Qatar Airways is in discussions to acquire up to a 20% stake in Virgin Australia, which is currently owned by Bain Capital.
This development was reported by the Australian Financial Review (AFR) on Wednesday.
The potential investment comes as airlines vie for a greater share of the Australian market, which is predominantly controlled by Qantas.
Bain Capital, a U.S.-based private equity firm, had previously intended to list Virgin Australia on the Australian Securities Exchange with an anticipated valuation of A$1 billion ($665.5 million).
However, this plan was postponed, according to a report by Reuters last year.
Qatar Airways, which is government-owned, might reveal its intentions regarding the stake acquisition as soon as next week, the AFR indicated.
Both Bain Capital and Qatar Airways have chosen not to comment on the matter.
The relationship between Qatar Airways and Australia has been rocky recently.
The Labor government blocked Qatar Airways’ attempt to expand its air services within the country.
This move has created tensions between the airline and Australian authorities.
Despite this, Qatar Airways appears to be pursuing a strategic investment in the Australian aviation sector by targeting a significant share in Virgin Australia.
The potential stake buy reflects Qatar Airways’ ambition to enhance its footprint in the competitive Australian market, challenging Qantas’ dominance.
This move also highlights the ongoing strategic maneuvers by global carriers to strengthen their positions in key markets worldwide.
If Qatar Airways succeeds in securing this stake, it could bring about significant changes in the dynamics of the Australian aviation industry.
This investment would mark a notable shift in Virgin Australia’s ownership structure and could potentially influence the competitive landscape of air travel in Australia.
Overall, the potential investment by Qatar Airways in Virgin Australia underscores the airline’s strategic efforts to expand its global presence and the continuing rivalry among airlines to secure market share in lucrative regions.