Doha: Qatar Airways is set to purchase a 25 percent stake in Virgin Australia from U.S. private equity firm Bain Capital, in a move that is expected to intensify competition with Qantas Airways, which has long dominated Australian air routes. The deal, for an undisclosed amount, will require approval from the Australian government. Last year, authorities had rejected Qatar Airways' bid to increase flights to key cities like Sydney, Melbourne, Brisbane, and Perth.
Virgin Australia CEO Jayne Hrdlicka expressed optimism about the partnership, stating, "This deal fills a key gap in Virgin Australia's long-term strategy. It brings a major shareholder with the scale and expertise we currently lack, enabling us to better compete domestically." Hrdlicka further emphasised in an interview with ABC television that the partnership with Qatar Airways will give Virgin Australia access to valuable resources and support.
Following the news, shares in Qantas dropped by as much as 4.3 percent, making it one of the worst performers on the benchmark S&P/ASX 200 index as of 0239 GMT.
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