Qatar Airways is reportedly mulling the purchase of a 20% stake in Bain Capital-owned Virgin Australia Airlines, Reuters reported last week, citing the Australian Financial Review (AFR). The airline could announce details for the acquisition plans as early as this week. Qatar’s interest in a stake requires approval from the Foreign Investment Board which could be blocked by the government, AFR writes.

REMEMBER- Qatar was denied by Australia a request for additional routes last year over what the Australian government described as invasive body searches of five Australian women at Hamad International Airport in 2020. Qatar Airways entered talks more recently with Australia’s government to boost the number of routes it operates in the country. The Qatar Chamber also recently inkedan MoU with the Australian Chamber of Commerce and Industry (ACCI) to pursue prospects for trade and investment and to swap business and trade data.

Qatar Airways has been on an expansion spree: Qatar Airways is set to close a 49% acquisition of RwandAir. The carrier also launched its first cargo hub at Kigali International Airport (KGL) in Rwanda in partnership with RwandAir. Qatar Airways is also looking to invest in a southern African airline as part of expansion plans.

About Virgin Australia: Virgin Australia is an Australian-based “hybrid” airline with low-cost carrier features. The airline was acquired by US private equity firm Bain Capital for USD 2 bn in 2020.

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