Qatar Airways prepares to invest in Virgin Australia

Qatar Airways plans to acquire 20% of Virgin Australia, currently the second largest airline in Australia, after Qantas. This share is currently held by Bain Capital, an asset management firm based in Boston, United States. The finalization of this transaction could be confirmed as early as next July.

Virgin Australia has been hit hard by the financial crisis triggered by the covid-19 pandemic. Despite being purchased by Bain Capital in 2020 for $2.45 billion, the airline has failed to return to its pre-pandemic financial position. This instability has led to the loss of jobs for hundreds of employees.

The Qatari national carrier, which already has a regular presence in Australia with daily flights to major cities such as Sydney, Melbourne, Brisbane and Perth, plans to significantly expand its network of destinations in the oceanic country. This ambitious expansion is part of a broader strategy to solidify its footprint in the Australian market.

Additionally, this investment in Virgin Australia could play a crucial role in the company’s recovery, providing necessary financial support as well as managerial skills that could be instrumental in overcoming current challenges.