Virgin Australia and Qatar Airways stake cleared for take-off

Virgin Australia and Qatar Airways have received the green light for a deeper strategic partnership following approval from Australia’s Foreign Investment Review Board and the Federal Treasurer. Earlier in 2025, the ACCC also granted interim approval for their integrated alliance to proceed for five years.

Under the deal, Qatar Airways Group will take out a minority 25% stake in Virgin Australia. The collaboration will also see Virgin Australia resuming long-haul flights to Doha (subject to IASC approval), with the first routes set to take off in June 2025. These flights – run as a wet lease with Qatar Airways planes and crew – will initially connect Sydney, Brisbane, and Perth with Doha, followed by Melbourne later in the year.

Virgin’s in it for the long haul

Virgin Australia will also offer secondment opportunities with Qatar Airways for around 20 pilots and 40 cabin crew to be based in Doha later this year. Virgin Australia Group CEO Jayne Hrdlicka mentions that there is an ‘extraordinary response’ to the expressions of interest.

Commenting more broadly on the partnership, she says the approval is a ‘major win for Australian consumers.’

“Today we welcome a new era for Virgin Australia. Qatar Airways’ investment is a huge vote of confidence in our business and Australian aviation more broadly. It sets us up for long-term success and adds fuel to our bold transformation agenda.”

“Being backed by one of the world’s largest airlines now gives us the scale and access to industry expertise which will support continued growth in line with the market domestically, improve our ability to compete for key segments of the market and add momentum to our margin ambitions.”

Over at the Qantas Half-Year Results briefing, Qantas Group CEO Vanessa Hudson welcomes the upcoming competition. Speaking to Point Hacks and other media, she is ‘really confident’ that Qantas will hold its own against Virgin Australia and Qatar Airways.

“We look forward with positivity in terms of the outcome. I think that the announcement today that the government has made in terms of putting some guidelines around a three-year wet lease… that’s a balanced outcome. We’re looking forward to the future, and we’re absolutely welcoming of the competition.”

“Having more competition actually makes us better and we’re focused on delivering for our customers and investing in our aircraft and investing in our people.”

How will Australians benefit?

Federal Treasurer Jim Chalmers says the deal underwent cross-government consultation and is in Australia’s national interests. Virgin Australia indicates that the agreement will put ‘downward pressure’ on fares and offer Australian consumers ‘more choice and greater value’ when travelling to Europe, the Middle East and Africa.

The approval also comes with enforceable safeguards, including backfilling the roles vacated by the secondment, maintaining Australian representation of Virgin’s board and protection of customer data.

Virgin Australia is also committed to ‘exploring’ dry lease options within three years, where it would lease aircraft but use its Australian-based crew to operate the flights. There’s no guarantee the airline would make the switch in that timeframe, but it’s a step in the right direction towards Virgin Australia truly operating its own long-haul flights.