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DALLAS — The Qatar Airways Group (QR) announced today that it intends to acquire 25% of Virgin Australia's (VA) stake, the country's second-largest airline. The agreement would significantly strengthen the two carriers’ partnership and increase competition in Australian aviation.
The minority 25% equity stake affected belongs to Bain Capital, which began investing in VA after its economic crisis in 2020. Virgin Australia suffered greatly from the COVID-19 pandemic and had to revise its strategy after declaring bankruptcy four years ago.
Jayne Hrdlicka, CEO of the Australian carrier, said: “I am delighted that our closer relationship allows us to put our ‘toe in the water’ regarding long-haul international.” She continued by clarifying: “We do not take this for granted and have made submissions outlining the benefits of the transaction.”
Virgin Australia’s Situation in 2024
Since restructuring in 2020, Virgin Australia has given up a large part of its international network and retired all its widebody planes. The company phased out all five Boeing 777s and six Airbus A330s and refocused its strategy exclusively on Boeing 737 operations.
As of September 2024, VA operates 92 Boeing 737 family jets. Of those, 75 belong to the successful 737-800, nine to the shorter 737-700, and lastly 8 belong to the 737-8 MAX variant.
Regarding its route network, Virgin Australia schedules its fleet on 33 domestic and 7 international destinations. In addition to its extensive domestic route map, the carrier also flies to New Zealand, Fiji, Indonesia, and Japan, among others.
Featured image: Virgin Australia
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