STORY: Australian gov't approves Qatar Airways' deal to buy minority stake in Virgin Australia
SHOOTING TIME: Feb. 28, 2025
DATELINE: March 1, 2025
LENGTH: 00:02:00
LOCATION: Canberra
CATEGORY: ECONOMY

SHOTLIST:
1. various of Qatar airline
2. various of Virgin airline
3. various of people in the airport

STORYLINE:

The Australian government has approved Qatar Airways' acquisition of a 25 percent stake in the nation's second-biggest airline.

Treasurer Jim Chalmers said on Thursday that the government's Foreign Investment Review Board has approved Qatar Airways's move to purchase a 25 percent stake in Virgin Australia from its owner, Bain Capital.

In a statement, Chalmers said that the deal would strengthen competition in Australia's aviation sector.

"It will increase Virgin Australia's capacity on key international routes and provide a long-term pathway for the airline to operate its own long-haul flights," he said.

"The proposal is also expected to deliver broader economic benefits including more job creation in Australia, support for the tourism industry and enhancing Australia's position as a key travel hub."

Jayne Hrdlicka, outgoing chief executive of Virgin Australia, said that the deal represented a "new era" for the airline and Qatar Airways Chief Executive Badr Mohammed Al Meer described it as a "huge boost to our shared ambition to create even greater choice and value for all Australian passengers".

The deal was announced in October last year and is still subject to formal approval from the Australian Competition and Consumer Commission, which said in a draft decision released earlier in February that it was planning to grant authorization.

Virgin is Australia's second-largest airline and the sole competitor to Qantas, and its budget carrier Jetstar, on major domestic routes.

In April 2020 it became one of the first airlines globally to collapse during the COVID-19 pandemic.

Bain Capital, a U.S. private investment firm, bought the troubled airline for 3.5 billion Australian dollars (2.2 billion U.S. dollars) and brought it out of voluntary administration in November 2020.

Xinhua News Agency correspondents reporting from Canberra.
(XHTV)