DOHA: Qantas Airways, Australia’s flagship carrier, indicated a lack of opposition to Qatar Airways’ proposal to acquire a 25 per cent stake in Virgin Australia, the nation’s second-largest airline.
The stance comes as a significant shift from previous efforts by Qantas to persuade the Australian government against Qatar Airways’ expansion, which included attempts to increase flight frequencies to Australia.
According to Qantas’ Chair, John Mullen, the acceptance of foreign investment suggests a strategic openness that aims to enhance competition within the Australian aviation market.
Mullen emphasised that any assessment of the proposed investment would consider essential factors such as job creation within Australia, the integrity of the national air services framework, and the appropriateness of proposed leasing arrangements.
Fostering competition
The regulatory scrutiny highlights the complex balance between fostering competition and safeguarding local employment, a concern echoed by unions representing Qantas pilots, who argue that the Qatar deal could undermine job opportunities for Australian workers.
The CEO of Qantas, Vanessa Hudson, supported the idea of competition as vital for the growth and resilience of the airline industry, although she refrained from quantifying the potential impact of the Qatar investment on Qantas’ operations.
“There is a clear acknowledgment that many Qatar Airways passengers rely on connectivity between Australia and Europe, often routing through Doha. In response, Qantas is strategically enhancing its offerings through non-stop flights, such as the ultra-long-haul routes to London and Paris, aiming to capture market share against competitors with stopover services.”
Additionally, Qantas plans to integrate aircraft acquired through a wet lease from Finnair into its fleet under a dry lease arrangement, further strengthening its operational capabilities with Qantas crew.
The strategic maneuvre reflects the airline’s commitment to maintaining a competitive edge in an increasingly dynamic industry, where global partnerships and investments play a pivotal role.
