Virgin Australia has announced that Qatar Airways intends to acquire a 25 percent minority stake in the Australian carrier, enabling a measured entry into long-haul flying by mid-2025, and additional consumer benefits.
On Tuesday (October 1st, 2024), Virgin Australia announced that Qatar Airways intends to acquire a 25 percent minority stake in the company from Bain Capital, subject to regulatory approval. This marks the start of a deeper strategic relationship between the airlines, and Qatar Airways will drive increased competition in the Australian market, including new long-haul flying for Virgin customers from mid-2025. This minority stake also serves as cornerstone investment prior to the anticipated return of Virgin Australia to public ownership.
In Tuesday’s announcement, Virgin Australia Group’s CEO, Jayne Hrdlicka, said,
“This partnership brings the missing piece to Virgin Australia’s longer-term strategy and is a huge vote of confidence in Australian aviation. Importantly, it will further strengthen Virgin Australia’s ability to compete over the long term, which will inevitably translate into more choice and even better value airfares for consumers as well as additional Australian aviation jobs.
“Qatar Airways has been a valued codeshare partner of Virgin Australia since 2022. This investment by the world’s best airline will deepen an already strong partnership by bringing critical scale and the best industry expertise to support our long-term competitiveness and growth.
“This proposed investment is subject to regulatory approval. We do not take this for granted and have made submissions outlining the benefits of the transaction for Australian aviation, Australian travellers and the Australian economy.
“I am delighted that our closer relationship allows us to put our ‘toe in the water’ regarding long-haul international, as well as the ability to deepen other areas of existing cooperation, including between our respective loyalty programs and code sharing arrangements.
“Sustainable Aviation Fuel will play a critical role in aviation’s long-term decarbonisation effort. Virgin Australia has been an active participant in the Federal Government’s Jet Zero Council, and we expect our partnership with Qatar Airways to support SAF opportunities in a manner consistent with the Federal Government’s Future Made in Australia agenda.
“Both airlines are thrilled by the opportunity to work together more closely, which will bring significant benefits to Australian travellers and the economy.
“I am super proud of the entire team at Virgin Australia. Together they have done a wonderful job getting Virgin Australia back into a healthy, long term competitive position that has attracted the world's best airline as a prospective investor. Every member of our team has contributed to this terrific outcome.”
Also commenting on the proposed investment in Virgin Australia, Qatar Airways Group’s CEO, Eng. Badr Mohammed Al-Meer, said,
“We are really pleased to be announcing our proposed strategic investment in Virgin Australia today. The alignment of our two airlines is significant, the relationships are deep, and we could not be more proud to bring even more great value and choice to all Australians. The investment further demonstrates our strategic alignment with Virgin Australia and our collective ambition to deliver the best possible service and value to Australian passengers.
“Not only that, we believe competition in aviation is a good thing and it helps raise the bar, ultimately benefiting customers. This agreement will also help support Australian jobs, businesses and the wider economy.”
Bain Capital Partner, Mike Murphy, added,
“Virgin Australia plays a pivotal role in connecting Australians with each other, and with the world. Over the past four years, we've had the privilege of working alongside a team that has shown the dedication and tenacity needed to revitalise the airline. After a decade of losses resulting in administration, Virgin Australia has emerged as a strong and profitable company with an attractive market position, a loyal customer base, and a promising growth trajectory. We are pleased to welcome Qatar Airways Group as a partner at this stage to build on Virgin Australia’s strong foundation.”
Subject to regulatory approval, Qatar Airways Group’s equity investment will enable Virgin Australia to launch flights from Brisbane, Melbourne, Perth and Sydney to Doha, allowing guests to seamlessly connect to Qatar Airways’ global network. The added flights will open over 100 new connecting itineraries across Europe, the Middle East and Africa for Australian travelers. The proposed wet-lease services will start in mid-2025, allowing Virgin Australia to assess the viability of widebody aircraft flying, while providing Australians with greater local competition for long-haul flying. Additionally, the expanded codeshare collaboration will provide increased earning and redemption opportunities for members of Virgin’s Velocity Frequent Flyer and Qatar Airways’ Privilege Club members.
Source: Virgin Australia
To our valued readers: We have decided to enhance our visitor experience by eliminating user-targeted ads across our platform (excluding select static display ads). In order to make up for lost revenue, we are transitioning to a reader supported model, without a paywall, annoying pop-ups, or a required subscription. We thank you for your generous support!
Comentarios