Qatar Airways Group has announced plans to acquire a 25% equity stake in Virgin Australia from US-based private equity firm Bain Capital.

The move, pending approval from Australia’s Foreign Investment Review Board, positions Qatar Airways as a key investor in Virgin Australia, which is gearing up for a potential return to public ownership.

As part of the deal, Qatar Airways and Virgin Australia will launch flights from Brisbane, Melbourne, Perth and Sydney to Doha using leased aircraft by mid-2025.

The expanded partnership will offer several advantages, including enhanced connectivity, an expanded loyalty programme and competitive fares.

Virgin Australia Group CEO, Jayne Hrdlicka, said the partnership brought the missing piece to Virgin Australia’s longer-term strategy and was a huge vote of confidence in Australian aviation.

The new proposed long-haul service between Australia and Doha was estimated to generate an economic benefit of AUD3bn (R35,8bn) to the Australian economy through incremental visitor flows over the next five years, Hrdlickas said.

Qatar Airways Group CEO, Badr Mohammed Al-Meer, said competition in aviation was a good thing and helped to raise the bar, ultimately benefiting customers.

“After a decade of losses resulting in administration, Virgin Australia has emerged as a strong and profitable company with an attractive market position, a loyal customer base, and a promising growth trajectory.”