Qatar CEO ‘positive’ on more Australian flights, confirms interest in Virgin Australia stake

The airline is ‘positive’ of landing more flights into Australia as the Gulf carrier confirms interest in a Virgin Australia stake.

Qatar Airways has confirmed its interest in Virgin Australia after months of speculation the Gulf carrier was seeking a stake in the airline as part of expansion plans.

Sharing a stage with Qantas chief executive Vanessa Hudson at an event to mark 25 years of the Oneworld airline alliance in Dubai, Qatar CEO Badr Mohammed Al Meer said Virgin Australia was “a very strong partner” and they were having discussions.

He declined to expand further “at this point” but he indicated his hope to grow operations in the Australian market.

“We continue our communication with the Australian government, and we see it moving in a positive way,” Mr Al Meer said.

“Hopefully in the next few months we’ll get some positive news from Australia, and we look forward to expanding our operations and growing in the Australian market, which will always be to the benefit of the Australian community and passengers.”

Qatar Airways CEO Badr Mohammed Al Meer. Picture: Karim Jaafar/AFP

Virgin Australia’s US private equity owner Bain Capital was believed to be considering a trade sale of part or all of the airline, after abandoning plans for an IPO in 2024.

The public float, which had been expected in May or June this year, was sidelined when two of the key players quit, and it was announced CEO Jayne Hrdlicka would leave the airline.

As a global search for a replacement continued, Ms Hrdlicka remained at the helm of Virgin Australia, and met with Qatar Airways’ leaders in Dubai ahead of the International Air Transport Association AGM on Monday.

Virgin Australia and Qatar first teamed up in 2022 in a partnership intended to compete with the powerful Qantas-Emirates pairing, only to be thwarted by restrictions on Australian services.

Qatar Airways recently renewed its application for additional bilateral air rights to Australia after being knocked back last year in a decision that confounded travellers, the tourism industry, airports and state governments.

It’s understood the airline was again seeking to double present capacity with an extra 28 flights a week, amounting to one extra service a day into Sydney, Melbourne, Brisbane and Perth.

Transport Minister Catherine King previously refused to offer a clear explanation for knocking back Qatar’s application, suggesting only that it was not considered to be in the national interest.

In an effort to gain a better understanding, a Senate inquiry was set up to find answers, focusing on Qantas’ role in lobbying the government over the matter.

After weeks of hearings, the reason remained unclear due to the fact neither Ms King would give evidence, nor former Qantas CEO Alan Joyce.

Months after Qatar Airways was refused more bilateral air rights, the government granted Turkish Airlines capacity of 21 flights a week initially, growing to 35 flights a week by 2025.

Currently, Turkish Airlines was operating just three flights a week, between Melbourne and Istanbul via Singapore.

The IATA AGM heard airline profitability was continuing to improve worldwide in the wake of the Covid pandemic, with the Asia Pacific region recording the strongest growth.

IATA director general Willie Walsh said a record 5 billion people were expected to fly in 2024, with an expected aggregate net profit of $30.5bn.

But he lamented the fact that despite the growth, margins remained thin, with airlines earning just $6.14 a passenger or “barely enough for a coffee in many parts of the world”.

“Strengthening airline profitability and growing financial resilience is important,” said Mr Walsh.

“Profitability enables investments in products to meet the needs of our customers and in the sustainability solutions we will need to achieve net zero carbon emissions by 2050.”

The writer is a guest of IATA in Dubai.

Originally published as Qatar CEO ‘positive’ on more Australian flights, confirms interest in Virgin Australia stake