Qatar Airways will take a 25% stake in Virgin Australia as Bain Capital plans an IPO for Australia’s number two carrier.
The Australian government has protected Qantas, keeping airfares high and options limited for Australians, by blocking growth of flights by Qatar Airways. This gives Qatar a stronger foothold into the Australian market.
Virgin Australia has had a number of foreign airlines with significant stakes over the years – including Etihad, Singapore Airlines, Air New Zealand and Hainan Airlines’ HNA Group. Meanwhile, Qatar Airways owns stakes in IAG (British Airways, Iberia, Aer Lingus and Vueling), Cathay Pacific, LATAM and China Southern.
Together Virgin Australia and Qantas control over 90% of the Australian market. Meanwhile, Delta Air Lines partner Rex has failed in its attempt to take them on. Qatar’s stake remains subject to Australian government approval.
