Just weeks after acquiring 25% of South Africa’s Airlink, the national airline may be preparing to take a minority stake.
According to Australian Financial Review, Qatar Airways may be on the verge of acquiring a 20% share in Virgin Australia Airlines (VA). The airline’s interest was initially revealed in June 2024.
Although the transaction will need to be approved by Australia’s Foreign Investment Review Board, Bain Capital, VA’s private equity owner, will retain a majority interest.
Bain Capital became VA’s saving grace when the financial firm purchased the airline for $2.45 billion in 2020, just as the company was about to declare bankruptcy.
This might represent a seismic shift in Australia’s domestic aviation business. According to a report by Australia’s Competition and Consumer Commission on domestic airline competition, Qantas
As of June 2024, the company and its budget affiliate Jetstar had a combined passenger market share of 63%. VA held 32%. Airlines have been vying for more market share in Australia. Qatar Airways currently has a codeshare arrangement with VA. A stake in the Australian airline might give Qatar Airways additional negotiating power in Australia’s aviation sector, competing with dominant Qantas.
Qatar Airways did not respond to a Doha News query.
Last year, Labour opposed Qatar’s proposal to increase its national airline’s flights to major Australian cities including as Melbourne, Sydney, Brisbane, and Perth, claiming ‘national interests’. Qatar Airways has planned an additional 28 weekly flights.
On August 19, Qatar Airways announced its most recent investment by acquiring
a 25% share in Airlink, South Africa’s leading independent regional carrier. According to the airline, the deal resulted from an alignment of both carriers’ reward programs, Qatar Airways Privilege Club and Airlink Skybucks.
The state-owned airline has a wide investment portfolio, including overseas airlines and airports.
In 2015, Qatar Airways acquired 9.99% of the British-Spanish multinational airline holding firm International Airlines Group. As of February 2020, it possessed 25.1% of the shares.
Qatar Airways Group bought a 60% stake in Rwanda’s Bugesera International Airport in 2019. A year later, it wanted a 49% interest in Rwanda’s flag carrier, RwandAir.
The Gulf carrier also owns a minority stake in American jet carrier JetSuiteX and has invested 10% in LATAM Airlines Group S.A. Qatar Airways also holds a 9.99% interest in Hong Kong’s flag carrier Cathay Pacific.
Qatar Airways operates from its hub at Doha’s Hamad International Airport, serving almost 170 destinations globally. Skytrax named the airport the World’s Best Airport in 2021, 2022, and 2024, respectively.
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