Qatar Airways to acquire 25% of Virgin Australia

[Saab34]

This won’t go down well over the fence, I don’t think there is much they can do to stop it, all that I can think of, it’s the wet lease being all QR, it’s just a Virgin flight number isn’t it? That’s the bit they might push against.

 

[antycbr]

This won’t go down well over the fence, I don’t think there is much they can do to stop it, all that I can think of, it’s the wet lease being all QR, it’s just a Virgin flight number isn’t it? That’s the bit they might push against.

I wouldn’t be surprised if VA/QR propose a damp lease to tick the “Australian employment” angle with at least the cabin crew being VA. The tech crew will probably be expats anyway

 

[simmomelb]

This won’t go down well over the fence, I don’t think there is much they can do to stop it, all that I can think of, it’s the wet lease being all QR, it’s just a Virgin flight number isn’t it? That’s the bit they might push against.

They've already been in lengthy discussions with FIRB so I'm sure it's unofficially already ticked off.

 

[antycbr]

“I’m flying on a VA flight from BRI to QAR will there be lounge access for me and my four children?”

Facebook, probably…

[note incorrect IATA codes are a known sign of an infrequent frequent flyer]

 

[airlinemn]

Look like they will be A380s!

 

[antycbr]

Look like they will be A380s!

Cue file footage of VS A340 for the Virgin Jumbo

 

[justinbrett]

They've already been in lengthy discussions with FIRB so I'm sure it's unofficially already ticked off.

The FIRB has nothing to do with international capacity, and “ticking off” is two separate applications, the acquisition, and the utilisation of capacity to DOH. FIRB does the former, IASC the latter. ACCC then needs to approve a change to the relationship with QR, as currently they are not permitted to operate overlapping routes.

So really that’s three applications. FIRB should be easy. The IASC will be the tricky one.

 

[Tiki]

Now if only VA would adopt Avios and be transferable at 1:1 with QR and other Avios airlines and still earned from Flybuys at same rate!

 

[Saab34]

If IASC proves somewhat challenging, I guess the worst case scenario is Virgin to operate the DOH flights itself, standing up a long haul fleet would probably only delay it another year.

No idea if the long term plan here is for Virgin to even operate the flights, ever. It could be a wet lease agreement that is somewhat permanent.

With the amount of time passed, no doubt much work has already occurred behind the scenes.

 

[ben95]

Looks like the three 777 may be back if approved. Makes sense why they didnt refit them now.

Maybe they shouldn’t have given back the HND slot that early. Though it’s hard to imagine VA management weren’t aware of this and there’s probably reason to not hold on to it for a few more months.

 

[simmomelb]

The FIRB has nothing to do with international capacity, and “ticking off” is two separate applications, the acquisition, and the utilisation of capacity to DOH. FIRB does the former, IASC the latter. ACCC then needs to approve a change to the relationship with QR, as currently they are not permitted to operate overlapping routes.

So really that’s three applications. FIRB should be easy. The IASC will be the tricky one.

ACCC won't block this, particularly given the recent events and needed additional competition. They'll take a few months to review and provide their data and reasoning, of course.

 

[justinbrett]

If IASC proves somewhat challenging, I guess the worst case scenario is Virgin to operate the DOH flights itself, standing up a long haul fleet would probably only delay it another year.

No idea if the long term plan here is for Virgin to even operate the flights, ever. It could be a wet lease agreement that is somewhat permanent.

With the amount of time passed, no doubt much work has already occurred behind the scenes.

I doubt it will be approved if VA doesn’t propose to transfer to a dry lease in coming years (similar to QF and AY).

Otherwise this blatantly is just a measure to get QR extra capacity. I imagine VA are smarter than this.

Maybe they shouldn’t have given back the HND slot that early. Though it’s hard to imagine VA management weren’t aware of this and there’s probably reason to not hold on to it for a few more months.

Wet leases not permitted for the HND slot (from the Japanese side)

ACCC won't block this, particularly given the recent events and needed additional competition. They'll take a few months to review and provide their data and reasoning, of course.

No I don’t think they will. As I said it will be the IASC that will be the tricky part.

 

[airlinemn]

I suspect the goal will be flying for next years European summer

 

[MooTime]

Finally a solid leak...sunrise.

Waiting for more details, but bloody great news....virgin -widebodies those 2 words together were dead n buried to never be linked again.

Will wait for further details.

Happy VA fanboi here.

 

[ben95]

The IASC will be the tricky one.

Do you mean the ACCC? It’s unlikely QF would contest VA’s allocation for Qatari slots and any uncontested application IASC basically wave it through.

ACCC then needs to approve a change to the relationship with QR, as currently they are not permitted to operate overlapping routes.

ACCC review will be required for any potential alliance / joint venture where schedules and fares are coordinated. Without that the best VA and QR can do is free sale / fixed block codeshare where the two maintain independent pricing and scheduling, effectively still competing. Given QF/EK’s joint venture was renewed in 2022 without much fuss and QR’s existing JV with IAG airlines it’s hard to see how this would be difficult as well.

 

[simmomelb]

Finally a solid leak...sunrise.

Waiting for more details, but bloody great news....virgin -widebodies those 2 words together were dead n buried to never be linked again.

Will wait for further details.

Happy VA fanboi here.

See you on their inaugural long haul flight

 

[MooTime]

They up'ed it by 5-6% recently or the original leak was really off.

 

[antycbr]

Finally a solid leak...sunrise.

Waiting for more details, but bloody great news....virgin -widebodies those 2 words together were dead n buried to never be linked again.

Will wait for further details.

Happy VA fanboi here.

Wasn’t a leak, there is a media release::

Qatar Airways Group announces intention to acquire 25% minority stake in Virgin Australia

• Represents a significant vote of confidence in Virgin Australia and Australian aviation.

newsroom.virginaustralia.com

 

[justinbrett]

Do you mean the ACCC? It’s unlikely QF would contest VA’s allocation for Qatari slots and any uncontested application IASC basically wave it through.

ACCC review will be required for any potential alliance / joint venture where schedules and fares are coordinated. Without that the best VA and QR can do is free sale / fixed block codeshare where the two maintain independent pricing and scheduling, effectively still competing. Given QF/EK’s joint venture was renewed in 2022 without much fuss and QR’s existing JV with IAG airlines it’s hard to see how this would be difficult as well.

No I don’t.

An ongoing wet lease with QR is going to be difficult to pass as an Australian carrier. QF doesn’t need to object (although I expect it will, given it said even VA metal was breaking the rules due to its ownership structure). QR wet lease is going to be difficult to defend, unless VA pledges to transfer to a dry lease.

I don’t expect the ACCC approval will be difficult and is probably the easiest of the three.

 

[aus_flyer]

Was any government authorisation required for Finnair to start operating flights for Qantas?