‘Major win’ for flyers as Qatar-Virgin deal approved
Plane tickets may get cheaper after Qatar Airways’ plan to take a 25 per cent stake in Virgin Australia was given the green light by the federal government.
Qatar Airways’ proposal to take a 25 per cent stake in Virgin Australia is expected to strengthen competition, deliver more flights and create more jobs.
Australian Airports Association chief executive Simon Westaway said it is also expected to drive down airfares and benefit regional Australia through improved inbound tourism connections, sales and marketing visibility and jobs safeguards.
“This deal is a major win for the aviation industry and the Australian flying public,” he said.
Treasurer Jim Chalmers said the government approval, announced on Thursday, followed cross-government consultation by Treasury, engaging the aviation industry, unions and other relevant stakeholders.
“My decision aligns with the advice of the Foreign Investment Review Board that this proposal is consistent with the national interest,” he said.
Chalmers added he had approved the proposal subject to legally enforceable conditions to ensure Australian representation on Virgin’s board and protection of its customer data.
“The CEOs of Virgin Australia and Qatar Airways have written to me with assurances that this investment will create employment benefits and job growth opportunities for Australians,” he said.
Treasurer Jim Chalmers said the deal is subject to legally enforceable conditions to ensure Australian representation on Virgin’s board and protection of its customer data. Image: Virgin Australia
The airlines have also committed to a secondment program that will place 20 pilots and 40 cabin crew in Doha to gain long-haul flying experience and creating backfill positions in Australia, and specific consultation with unions.
It follows a draft determination by the Australian Competition and Consumer Commission to allow the airlines to engage in co-operative conduct under an integrated alliance for five years, leading to 28 new weekly return services between Doha and Perth, Brisbane, Sydney and Melbourne.
Virgin Australia Group chief executive officer Jayne Hrdlicka said the partnership sets the airline up for long-term success.
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“Qatar Airways’ investment is a huge vote of confidence in our business and Australian aviation more broadly,” she said.
“Being backed by one of the world’s largest airlines now gives us the scale and access to industry expertise which will support continued growth in line with the market domestically, improve our ability to compete for key segments of the market and add momentum to our margin ambitions.
“Many of our people are personally excited about the secondment opportunities, and we have seen this through the extraordinary response to the expressions of interest for pilot and cabin crew roles with Qatar Airways.”
The proposal is expected to provide a long-term pathway for Virgin Australia to operate its own long-haul flights.
