Qatar Airways in talks to acquire 20% stake in Virgin Australia

2024-6-26 16:48

Qatar Airways has entered discussions about potentially acquiring a 20% ownership stake in Virgin Australia Holdings Ltd, according to a report by the Australian Financial Review.

The report, which cites two people familiar with the negotiations, indicates that this move could significantly reshape the competitive landscape of the Australian aviation market.

Potential partnership with Singapore Airlines

Virgin Australia is also considering selling a stake to Singapore Airlines. This strategic move aims to bolster Virgin Australia’s position against Qantas, the dominant airline in the country.

By aligning with major international carriers, Virgin Australia hopes to enhance its competitiveness and expand its market share.

Regulatory hurdles and future announcements

The potential acquisition by Qatar Airways will require approval from the Foreign Investment Review Board (FIRB). This regulatory step is crucial, as the Australian government has the authority to block the transaction if deemed necessary.

An official announcement regarding Qatar Airways’ interest in Virgin Australia could be made as early as next week, pending regulatory review and approval.

Implications for the aviation market

If successful, Qatar Airways’ acquisition of a stake in Virgin Australia would mark a significant development in the airline industry.

This move could lead to increased competition and potentially lower fares for consumers, as Virgin Australia leverages new partnerships to improve its service offerings and operational efficiency.

The post Qatar Airways in talks to acquire 20% stake in Virgin Australia appeared first on Invezz

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