Qatar all but set to take 20% stake in Virgin but how will it change Aussie aviation?

Qatar all but set to take 20% stake in Virgin but how will it change Aussie aviation?

A proposed deal between Qatar Airways and Virgin Australia that would see the Qatari carrier acquire a 20 per cent shake in VA is all but done.

In June we reported Qatar’s interest in the deal that would massively shake up the Australian aviation market.

Qatar Airways looks to take a 20% stake in Virgin Australia

This morning, the AFR’s Street Talk column said it understands the deal is within days of being given the green light.

It would still need approval from the Foreign Investment Review Board but with the Government’s decision to block Qatar’s bid for more flights into Australia in recent memory, it would seem an unlikely possibility.

While Bain Capital dead batted our request for comment, the deal would see Bain retain the majority stake in Virgin Australia while levelling out its balance sheet at the same time.

In the six months to 31 December Virgin Australia reporting $2.8 billion revenue, up from $2.5 in the same period the year previous and in FY23 posted a $129 million profit.

What the deal could mean 

The deal would strengthen an already strong relationship between the two carriers.

With a new financial interest in Virgin Australia, Qatar will be keen to bolster the Virgin domestic traffic with increased flights where possible and could take a position on the board.

Virgin’s international routes may also alter, with more flights likely to head through the Qatar hub at Hamad International Airport.

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