Qatar Airways will take a 25% stake in Virgin Australia as Bain Capital plans an IPO for Australia’s number two carrier.
The Australian government has protected Qantas, keeping airfares high and options limited for Australians, by blocking growth of flights by Qatar Airways. This gives Qatar a stronger foothold into the Australian market.
Virgin Australia has had a number of foreign airlines with significant stakes over the years – including Etihad, Singapore Airlines, Air New Zealand and Hainan Airlines’ HNA Group. Meanwhile, Qatar Airways owns stakes in IAG (British Airways, Iberia, Aer Lingus and Vueling), Cathay Pacific, LATAM and China Southern.
Together Virgin Australia and Qantas control over 90% of the Australian market. Meanwhile, Delta Air Lines partner Rex has failed in its attempt to take them on. Qatar’s stake remains subject to Australian government approval.
Since I fly intra-Australia every year, I’m happy to see potentially stronger QF competition. I really don’t find the Aussie air fares that bad, but the F add-on is always out of line (and QF only lets me pre-select the last row of narrowbodies even if I pay the quite high price–insufficient status). Good news is, a lot of nonstops with reasonably short fly times, making Y not so bad. And, boarding, and the lack of gate checking, is great.
How dare you write an article about Australian aviation without writing about Delta’s 10 weekly flights to Sydney.
Thank goodness for a little competition within Australia.