27/2/2025–|Last update: 27/2/202507:30 PM (Mecca time)
Today, Thursday, Australia agreed to buy Qatar Airways 25% in Verghen Australia from the American direct investment company Pine Capital, which is a challenge to the Airways Cantas, which has long dominated the Australian air tracks.
Qatar Airways proposed in October the purchase of the minority stake for an unannounced amount after the Federal Government rejected in 2023 requests to the Middle Eastern Airlines to run additional services to Sydney, Melbourne, Berisen and Birth.
Promote competition
Australian Treasury Secretary Jim Chalmers said that the deal is expected to enhance competition in the aviation sector and comes after extensive talks by the government with industry, unions and other concerned parties.
He added in a statement: “My decision is in line with the advice of the Foreign Investment Review Council that this proposal is consistent with the national interest.”
And he added: “Based on this advice, I agreed to this proposal, provided that it is available for implementable conditions in terms of the law that guarantees Australian representation in the Board of Directors of Virgin and protecting the data of its customers.”
The Australian Treasury Secretary has the authority to cancel any foreign investments if it is considered a threat to national security.
Virgin CEO, Jin Hardlika, said that the deal “will support continued growth in line with the market at the local level, and will improve our ability to compete in important segments of the market and will add momentum to our ambitions regarding profits.”
Cantas announced today, Thursday, the increase in profits in the first half of the year 11% against the backdrop of a strong demand, and announced special profits for the first time in more than two decades.
Welcome to the competition
“We always say that we welcome the competition, and we always say that we will not oppose the result. Today’s announcement was expected,” Vanessa’s CEO, Vanessa Hudson, told the conference on declaring business results when asked about the approval of the government.
The Australian Competition Control Authority data indicate that Cantas, with its low -cost flight, Gate Star, accounts for about 65% of the local market in Australia, while Virgin, its largest local competitor, accounts for 35%.
Last week, the Australian Competition Control Authority supported the coalition between Virgin Australia and the Qatar Airways, which could lead to 28 new weekly going and return flights between Doha and the main cities in Australia.
Virgin said that its long flights to Doha, which is expected to start next June, will be running using rented aircraft from Qatar Airways and will provide travelers to Europe, Africa and the Middle East more value and options.
Kantas has an international flight partnership with Emirates Airlines in Dubai. Virgin has the symbol participation agreement with Etihad Airways in Abu Dhabi, which ends on June 1.
Payne Capital still maintains a majority share in Virgin, which was aimed at inserting it with a billion Australian dollars (625.63 million US dollars) before these plans were postponed.
