Qatar Airways’ move to take a 25 per cent stake in Virgin Australia will force Qantas to “defend” its market share, an Aussie travel industry leaders says. The deal, which comes after months of negotiation between the Aussie airline, its US owner Bain Capital and the Doha-based carrier , will ultimately mean increased competition in Australian aviation, such as lower airfares and greater choice. According to Virgin, the move will look to deepen and strengthen the existing codeshare deal between Virgin and Qatar, recently named the world’s best airline , and has the potential to fast-track Virgin’s international network.
Currently, Virgin’s international routes include Japan, Bali, New Zealand, Fiji, Vanuatu and Samoa. However, if the 25 per cent stake is approved by the Foreign Investment Review Board and ACCC, it will see Virgin launch flights from Brisbane, Melbourne, Perth and Sydney to Doha, in the Middle East. Virgin’s domestic services will also be improved by reportedly allowing the airline to lease Qatar’s twin-aisle B777s for routes in Australia.
Virgin currently carries 31 per cent of Australia’s domestic traffic, with Qantas/Jetstar taking 62 per cent. What the proposed deal means for Aussies Flight Centre Travel Group managing director of Australia, James Kavanagh, said the proposed deal will benefit Aussies in a positive way. “An investment like this is only going to make Virgin Australia stronger and more competitive which is good for the ent.