Trade rejoices as Qatar-Virgin deal finally approved

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The decision to approve Qatar Airways‘ partial purchase of Virgin Australia, made yesterday by the Foreign Investment Review Board (FIRB), has been welcomed by the travel trade, with travellers expected to reap the benefits. Yesterday, Treasurer Jim Chalmers confirmed the FIRB had given its green light for the Middle Eastern airline’s acquisition of a 25% stake in the Australian carrier. “On the advice of the Foreign Investment Review Board, I have approved this proposal, subject to legally enforceable conditions that ensure Australian representation on VA’s board and protection of its customer data,” he said. Independent travel-buying network CT Partners said the new services would provide a “much-needed boost” to business and first-class capacity. “The extra competition will ensure better value premium cabin pricing, as while economy airfares to Europe have stabilized or decreased in 2025, business and first-class cabins have continued to increase year to date,” CEO Matt Masson said. “The Qatar Airways route network in Europe, the Middle East and Africa is extensive — it’s part of the oneworld alliance, and the in-flight product is award-winning. Starlink Wi-Fi has been fitted on 30 aircraft, covering 50 per cent of its B777 fleet, which is a game-changer for Australian corporate travellers.” Meanwhile, the Australian Travel Industry Association (ATIA) said the deal would result in increased competition, investment and choice for Australian travellers. “This is great news for Australians who want more choice and more competitive fares when travelling internationally, with greater choices on flights to Europe. More competition in the skies drives innovation, better pricing and improved services for travellers,” CEO Dean Long said. “It also increases the potential for greater investment to drive domestic competition. It’s a decision which will bring long-term benefits to Australian travellers and the broader travel industry.” FIRB’s move to approve the transaction follows the ACCC’s granting of preliminary approval on 18 February. Under the five-year authorisation, the two airlines will collaborate on 28 new weekly return services between Doha and four Australia cites – Perth, Brisbane, Sydney and Melbourne. Virgin Australia will operate the new services using Qatar Airways’ aircraft and crew, under a ‘wet lease’ arrangement.

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