Chalmers approves Qatar’s 25% stake in Virgin Australia
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The news: Qatar Airways' acquisition of a 25% interest in Virgin Australia has been approved, subject to enforceable conditions, Treasurer Jim Chalmers said.
Chalmers said the proposal would strengthen competition in the aviation sector, increase Virgin Australia’s capacity on key international routes, and provide a long-term pathway for the airline to operate its own long-haul flights.
The context: The deal, first announced on 1 October last year, involves purchasing the stake from Bain Capital. The approval follows advice from the Foreign Investment Review Board the proposal is in the national interest, Chalmers said.
It also comes after the Australian Competition and Consumer Commission’s draft determination allowing the airlines to engage in co-operative conduct under an integrated alliance for five years. It will result in 28 new weekly return services between Doha and major Australian cities.
What they said: “On the advice of FIRB, I have approved this proposal subject to legally enforceable conditions that ensure Australian representation on Virgin’s board and protection of its customer data,” Chalmers said in a statement.
The airlines have also committed to a secondment program for 20 pilots and 40 cabin crew in Doha in 2025, consultation with unions on potential dry lease operations, and assurances that any future dry lease arrangements will use Australian-based labour, he added.
The source: Jim Chalmers statement
