Virgin Australia and Qatar Airways are taking their existing partnership to the next level with the announcement that the Middle East carrier intends to acquire a minority stake in the Aussie airline. If successfully concluded, the deal will see Virgin Australia operate widebody jets once again and offer more connecting options to Australian travelers to several global destinations, among other benefits.

Qatar Airways interested in 25% stake in Virgin Australia

Virgin Australia has announced that Qatar Airways wants to acquire a minority 25% equity stake in the Australian carrier to strengthen their existing partnership further. The two airlines came together in 2022 by launching a codeshare agreement that offered passengers access to both airlines’ networks, lounges, and loyalty programs.

Photo: Virgin Australia

Virgin Australia Group CEO Jayne Hrdlicka commented,

“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.”

Gradual re-entry into widebody flights

A significant development from this deal would be the re-introduction of widebody planes into Virgin Australia’s fleet, albeit through a wet lease arrangement. The Qatar Airways Group is interested in bringing more traffic to Doha through this arrangement from popular Australian destinations, such as Sydney, Melbourne, Brisbane, and Perth.

These wet-lease services are expected to commence in 2025 and would unlock more than 100 new connecting itineraries across Europe, the Middle East, and Africa for Australian travelers through Qatar Airways’ hub at Hamad International Airport.

Photo: Fasttailwind | Shutterstock

Of course, Virgin Australia is no stranger to long-haul international flying, having previously operated aircraft such as the Airbus A330s and the Boeing 777s to destinations as far as the West Coast of the United States.

However, the COVID-19 pandemic forced the carrier to retire its widebody aircraft, and today, it operates an all-Boeing 737 fleet. Even now, it offers services to destinations as far as Tokyo Haneda from Cairns using its 737 MAX aircraft—a flight that takes over seven hours. However, due to low demand, this route will be axed from Virgin’s network in February 2025.

More competition

This announcement comes about a year after the Australian government refused to grant Qatar Airways more access into the country and rejected its request for additional flights.

If approved, the deal between Virgin Australia and Qatar Airways will likely shake things up and could challenge Qantas’ existing dominance to some extent, particularly in an environment in which two other Australian airlines – Bonza and Rex – went into administration this year. Qantas, which has recently seen a dip in public perception, is often viewed as being mollycoddled by the Australian government. Qatar Airways Group CEO Eng. Badr Mohammed Al-Meer commented,

“…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.”

Photo: Virgin Australia

Subject to regulatory approval, the deal between Virgin and Qatar Airways is expected to offer Australian passengers more flexible schedules and frequencies, increased opportunities to earn and redeem points for members of Velocity and Qatar Airways’ Privilege Club, and lucrative fares for leisure travelers.