Qantas Airways is reportedly okay with Qatar buying a 25% share in Virgin Australia

Qantas Airways is reportedly okay with Qatar buying a 25% share in Virgin Australia

Qantas Airways, Australia’s main airline, has no problem with Qatar Airways buying 25% of Virgin Australia, the airline’s chair and CEO said on Friday.

Qantas’ stance

Earlier, Qantas tried to persuade the Australian government not to approve Qatar Airways’ proposal to offer more flights to Australia, according to Reuters.

Now, Qantas has changed its approach. It says that its strong investment plans make it ready to compete with Qatar Airways.

“We don’t mind if foreign airlines invest in Australian airlines,” Qantas Chairman John Mullen said at the company’s annual meeting, as quoted by Reuters.

He added that the government should consider several things when reviewing Qatar Airways’ proposal, such as the impact on Australian jobs, how well Australia’s air services rules work, and whether ‘wet leasing’ is appropriate.

Meanwhile, Virgin Australia is asking the government for permission to start flights from Australia to Doha by June 2025. They plan to use Qatar Airways planes and staff through a process called ‘wet leasing.’

However, Qantas pilots’ union has criticized this plan, saying it could reduce job opportunities in Australia.

Qantas CEO Vanessa Hudson said the airline is ready to compete with others in the market but didn’t share how the Qatar Airways deal might affect its finances.

Many Qatar Airways passengers travel between Australia and Europe with a stop in Doha. To stay ahead of one-stop competitors, Qantas is investing in new planes and expanding ultra-long non-stop routes, such as Perth-London and Perth-Paris, and plans to add Sydney-London flights soon.

Hudson also mentioned that Qantas will bring several planes it leased from European airline Finnair into its own fleet under a ‘dry lease’ by the end of 2025. These planes will be flown by Qantas pilots and crew.

Published: 25th October 2024

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