Qatar Airways Group earlier this week announced its intention to acquire a 25% minority stake in Virgin Australia, confirming long-held suspicions the Doha-based airline had its eye on our country’s second-largest carrier.
The move comes just a month after Travel Daily reported Qatar was finalising a smaller 20% stake in Virgin, and more than 12 months after the Middle-Eastern airline was sensationally blocked from expanding services to Australia by the Federal Government.
Qatar certainly took its opportunity to wink at the government, noting the choice and value the move would provide Australians, strengthening competition in the country’s skies.
The Qatari flag carrier will enable a “measured entry” for Virgin into long-haul international flying by mid next year, with the South Bank-based airline to launch flights to Doha from Sydney, Melbourne, Brisbane, and Perth.
Qatar also used the announcement of the acquisition to plant its flag at Badgerys Creek, at the upcoming Western Sydney International Airport, promising to “explore opportunities” at the facility – inviting a head-on collision with Qantas Airways, which committed to flying from WSI last year.
“This partnership brings the missing piece to Virgin Australia’s longer-term strategy and is a huge vote of confidence in Australian aviation,” outgoing VA Chief Executive Officer Jayne Hrdlicka said.
“It will further strengthen Virgin Australia’s ability to compete over the long term, which will inevitably translate into more choice and even better value airfares for consumers.”
I spoke to MyTravelResearch.com Chief Executive Officer Carolyn Childs who, while keen to temper expectations (the acquisition is yet to be approved by the FIRB or the ACCC), noted the canny timing of the announcement.
“It’s a good time to do it politically, when Qantas has yet to recover from its brand reputation issues. There is intense policy focus on aviation competition, and at the same time, we are back to the three-airline domestic model, meaning Virgin has a good share of the market,” the former International Air Transport Association executive said.
“The public scrutiny of the deal is likely to be favourable…with inbound holiday travel still at only 78% of 2019 levels (VFR is still the big driver here), it’s likely the tourism industry will be supportive too.”
“The optics of the government turning it down or overriding the Investment Board don’t look great in an election year…you can already see how the opposition has sought to weaponise the Rex/Bonza situation…allowing the stake might be easier than allowing QR to increase frequency or making other changes.”
The travelling public now holds its breath for the outcome of necessary regulatory approvals, with hopes this move is not tripped up before the goal line like past moves from Qatar have been.
Another airline changing hands this week was Air Vanuatu, with control of the embattled carrier returned to management, following a court ruling in the country.
Air Vanuatu will return to public hands under a deed of compromise, with all shares transferred to a government-owned vehicle, nullifying the liquidation imposed in May.
The terms of the deed include a restructured workforce and recapitalisation for Air Vanuatu under its new government vehicle.
No date has been set for Air Vanuatu’s full return to the sky, with the airline to first resume domestic services, before it considers international routes in the future.
Air Vanuatu launched a limited scheduled domestic charter operation back in August, flying return flights from Port Vila to Espiritu Santo and Tanna.
Ernst & Young said Air Vanuatu owed more than A$110 million to its creditors at the height of its fiscal peril – debt the airline did not have the assets to serve.
Meanwhile, a year-long, around-the-world cruise will set sail in 2026, with My Cruises exclusively collaborating with Norwegian Cruise Line Holdings to launch ‘Explorations by Norwegian’.
The 371-day, 220-port package, first reported by Cruise Weekly, will set sail in September 2026, visiting all seven continents, and is available to book now.
My Cruises, a subsidiary of FCTG’s Ignite Travel Group, has chartered Oceania Cruises’ Regatta for the itinerary, which travels from Rome to London.
The cruise can be split into 24 segments, with passengers able to book as few as seven days on board.
My Cruises General Manager Michael Middleton described the itinerary as a “game-changer”.
“We don’t think it’s ever been done before – we think it’s a world-first,” Middleton told travelBulletin.
A new report from the Joint Standing Committee on Foreign Affairs has called on the Australian Government to to address policies that will result in more accessible and affordable regional air access.
The recommendation from the Are we there yet?: From recovery to resilience report follows a turbulent period for domestic aviation, which has seen the collapse of Bonza and Rex Airlines, significantly reducing capacity and competition.
The Committee also threw its support behind more open skies agreements to increase capacity on international routes, in a bid to ensure Australia’s tourism sector is not susceptible to future “shocks”, such as those seen during the COVID-19 pandemic.
Lastly, Australia’s favourite travel businesses have been unveiled, with the release of the finalists for the 2024 National Travel Industry Awards (NTIA) People’s Choice Award.
Contiki, Flight Centre North Lakes, JC Travel Team, Royal Caribbean International, and Taking Off Tours have all been nominated as outstanding by News Corp readers.
The winner will be announced at the NTIA gala event, held on 26 October at the ICC Sydney.
It has been a big week in the travel and cruise industries – next week will almost certainly start off a little more slowly, with three states enjoying a four-day-week. But these days, who knows?
