Australia’s aviation sector just got a major shakeup with Qatar Airways securing a 25% stake in Virgin Australia, approved by the federal government under strict conditions. Here’s how this partnership will reshape competition, routes, and choices for frequent flyers – plus what to watch as the deal materializes.

Qatar Buys a 25% Stake in Virgin Australia.

Latest Updates

  • June 2024: Virgin launches long-haul flights to Doha via Qatar-leased aircraft.
  • Qantas posts record profits, declares special dividend amid renewed competition.
  • Etihad code-share ends June 1; Qatar partnership takes effect.

In a Nuthsell: Key Details

  • The Deal: Qatar Airways acquires 25% of Virgin from Bain Capital.
  • Conditions: Australian board seats and data protections enforced.
  • FIRB Approval: Treasurer Jim Chalmers calls it “pro-competition, pro-jobs.”

What This Means for Travelers

1. Route Expansion & Connectivity

  • 28 weekly Doha flights (4x daily) starting June 2024.
  • One-stop global access: Connect via Hamad International to 65+ destinations (Europe, Africa, Middle East).
  • Domestic feed: Virgin’s 35% domestic market share links to Qatar’s network.
Qatar Airways and Virgin Australia networks combined after the new partnership in 2025.

2. Alliance Shifts

  • Virgin + Qatar replaces Etihad code-share (ends June 1).
  • Qantas + Emirates remains intact, but it faces pressure on Europe-Australia pricing.

3. Fleet & Service Upgrades

  • Leased Qatar aircraft: Expect A350s or Boeing 787s with premium cabins (Qsuites likely).
  • Frequent flyer perks: Potential Velocity-Qatar Privilege Club integration in future phases.
Qatar Buys a 25% Stake in Virgin Australia.

Qantas’ Response: Confidence or Concern?

  • Market dominance: Qantas-Jetstar controls 65% of domestic flights.
  • Profit surge: 11% jump in H1 earnings, special dividend signals financial resilience.
  • Price wars ahead: Qatar-backed Virgin could undercut Qantas on key international routes.
  • Competition watchdog approved: ACCC sees deal as net positive for consumers.
  • IPO delayed: Bain Capital holds majority stake; Virgin’s public listing plans postponed.
Qatar Buys a 25% Stake in Virgin Australia.

Frequent Flyer Implications

  • Points transfers: Will Velocity partner with Qatar Airways? (Not yet confirmed).
  • Status perks: Watch for Qatar lounge access for Virgin elites.
  • Award seats: More availability on Doha-Europe routes post-June.

Timeline of Events

Date Milestone
Oct 2023 Qatar flight expansion denied
Oct 2024 Stake acquisition announced
Feb 2024 Gov’t approves deal with conditions
June 2024 Virgin-Qatar Doha flights begin

Looking Ahead: What to Monitor

  1. Virgin’s IPO plans: Will Bain Capital relist in 2025?
  2. Qatar’s next move: Push for additional Australia flights?
  3. Loyalty program updates: Velocity-Qatar integration timeline.

📋 Bookmark this page – we’ll update as new developments emerge.

Find the Best Award Flights in Seconds

Imagine flying from Sydney to Paris in Qatar QSuites Business Class for the price of an economy ticket. On average, AwardFares premium users get 3x-7x more value from their points, regularly booking $5,000+ flights at a fraction of the cost.

AwardFares is the easiest way to find the cheapest and most convenient award flights across multiple frequent flyer programs. It takes just seconds and a few clicks to get started. You can create an account and try it for free here.

For access to even more powerful features like unlimited daily searches, alerts, seat maps, and flight schedules, explore our Gold and Diamond membership tiers here.

Our guides have all the information you need to be a pro travel hacker and explore the world on points. Here are some related posts you might enjoy: