Today I am announcing that Qatar Airways Group’s (Qatar Airways) acquisition of a 25 per cent interest in Virgin Australia can proceed subject to enforceable conditions.
This proposal will deliver more flights for Australians and support secure Australian jobs.
It is expected to strengthen competition in the aviation sector.
My decision aligns with the advice of the Foreign Investment Review Board (FIRB) that this proposal is consistent with the national interest.
It follows extensive cross‑government consultation by Treasury, and the Government has also engaged industry, unions and other relevant stakeholders.
This decision comes after the draft determination by the ACCC to allow the airlines to engage in co‑operative conduct under an integrated alliance for five years. This will lead to 28 new weekly return services between Doha and Perth, Brisbane, Sydney and Melbourne.
On the advice of FIRB, I have approved this proposal subject to legally enforceable conditions that ensure Australian representation on Virgin’s board and protection of its customer data.
It will increase Virgin Australia’s capacity on key international routes and provides a long‑term pathway for the airline to operate its own long‑haul flights.
The proposal is also expected to deliver broader economic benefits including more job creation in Australia, support for the tourism industry and enhancing Australia’s position as a key travel hub.
The CEOs of Virgin Australia and Qatar Airways have written to me with assurances that this investment will create employment benefits and job growth opportunities for Australians.
The airlines’ commitments include:
- A structured secondment program, placing 20 pilots and 40 cabin crew in Doha in 2025 to gain long‑haul flying experience, while creating at least 60 backfill positions in Australia.
- Consultation with unions on the potential for dry lease operations, where Virgin Australia leases its own aircraft and provides its own crew, to begin no later than three years into the partnership.
- An assurance to unions that any future dry lease arrangements will utilise Australian‑based labour.
The Government is committed to a strong and competitive aviation sector as outlined in our Aviation White Paper, ensuring Australians benefit from more choice, improved services and more affordable airfares.