Qatar Airways purchased massive stake in Virgin Australia to secure capacity Catherine King rejected, Ross Greenwood says
Qatar Airways took a 25 per cent stake in Virgin Australia to secure the additional capacity it was controversially denied by Transport Minister Catherine King in 2023, Sky News' Business Editor Ross Greenwood has declared.
Join SkyNews.com.au or tune in at 11am AEST to watch Greenwood's in-depth analysis of the Qatar-Virgin deal and the Aussie carrier's IPO.
Labor faced heated criticism for months after it was revealed the Albanese government denied Qatar Airways additional flights following consultation with Qantas.
It came at a time when travellers were plagued by sky-high airfares and limited capacity.
In late 2024, it was revealed Qatar intended to purchase a 25 per cent stake off Virgin's owner Bain Capital and it was approved by the Treasurer and the Foreign Investment Review Board in 2025.
Under the new make-up of the company, Virgin has begun wet-leasing aircraft from Qatar, meaning Virgin could use Qatar's planes and staff on its flights.
Greenwood said this new arrangement allowed Qatar to finally secure the capacity denied to it about two years prior.
'For Qatar, the linkage with Virgin gives it political clout - to lift the number of flights it makes into Australia,' he said.
'Now - after the Virgin deal, Qatar will wet-lease aircraft to Virgin and potentially use up to 28 flight slots from Australia to Doha that are currently unused.
'The first of these Virgin flights took off two weeks ago using Qatar crew, aircraft and catering but branded as Virgin flights.
'The whole service that - for nine years - has seen Qatar named by Skytrax as the best airline in the world.'
The new partnership will connect Australians through long-haul international flights from Sydney to Doha, allowing for new routes through Qatar's global network of Europe, the Middle East and Africa.
Flight Centre's CEO Graham Turner said Qatar Airways backing Virgin had 'solidified' the Aussie airline as it looked to compete with Qantas and the National Carrier's partner Emirates on routes to Europe.
'The airline industry is one where you do need deep pockets and I think that Qatar really offers some serious security there,' Mr Turner told SkyNews.com.au earlier this month.
The expertise and massive size of Qatar's fleet, which is often ranked as one of the world's top airlines, is considered essential for Virgin's European expansion.
'Having a partner like Qatar that's obviously heavily committed to the Australian international market, particularly to Europe and the UK, is going to be a really positive thing for Virgin here,' Mr Turner said.
Virgin is also expected to benefit from a massive investment by Qatar for 210 widebody Boeing aircraft.
Editor in Chief of aviation website 42 Thousand Feet Geoffrey Thomas said the additional aircraft would enable Virgin to relaunch trans-Pacific and Asian routes alongside European flights.
'With Qatar Airways and their buying power … I see them as being a real rock of Gibraltar, if you like, for Virgin,' Mr Thomas told SkyNews.com.au.
'In the recent order for about 130 B787s, I see a number of those, possibly 20, making their way to Virgin as part of a bulk buying.
'That will help Virgin relaunch to Asia, relaunch the United States and become a true international airline in its own right.'
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