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The Advertiser
2 days ago
- Business
- The Advertiser
Inside Virgin's big international comeback and the seat everyone wants
By Kate Cox Updated July 21 2025 - 4:53pm, first published 4:48pm Qsuite seats can be configured to make a double bed. Picture supplied From: Sydney to Doha Frequency: Once daily Duration: 15 hours Class: Business (Qsuite) Price: From $8000 return Explore more: There's a fair bit of fanfare in the air. Enthusiastic CEO Dave Emerson and his executive team are onboard to mark Virgin Australia's inaugural Sydney to Doha service, the airline's long-awaited return (since 2020) to long-haul international flying, thanks to a partnership with Qatar Airways. Subscribe now for unlimited access. or signup to continue reading All articles from our website The digital version of Today's Paper All other in your area Virgin is wet-leasing Qatar's Boeing 777s - meaning the aircraft, crew and service are Qatar's. And while there are fewer Virgin notes than I expected - apparently, there may be more to come - this is a win for Velocity members. Qatar Airways is regularly crowned airline of the year, and is the current champion. As the lucky passenger in 1A, here's how it stacks up. CHECKING IN: Virgin Australia doesn't offer online check-in for international flights, but who really cares when you need to arrive three hours before departure anyway? Business class passengers get a generous 40kg checked baggage allowance and up to 15kg of carry-on across two bags. I glide through the Virgin Priority queue, fast-track security and passport control, and land in the Air New Zealand lounge - Virgin's partner in Sydney. Bright, airy and well-run, with plenty of space, friendly staff and a constant flow of hors d'oeuvres, it's a civilised start. The writer and minty welcome drink in her Qsuite. THE FLIGHT: Interestingly, my seat - 1A - faces backwards, which takes some getting used to during takeoff and landing. This quirky layout in a 1-2-1 configuration allows for meetings with up to four passengers in facing suites, or double beds for couples. After sliding the door shut and settling into my private cubicle, I dial into a work call, then videocall my dad back in country NSW. (As a former air traffic controller, I think he will get a kick out of the seven-mile-high call - he thinks it's "ridiculous" and because I'm trying to talk quietly, reckons he can't hear a word I'm saying.) At midnight, I ask for my flat bed to be turned down. The turbulence is consistent for the next few hours but I'm too excited to sleep anyway; besides, we arrive at 10pm so I'm saving my shut-eye for the hotel. THE CLASS: Qsuite is Qatar Airways' flagship business class product (there is no first class on this flight) and delivers a first-class experience: fully enclosed private suites, adjustable mood lighting, a la carte dining, Diptyque toiletries in a chic pouch and heaps of storage, including an esky-like box by my seat. It feels less seat, more chic little bedroom. The 15-hour flight is over too soon. Only on VA1: Ross Lusted's osso buco. Picture supplied FOOD AND DRINKS: On boarding, I'm welcomed with dates and cardamom-spiced Arabic coffee and a lime and mint drink - both of which I could happily make a habit of. One of the standout features is on-demand dining: order whatever you want, whenever you want, and eat, sleep and chill on your own schedule. Dishes designed by Australian chef Ross Lusted exclusively for this route (seared cured fish, osso buco and Basque cheesecake) sit alongside more Qatari fare including a mezze with pita bread and fresh berries with rosewater syrup. Breakfast is a smoked salmon hollandaise muffin and some very fresh granola - all the nuts on this flight are so good. For snacking, there are a couple of standouts: steak sandwich with caramelised onion and Swiss cheese and scones with butter and jam (and how on earth do they get those warm scones so perfect on a plane?) Every meal is served with white linen, quality cutlery and - a beautiful touch - a tiny flickering (battery-powered) candle. I barely touch the wine list (which includes a standout Chateau Margaux 2015) because I'm hooked on the many mocktails. ENTERTAINMENT: So many shows (I manage to binge an entire Reacher series), delivered on a huge HD screen with an easy-to-navigate interface and handheld remote. The impeccable Wi-Fi via Starlink is so good that there are announcements reminding passengers to keep the noise down and use headphones. THE SERVICE: More efficient Qatar professionalism than warm Virgin friendliness, but cocooned in your suite, it almost feels like you have the entire cabin to yourself. IN A NUTSHELL: Luxe Qsuite privacy, excellent food and phenomenal Wi-Fi - plus the Velocity points - makes this one flight I'll be embracing in the future. Have you flown VA1 yet? What did you think? Which airline would you like us to review next? Let us know at editor@ Virgin Australia's inaugural Sydney to Doha flight, VA1, is waved off by Virgin cabin crew. Picture supplied Words by Kate Cox Kate is head of travel for ACM. She loves discovering new places and has visited all seven continents, including a year-long lap of Australia with her young all-time favourite destination is ... Sri Lanka. It was two decades ago, but I still haven't forgotten the smells, sights, sounds and tastes, plus the wonderful people, of that diverse country. Closer to home, the coastal town of Yamba never fails to on my bucket list is …The Galapagos or Greenland - both evocative countries that will expand the mind! My top travel tip is … Get lost! Take the unexpected path - you never know what you'll find.
