Lower costs, better value as airlines deal takes flight
Australians travelling to Europe could get more bang for their buck with Qatar Airways taking a 25 per cent stake in Virgin Australia.
The decision to approve the deal is expected to strengthen competition and deliver more flights and connection points, with 10,000 extra seats forecast to be added by the end of 2025.
While the price of airfares is expected to go down, travellers would benefit most from improved flexibility and value, Australian Travel Industry Association chief executive Dean Long said.
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By continuing you agree to our Terms and Privacy Policy.“You can find the right airplane, the right airline at the right time to get you safely where you need to be,” he told AAP.
It is also expected to drive down airfares and benefit regional Australia through improved inbound tourism connections, sales and marketing visibility to these destinations, according to Australian Airports Association chief executive Simon Westaway.
“This deal is a major win for the aviation industry and the Australian flying public,” he said.
Treasurer Jim Chalmers announced the decision on Thursday, which follows cross-government consultation by Treasury, the aviation industry, unions and other stakeholders.
The proposal’s approval was subject to legally enforceable conditions to ensure Australian representation on Virgin’s board and protection of customer data.
The airlines have committed to a secondment program that will place 20 pilots and 40 cabin crew in Doha to gain long-haul flying experience and creating backfill positions in Australia and specific consultation with unions.
Transport Workers’ Union national secretary Michael Kaine said the acquisition had necessary safeguards but noted concerns remained over labour standards.
“There’s a huge potential here to build Virgin’s international footprint and ensure opportunities for workers,” he said.
This follows Australian Competition and Consumer Commission approval for the airlines to engage in co-operative conduct under an integrated alliance for five years, leading to 28 new weekly return services between Doha and Perth, Brisbane, Sydney and Melbourne.
“We welcome a new era for Virgin Australia,” Virgin Australia Group chief executive Jayne Hrdlicka said.
“Qatar Airways’ investment is a huge vote of confidence in our business and Australian aviation more broadly.”
