Qatar Airways Group intends to acquire a minority 25 per cent equity stake in Virgin Australia from Bain Capital, the airlines announced on Tuesday.
Subject to several regulatory approvals, the deal would enable Virgin to launch flights from Brisbane, Melbourne, Perth and Sydney to Doha, connecting into Qatar Airways' global network under a wet lease.
A wet lease involves one airline providing aircraft, complete crew, maintenance and insurance to another airline.
It will allow Virgin Australia to make a measured entry into long-haul international flying by mid-2025, after starting codesharing with Qatar Airways in 2022.
The agreement would improve Virgin's ability to compete over the long term, CEO Jayne Hrdlicka says. (Darren England/AAP PHOTOS)
"This partnership brings the missing piece to Virgin Australia's longer-term strategy and is a huge vote of confidence in Australian aviation," Virgin Australia Group chief executive Jayne Hrdlicka said on Tuesday.
"Importantly, it will further strengthen Virgin Australia's ability to compete over the long term, which will inevitably translate into more choice and even better value airfares for consumers as well as additional Australian aviation jobs."
Competition in Australia's aviation sector has been in the spotlight since the collapse of Rex Airlines, which had tried to challenge Qantas and Virgin's dominance of east coast capital routes.
The announcement comes a year after the Albanese government copped flak for knocking back Qatar's proposal to double the 28 weekly services it currently offers.
The decision came under scrutiny after it was revealed Qantas lobbied the government against allowing the extra flights, before posting a record $2.5 billion profit.
The new proposal will need approval from the Foreign Investment Review Board and other regulators.
The agreement would help support Australian jobs, businesses and the economy, Qatar Airways says. (Richard Wainwright/AAP PHOTOS)
Qatar Airways, wholly owned by the Qatari government, said the proposed investment demonstrated its strategic alignment with Virgin Australia and collective ambition to deliver the best possible service and value to Australian passengers.
"We believe competition in aviation is a good thing and it helps raise the bar, ultimately benefiting customers," Qatar Airways Group chief executive Badr Mohammed Al-Meer said in a statement.
"This agreement will also help support Australian jobs, businesses and the wider economy."
Virgin said it had been an active participant in the federal government's Jet Zero Council, and expected its partnership with Qatar Airways to support sustainable aviation fuel opportunities.
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