Aussie airports welcome Virgin-Qatar deal, more competition in our skies

The deal could be 'a major win' for Australian customers.

Virgin Australia crew members.

By Sarah Falson

Updated April 1, 2025, first published February 27, 2025

Qatar Airways' approved acquisition of a 25 per cent stake in Virgin Australia on Thursday won't be opposed by Qantas which has welcomed the new competition.

The deal will allow Virgin to "wet lease" aircraft from Qatar Airways for international routes.

Virgin Australia will return to long-haul flying in June 2025 from Sydney, Brisbane and Perth, and December 2025 from Melbourne, using aircraft wet-lease from Qatar.

Get exclusive travel tips, hidden gems & expert insights: delivered to your inbox

The airline had stopped long-haul flying during the pandemic.

Virgin Australia Group chief executive officer Jayne Hrdlicka said it was "a major win for Australian consumers".

"Today we welcome a new era for Virgin Australia. Qatar Airways' investment is a huge vote of confidence in our business and Australian aviation more broadly. It sets us up for long-term success and adds fuel to our bold transformation agenda," Ms Hrdlicka said.

More than 50,000 seats have been sold on Virgin Australia's new Doha services since they went on sale in December. The new routes will allow customers to connect to services to Europe, the Middle East and Africa.

Ms Hrdlicka said the interest from consumers since the tickets went on sale had been "incredible".

"It's clear that bringing great value and choice to consumers, giving them more options to travel to Europe, new destinations, new itineraries is making a big difference in the community, and we're really proud about that and excited to get those first flights away in June," Ms Hrdlicka told ACM.

She said the deal had already brought Vigin ticket prices on international routes back in line with pre-pandemic levels.

"I think competition is great. It's great for Australians. It's great for everyone who's serving Australians. It causes us all to lift our game. And so I think service experiences will improve, and I think prices will be competitive," she said.

Read more on Explore:

Qantas CEO Vanessa Hudson said on Thursday morning Qantas welcomes competition and will not oppose the Treasurer's decision.

"Our focus is about looking after our customers. It's about continuing with the investment that we are doing, and we feel really confident in being able to compete not just against Qatar and Virgin, but we compete against 52 international carriers globally," Ms Hudson said.

"So we really feel focused. Our team is absolutely lifting right across the board. So you know, we look forward with positivity in terms of the outcome."

The Australian Airports Association (AAA) has also welcomed the Treasurer's approval of the deal.

They said an alliance between Virgin and Qatar will facilitate greater choice for Australian travellers with more capacity on international routes, as well as air freight opportunities.

The AAA has long called for more competition in the Australian airline market, particularly in the domestic space.

CEO Simon Westaway said the deal was a "major win" for Australian flyers as it would improve connectivity and competition in the industry.

"We're pleased to see this move that will drive down airfares and create jobs growth," Mr Westaway said.

"There are also added benefits for regional Australia, as the alliance will provide improved inbound tourism connections and sales and marketing visibility to regional tourism destinations."

The Treasurer Jim Chalmers said the deal was "consistent with the national interest".

Words bySarah Falson

Sarah is ACM’s travel producer. She believes regional travel is just as fun (if not better) than staying in the big cities and loves any travel experience to do with nature, animals and food!.

My all-time favourite destination is ... Cornwall. From the giant seagulls to the blustery beaches, Cornish pasties and fishing villages, it stirs something romantic and seafaring in me.

Next on my bucket list is … Mongolia. I want to go somewhere really unique that feels totally foreign and challenges my way of life.

My top travel tip is … Don’t plan too much. Walk the streets and let it happen. And make sure you check out what’s within a few blocks of your hotel - sometimes the best local food is found that way.