Qatar Airways to buy 25% stake in Virgin Australia ahead of potential IPO Reuters

(Reuters) – Qatar Airways plans to buy a 25 percent minority stake in carrier Virgin Australia from private equity firm Bain Capital, the parties said in a joint statement on Tuesday.

“This partnership brings the missing piece to Virgin Australia’s longer-term strategy… it will further strengthen Virgin Australia’s ability to compete in the long term, which will inevitably translate into more choice and even better airfares for consumers,” said Jayne Hrdlicka, CEO of Australia’s second largest carrier.

Virgin Australia also plans to launch flights from Brisbane, Melbourne, Perth and Sydney to Doha, subject to approval from Australia’s competition regulator.

The deal, whose financial details were not disclosed, is also subject to approval by the Foreign Investment Review Board.

Qatar Airways has shared a tumultuous relationship with Australia in recent years following its attempt to increase its air presence in Australia which was blocked by the Labor government.