FILE PHOTO: Qatar Airways unveils a bid to take a 25 percent stake in troubled airline Virgin Australia on Tuesday, October 1, 2024. This deal is seen to shake up Australia’s Qantas-dominated market. INQUIRER FILES
SYDNEY, Australia — Qatar Airways unveiled a bid to take a 25 percent stake in troubled airline Virgin Australia on Tuesday, a deal that could shake up Australia’s Qantas-dominated market.
The airlines, along with Virgin owner Bain Capital, announced details of the proposed agreement, which had long been rumored, before markets opened in Sydney.
Article continues after this advertisementUnder the plan, Qatar would take a minority stake in Virgin for an undisclosed sum.
FEATURED STORIES BUSINESS National ID gives more Filipinos ‘face value BUSINESS BIZ BUZZ: Unwinding Gogoro … quietly BUSINESS Polvoron maker seeks P500 million capital for expansionThe firms said it would spell more direct flights from Brisbane, Melbourne, Perth, and Sydney to Doha, which would better link Australia with Europe and elsewhere.
That could significantly shake up Australia’s air travel market which is currently dominated by Qantas, a pseudo-flag carrier beset by allegations of price gouging and deliberate overbooking.
Article continues after this advertisement“This will ensure Australian consumers have access to even better value airfares and greater choice,” the companies said in a joint statement.
Article continues after this advertisementREAD: Qatar Airways acquires 25% stake in private African carrier Airlink
Article continues after this advertisementThe deal could also pave the way for Virgin to relist on the stock market. However, it will be subject to regulatory approval and fierce political debate.
Qantas has previously helped scupper plans for Qatar to provide more flights from Australia.
Article continues after this advertisementQantas – along with its low-cost brand Jetstar – has a more than 61 percent share of the domestic air market and has strong political clout.
READ: Qatar Airways reports record $1.7 billion annual profit
In 2023, Australia’s centre-left government rejected Qatar’s bid to put on 21 extra international flights to and from Australia.
Political opponents accused the government of trying to shield Australian carrier Qantas from competition despite its record profits, resulting in high fares for international flights.
Qatar Airways CEO Badr Mohammed Al-Meer said the proposed Qatar-Virgin tie-up would be good for Australians.
Subscribe to our daily newsletter
“We believe competition in aviation is a good thing and it helps raise the barredgaming, ultimately benefiting customers” he said. “This agreement will also help support Australian jobs, businesses and the wider economy.”
READ NEXT Why championing Equity, Diversity, and Inclusions in organizat... Oil-rich Saudi projects budget deficit through 2027 EDITORS' PICK Central Visayas’ most wanted killed in shootout in Argao, Cebu Kristine gets nearer; Metro Manila, 42 other areas under Signal No. 1 Party-list system: What to know ahead of 2025 polls Manila Water Foundation and partners underscore benefits of handwashing Espenido retracts drug-related allegations vs De Lima Tropical Storm Kristine slightly intensifies; Signal No. 2 in 5 areas MOST READ SC issues TRO vs Comelec resolution on dismissed public officials Tropical Storm Kristine slightly intensifies; Signal No. 2 in 5 areas LIVE UPDATES: Tropical Storm Kristine Green spaces driving growth: How Filinvest City's Park System enhanced its property value View comments