The national carrier may be set on a minority stake just weeks after acquiring 25% in South Africa’s Airlink.

Qatar Airways may be close to acquiring a 20% stake in Virgin Australia Airlines (VA), according to reports from Australian Financial Review, which had first reported the airline’s interest in June 2024.

Although the deal will need to be brought to Australia’s Foreign Investment Review Board, VA’s private equity owner, Bain Capital, would still retain its majority stake. 

Bain Capital became VA’s saving grace when the investment giant bought the airline for $2.45 billion in 2020 as VA grazed bankruptcy.

This could mean a seismic shift in Australia’s domestic airline industry. According to a report from Australia’s Competition and Consumer Commission on Domestic airline competition, Qantas, and its budget subsidiary Jetstar, boast a combined 63% of passenger market share as of June 2024. VA held 32%. 

Airlines have been grasping for greater market share in Australia. Qatar Airways currently has a codeshare agreement with VA. A stake in the Australian airline could allow Qatar Airways more room in Australia’s aviation landscape against dominant Qantas. 

Qatar Airways has declined Doha News’ request for comments.

Qatar’s bid to increase its national airline’s flights in major Australian cities such as Melbourne, Sydney, Brisbane, and Perth was blocked last year by Labor, citing ‘national interests’ as the reason. Qatar Airways had planned for an additional 28 weekly flights. 

On August 19, Qatar Airways had announced its most recent investment when it acquired a 25% stake in South Africa’s premier independent regional carrier, Airlink. 

According to the airline, the agreement came as an alignment of both carriers’ loyalty programs, Qatar Airways Privilege Club and Airlink Skybucks.

The state-owned airline boasts a diverse investment portfolio in foreign airlines and airports. 

In 2015, Qatar Airways bought 9.99% of British-Spanish multinational airline holding company International Airlines Group. As of February 2020, it holds 25.1% of shares.

Qatar Airways Group acquired a 60% stake in Rwanda’s Bugesera International Airport in 2019. A year later, it sought out a 49% stake in the East African nation’s flag carrier airline, RwandAir.

The gulf carrier is also a minority shareholding in American jet carrier JetSuiteX and have invested a 10% in LATAM Airlines Group S.A. Qatar Airways also owns a 9.99% stake in Hong Kong flag carrier Cathay Pacific.

Operating from its hub at Hamad International Airport in Doha, Qatar Airways serves nearly 170 destinations worldwide. The airport has won the World’s Best Airport title by Skytrax in 2021, 2022, and 2024.