Bloomberg
24-06-2025
- Business
- Bloomberg
Xero Agrees to Buy Melio in Deal Valued at $2.5 Billion
Hi there, it's Keira here in Sydney. Here's all the news you need to know to start your Wednesday morning... Today's must-reads: • Xero buys Melio • Virgin Australia CEO • Calls to ban YouTube for kids New Zealand-based software company Xero has agreed to buy Melio Payments for $2.5 billion in an effort to accelerate US revenue growth, confirming an earlier report by Bloomberg News. Virgin Australia Chief Executive Officer Dave Emerson brushed away concerns the Middle East conflict will disrupt demand for travel. Emerson's comments came as the Bain Capital-backed carrier finally completed a A$685 million initial public offering.
The Star
24-06-2025
- Business
- The Star
Virgin Australia shares soar 8.3% on IPO debut
The IPO attracted strong demand, with institutional investors lodging indicative orders surpassing the offering size during bookbuilding. — Reuters SYDNEY: Virgin Australia shares rallied 8.3% yesterday, after its A$685mil (US$439mil) initial public offering (IPO), a transaction dealmakers hope will revive a subdued listings market. The airline sold 236.2 million shares at A$2.90 each, valuing it at A$2.32bil on a fully diluted basis. The stock began trading at A$3.14, outpacing a 1.2% gain in the Australian benchmark S&P/ASX200. Virgin's listing comes amid operational disruptions, with the airline diverting two Qatar-bound flights to India and Oman, according to flight tracking website FlightRadar24. Qatar temporarily closed its airspace ahead of Iran launching missiles at a US base in the state. Virgin did not immediately respond to a request for comment from Reuters. Shares of Qantas, the main rival to Virgin Australia, climbed 4% yesterday following a 7% drop in global oil prices the previous day, after Iran took no action to disrupt oil and gas tanker traffic through the Strait of Hormuz. Virgin disclosed in an exchange filing that it has hedged 98% of its anticipated fuel usage in Brent crude oil at a cap of US$70 per barrel for the first half of 2026. It has hedged 86% of its anticipated fuel usage at the same price in the second half. 'Four years ago, with the help of Bain Capital, we set out to transform Virgin into a simpler, more focused company with a clear view on how we are going to serve our customers and how we are going to win in the Australian domestic market,' Dave Emerson, Virgin Australia chief executive, said at a listing ceremony in Sydney. Virgin, which is Australia's second-largest airline by market share after Qantas Airways, was delisted in 2020 after private equity giant Bain Capital rescued it from administration. Bain, which bought Virgin for A$3.5bil including liabilities, will see its stake reduced to 39.4% from about 70%, while Qatar Airways, which recently bought into the airline, will retain 23%, the IPO prospectus showed. The IPO attracted strong demand, with institutional investors lodging indicative orders surpassing the offering size during bookbuilding, according to a term sheet reviewed by Reuters. The shares being priced at an almost 30% discount to those of Qantas were an incentive to buy, fund managers said. Virgin has a domestic flight market share of 34.4% as of March versus Qantas' 37.5%, a report from the Australian Competition and Consumer Commission showed. 'From our perspective, the IPO pricing offered an attractive discount to Qantas, allowing room for shareholders to benefit from Virgin's operational improvement targets and structural tailwinds like the rise of premium ticket demand,' said Jun Bei Liu, founder of Ten Cap, which is a Virgin cornerstone investor. 'Virgin's domestic focus and hedged fuel position provide resilience amid geopolitical and commodity market risks.' Virgin pared back its international business under Bain's ownership. It has resumed long-haul flights to Doha through a lease agreement with state-owned Qatar Airways. — Reuters
ABC News
24-06-2025
- Business
- ABC News
Virgin Australia says it is new and improved but the risks of investing in airlines remain
Dave Emerson was woken at 3.30 am with the worst possible news. In a little over eight hours, he was scheduled to ring the bell at the Australian Securities Exchange for the long-awaited resurrection of Virgin Australia. But Iran had chosen that very moment to eke out revenge against America with a missile attack upon a US air base in Qatar, the home of Virgin's partner airline, Qatar Airlines. "I got a phone call this morning at 3.30, 'ah, we're diverting some planes', but two of ours, we had two," he recounted. For an airline chief executive, it's the kind of news that sends shivers down the spine. You can adapt to an economic downturn, take remedial action against the worst of health scares, and hedge against violent moves in the oil price. But war? That's an entirely different scenario. It's one that places passenger and employee lives in jeopardy. And it's hardly the way to celebrate the return of a business that had been to the brink. By dawn, the crisis had passed. US President Donald Trump had declared that both Israel and Iran had agreed to an indefinite ceasefire. Oil prices slumped, Wall Street cheered, and Virgin's planes were back in the air after stopovers in Oman and India. By the time midday rolled around, the champagne was flowing at the ASX, Virgin debuted at a solid 7 per cent premium to the $2.90 a share sale, and a beaming Emerson was