on sale in December,” Virgin Australia Group CEO Jayne Hrdlicka said.
WHAT DOES THIS MEAN FOR TRAVELLERS?
People stepping off a Virgin Australia flight in Doha will be connected to Qatar Airways’ expansive international routes.
Flight Centre chief executive Graham Turner said the 28 extra flights out of Australia each week will lower airfares for travellers.
“It’s been a long time coming … this is a really good move for international travellers out of Australia for sure,” he told the Today show on Thursday morning.
“It’s a significant number (of flights) … the capacity is quite high and it will certainly make a difference in terms competitiveness and capacity.
“Airfares generally have been pretty reasonably high. They’ve come off a bit recently, but also the capacity – it’s not that easy to get a spare seat these days.”
ARE STAFF CONCERNED?
Concerns had been raised by pilot and cabin crew unions about staff working under less strict Qatari labour laws.
However, Virgin said in a statement: “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 pilot and cabin crew with Qatar Airways.”
“This will also provide promotional opportunities for other team members and new hires through the backfilling of seconded staff.”
TWU National Secretary Michael Kaine said this “final tick-off for the Virgin-Qatar partnership” has a huge potential to build Virgin’s “international footprint and ensure opportunities for workers.”
“TWU members at Virgin were deeply involved in the administration process and extracted commitments to ensure the airline kept its regional and international footprints. We’ve seen Virgin return as a strong second airline and this tie-up will ensure stability into the future,” he said.
“There are still significant concerns around labour standards, and we need to see workers deeply involved in this next phase to see the best outcome out of this partnership.”
WHAT HAPPENS NOW?
The deal will now be subject to International Air Services Commission (IASC) approval.
The IASC has to approve an allocation of air rights for flights between Australia and Qatar.
A Virgin spokesperson said this international commission submission was uncontested.
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Originally published as What you need to know about Qatar Airways acquiring 25 per cent of Virgin Australia
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