Qatar Airways, a strategic partner and major investor in Virgin Australia, divested 2.05 per cent of its stake in the Australian airline on Monday. The sale follows Qatar Airways receiving Foreign Investment Review Board approval to acquire up to 25 per cent of Virgin, a deal that was struck after the two airlines formed a strategic alliance in October 2024. Virgin Australia is a major airline operating in Australia, providing domestic and international travel services. Qatar Airways is the flag carrier of Qatar, connecting passengers across the globe.
Previously, Virgin Australia informed investors that Qatar Airways had paid $800 million for a 22 per cent stake in the company. The arrangement allowed Qatar Airways to bypass limitations on its flight operations to and from Australia by wet-leasing aircraft to Virgin. This involved Qatar Airways providing aircraft, crew, maintenance, and insurance to Virgin Australia for certain routes.
Recently, Qatar Airways has approached the Australian government seeking the right to increase its flight capacity independently of Virgin Australia. This move comes as Hamid International Airport in Doha remains closed, impacting flight operations. Consequently, all Qatar Airways flights, including those wet-leased to Virgin, have been suspended until further notice.
Virgin Australia has been selling only 10 per cent of the available seats on its daily services to Doha, which typically operate from Brisbane, Melbourne, Perth, and Sydney. The reduction in capacity reflects the ongoing disruptions and adjustments within the strategic partnership.