enthusiastically ringing the bell. Was he relieved? "Honestly, I didn't have any expectations on how it was going to trade," he said. That's easy to say after the event. Had Virgin shares sunk on the debut, it could have been a scarring experience for all involved, as anyone who remembers the Myer flop will readily recall. It also would have damaged the credibility of the ASX, an institution already under intense fire. The exchange has been shrinking, with a dearth of new listings in recent years that have failed to keep pace with the constant takeovers that have seen an exodus of major corporations. And it would have made life more difficult for private equity funds that would have seen the door shut on a potential exit for their investments. "It's always good to start on a nice positive note," Emerson eventually admitted, after some prompting. "I'm happy to see that." By day's end, Virgin shares had piled on an extra 11 per cent, ending the day at $3.23. Virgin has undergone some radical surgery in the five years since it collapsed. It is now focused almost entirely on domestic routes, centred around the Golden Triangle of Melbourne, Sydney, and Brisbane, has a singular fleet of smaller Boeing 737s, and has outsourced its international operations to Qatar. Debt has been slashed, with a lower metric than Qantas, and last financial year, it delivered its first profit in more than a decade, although that was boosted by a one-off credit recovery. It has also hit the ASX at a time when competition has evaporated following the collapse of REX and Bonza in the past 18 months. And despite the favourable landing on the ASX, it is significantly cheaper than Qantas when the share price is compared to earnings. Qantas, meanwhile, is facing some significant hurdles. After a decade and a half of underinvestment in aircraft under Alan Joyce, Qantas boss Vanessa Hudson is facing a mammoth task upgrading one of the world's oldest fleets. But it would be highly unlikely for Qantas to simply allow Virgin a free kick when it comes to market share and earnings growth. The Flying Kangaroo recently announced the closure of its Singapore-based Jetstar Asia offshoot, a decision that will allow around a dozen extra aircraft to ply the Australian domestic and Tasman routes. More aircraft means extra seats, which translates into competitive air fares. That competition doesn't end with consumers. Qantas will want to ensure that Virgin also has to compete when it comes to capital. Constraining Virgin's margins and earnings will force the comeback airline to be more judicious when it comes to eating Qantas's lunch. Emerson seems content to ensure Virgin's growth doesn't come at the expense of earnings. So, while there may be a lift in competition, don't expect a re-run of Qantas and Virgin's battle to the death that we witnessed a decade ago. "Our growth will come as Australia's GDP grows," he said. Of the $685 million raised through the float, none of the proceeds will find their way into the airline's hands. All will be repatriated to Bain. The US private equity firm will retain a 39 per cent stake, Qatar will keep 23 per cent, private investors will hold 30 per cent, and employees will keep the rest. "We didn't need any additional capital," Emerson said. "We have a very strong balance sheet. We're generating strong returns." The Virgin boss is adamant that Virgin will be able to fund its fleet expansion without raising equity, something Qantas may struggle with.
The Age
24-06-2025
- Business
- The Age
Virgin Australia shares take off on ASX despite Mid-East jitters
Virgin Australia shares took off on their return to the Australian sharemarket, lifting more than 11 per cent on their first day of trading, with investors keen to get a piece of the nation's second-biggest airline despite the uncertainty triggered by the war in the Middle East. After more than four years' absence, Virgin shares relisted on the ASX on Tuesday, rising to $3.23 by market close as investors bet that new management and more streamlined operations would bolster the company's profitability even amid volatile oil prices. Virgin sold $685 million worth of stock to fund managers and retail investors in an initial public offering this month, floating about 30.2 per cent of the company. Investors paid $2.90 for the stock in the IPO. Virgin, which now has a market value of more than $2.5 billion, is trading under the sharemarket ticker VGN. Demand from investors had outstripped the number of shares on offer in the IPO, according to Virgin CEO Dave Emerson, which explains the rise in the share price after the stock started trading. 'We were very pleased with the demand, and we definitely can say that the offer was oversubscribed,' Emerson said before the trading debut. An overall positive market also would have boosted the stock, with the S&P/ASX 200 gaining 1 per cent in its Tuesday session after US President Donald Trump announced a ceasefire between Israel and Iran. The specific timing of the pause remains unclear, with Israel accusing Iran of violating the ceasefire on Tuesday evening AEST, which Iran has denied. Shares of Virgin's bigger rival Qantas Airways were also up strongly on Tuesday, closing with a gain of 2.4 per cent. Virgin was delisted from the ASX in 2020 amid mounting debts and losses. Having entered administration, it was bought by US-based Bain Capital, the private equity firm Emerson worked for before joining Virgin's management in 2021.
