Qatar Airways ‘to take a 20pc stake in Virgin Australia’

Qatar Airways is reportedly about to take a 20 per cent stake in Virgin Australia as the Gulf-based carrier expands its global reach.

Virgin Australia originally sought to team up with Qatar Airways in 2022.

Qatar Airways is reportedly preparing to take a 20 per cent stake in Virgin Australia as part of an international expansion plan by the Gulf carrier.

The deal, which could be unveiled as early as next week, comes as Virgin Australia’s US private equity owner, Bain Capital, pushes 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 chief executive Jayne Hrdlicka would leave the airline. Virgin is expected to announced a new CEO within weeks.

Qatar’s interest surfaced this month when Qatar chief executive Badr Mohammed Al Meer said Virgin Australia was “a very strong partner” and the airlines were having discussions about a tie up. 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.”

Both Bain Capital and Qatar Airways yesterday declined to comment. Any investment by Qatar would need approval from the Foreign Investment Review Board.

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.

Qatar Airways is believe to be reapplying to increase the number of flights it makes in and out of Australia.

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.

Federal Transport Minister Catherine King previously refused to explain her decision to reject Qatar’s application, saying only that it was not considered to be in the national interest.

Qatar Airways this week reclaimed the title of world’s best airline from Singapore, as Qantas tumbled out of the top 20 in the annual Skytrax awards.

Regarded as the “Oscars of the aviation industry” the Skytrax awards are based on hundreds of thousands of passenger surveys and are funded by the organisers to ensure independence.

As well as claiming best airline, Qatar Airways won best business class for its QSuites product, and best business class lounge.