Qatar Airways Near to Acquiring up to 20% of Virgin Australia

[airlinemn]

Qatar Airways approaches the landing strip on Virgin Australia stake

The deal, expected to be finalised within days, comes nearly 1½ years after Bain Capital delayed a billion-dollar public listing of the Australian airline.

www.afr.com

Just been reported in the AFR. Expect to see the formal announcement by end of the week.

 

[Saab34]

End of the year or week?

 

[HS-TQE]

As posted in the the VA post-admin thread, the MSM did say 'last time' that the Bain and Qatar deal will be "done next week".

I'll believe it when they actually call a formal presser and/or there's a formal picture of representatives of Bain Capital and Qatar Airways "shaking hands" with paperwork in the background.

 

[samh004]

Would be very interesting considering the OneWorld/competitor relationship to Qantas, but I guess they'd never be able to fully integrate to Qatar's FF due to this, but should be useful for them nonetheless.

 

[MacBH]

Wouldn't it be amazing if VA could resume long-haul international flights on wet-leased QR aircraft? In return QR could wet-lease a VA E190 for the empty MEL-ADL sectors...

 

[kpc]

"Qatar Airways is close to finalising a deal to acquire a minority stake in Virgin Australia"

 

[justinbrett]

"Qatar Airways is close to finalising a deal to acquire a minority stake in Virgin Australia"

Already reported this thread for mod edit. It’s very misleading.

 

[Phoenix-1]

Would this functionally change things for VA? Maybe better access to reward seats on QR metal? But it's pretty much on par with saver rewards already. QR wet leasing aircraft seems to be a pipe dream.

 

[tmdl]

Would this functionally change things for VA? Maybe better access to reward seats on QR metal? But it's pretty much on par with saver rewards already. QR wet leasing aircraft seems to be a pipe dream.

I had a look on the QR website, there is alot of rewards seats using avios and if the deal went through I am praying that VA could have access to more seats

 

[Saab34]

Would this functionally change things for VA? Maybe better access to reward seats on QR metal? But it's pretty much on par with saver rewards already. QR wet leasing aircraft seems to be a pipe dream.

In an ownership sense, they have been very public that they only invest on those that make network sense for itself, ie feed. They have also mentioned synergies.

A QR stake would somewhat strengthen its network here, think long term, others like Turkish and Riyadh Air will be somewhat limited in total share without a strong local partner. QR would be cementing its dominance here for the long run with a Virgin tie up, it’s clear they will be somewhat limited in expansion moving forward, Virgin would help strengthen whatever foothold they have.

QR might be of assistance when it comes to VA getting access to some 737s. I’m not sure if the long term plan is for QR to have the 737, they did indicate they only really ordered due to a falling out with Airbus, they have plenty of A320/1N coming, they have this small tiny fleet of MAX 8. Lease it off to Virgin.

 

[serfty]

Already reported this thread for mod edit. It’s very misleading.

Title has been updated.

More reading:

Qatar in talks to take up to 20pc stake in Virgin

The transaction, if successful, would hand the Qatari carrier up to 20 per cent of the private equity-owned airline and comes amid a stalled ASX float process.

www.afr.com

 

[muppet]

Would this functionally change things for VA? Maybe better access to reward seats on QR metal? But it's pretty much on par with saver rewards already. QR wet leasing aircraft seems to be a pipe dream.

Agree. To be honest I can’t see how Bain offloading 20% results in massive changes for VA other than a slightly more complicated share registry. Any commercial opportunities that are likely are possible now, irrespective of ownership - unless QR is holding out for more favourable terms that it thinks it can swing with a couple of board seats?

Perhaps once QR owns 20% it will push for a switch to Avois like it did once it bought 25% of IAG? …. and no doubt the associated carrier charges.

 

[roby]

Agree. To be honest I can’t see how Bain offloading 20% results in massive changes for VA other than a slightly more complicated share registry. Any commercial opportunities that are likely are possible now, irrespective of ownership - unless QR is holding out for more favourable terms that it thinks it can swing with a couple of board seats?

Perhaps once QR owns 20% it will push for a switch to Avois like it did once it bought 25% of IAG? …. and no doubt the associated carrier charges.

If VA were to switch to Avios, they are as good as in oneworld. At that point, I don't know why QF would want to stay in oneworld.

 

[justinbrett]

If VA were to switch to Avios, they are as good as in oneworld. At that point, I don't know why QF would want to stay in oneworld.

Isn’t Velocity the part of VA that’s the most profitable?

And why would VA switching to Avios (which I think is very unlikely) mean that Qantas has to leave Oneworld? VA wouldn’t actually be in Oneworld, and having VA status wouldn’t come with any benefits outside of QR/VA or existing partners.

So really the only “killer punch” would be to kill off Velocity and extend PC to VA, which then just makes it easier for VA elites to fly QF or other Oneworld airlines with status recognition, having just terminated one of the most profitable part of the airline. Great way to kill an airline.

Having said that I think QF would still be able to veto VA joining as an affiliate.

 

[aus_flyer]

Bring it on

 

[Himeno]

Having said that I think QF would still be able to veto VA joining as an affiliate.

I don't see the ACCC agreeing to have both major AU airlines in the same alliance.

 

[SeatBackForward]

And why would VA switching to Avios (which I think is very unlikely) mean that Qantas has to leave Oneworld? VA wouldn’t actually be in Oneworld, and having VA status wouldn’t come with any benefits outside of QR/VA or existing partners.

I see QR leaving oneworld as more likely than QF leaving oneworld. Although having said that QF does have arrangements with AF and KL arleady as well.

 

[justinbrett]

I don't see the ACCC agreeing to have both major AU airlines in the same alliance.

I don’t think ACCC has a say in alliance membership, only codeshare and other unilateral arrangements.

After all, QR and QF are in the same alliance and that’s certainly not stopping any competition.

 

[Himeno]

I see QR leaving oneworld as more likely than QF leaving oneworld. Although having said that QF does have arrangements with AF and KL arleady as well.

If QR were to leave oneworld, they'd take BA, IB and AY with them. If that happened, the alliance would be effectively dead. The other members, such as AA, CX and JL would step in and try to get QR and QF to come to some sort of agreement to end their "conflict" before something like that could happen.

 

[justinbrett]

If QR were to leave oneworld, they'd take BA, IB and AY with them.

I don’t think so. It’s only a 25% share.

BA has far more business in the Americas, and IB is almost exclusively in the Americas (other than Europe).

That would be a case of corporate self harm.

I’d say more likely that the QR carve outs from Oneworld policy will continue and grow but otherwise maintaining the status quo.