Qatar Airways to acquire 25% of Virgin Australia

[HS-TQE]

Well at least the VA/QR stake made the "official announcement" stage, which is further than the VA 1.0 era of the old "Singapore will taek ovah" recurring vaporware during the Borghetti and early Scurrah years.

 

[justinbrett]

By a reports the international structure survived the administration.. so these flights will be notionally operated by 'VAi' just with QR providing wet leased services.. which is no different to how the NZ and Pacific flights operate today.

Except the giant Oryx painted on the tail kind of gives the game away.

 

[henrus]

I really hope QR use the VA configured 777s on these Australian wet lease services.

 

[tmdl]

Im just hoping they do some like QF does for its Platinum members and release early reward seats on QR for its elites

 

[ben95]

then giving that local airline aircraft in order to operate set routes which benefit the new foreign owner.

We can all see that’s exactly the point - that includes Bain, QR, VA, QF and of course the Australian government. It’s naive to think Bain/QR and its teams of advisors lawyers, back channels to politicians hasn’t thought this through. They’ve either priced it such that the investment is attractive stand alone or concluded that it’s a non issue.

 

[justinbrett]

We can all see that’s exactly the point - that includes Bain, QR, VA, QF and of course the Australian government. It’s naive to think Bain/QR and its teams of advisors lawyers, back channels to politicians hasn’t thought this through. They’ve either priced it such that the investment is attractive stand alone or concluded that it’s a non issue.

But it’s interesting the two announcements were made together (acquisition and wet lease). There may well be a provision that QR won’t proceed with the former if the latter is blocked.

A smarter move may have just gone for acquisition and later applied for a wet lease. This seems to suggest QR doesn’t want to be stuck with an asset it can’t use.

Credit when it’s due for transparency.

 

[ben95]

But it’s interesting the two announcements were made together (acquisition and wet lease).

Indeed. Which is what led me to think it’s more likely the latter (they think it’s a non issue). Given the QR/QF fiasco brought bad PR to the government and the upcoming election, I actually think it’s a smart move to announce it now while the government have its hands tied while people still remember the QF protectionists allegations.

 

[MacBH]

I'm still hoping they won't wet lease just to Doha but also to the US...
Any route where QF is the most premium choice must be ripe for disruption.
And since it would be a wet-lease and not a code share, we should even get Polaris lounge access under the UA partnership.

 

[mbell1510]

I imagine Virgin's ownership structure that allows it to fly international is already set up for Bali, NZ and Fiji ops so that part won't be touched with Qatar's buy in.

Certainly don't think Qatar getting their hands dirty is ideal for Australia. History suggests not a single foreign airline has stuck in Australia or left a robust airline so what makes us think Qatar will be different. Hopefully it stays at 25% as a cornerstone investor with the remainder diversified between the ASX and the likes of Virgin, Main, etc.

 

[Saab34]

I really hope QR use the VA configured 777s on these Australian wet lease services.

No chance. They are already half way past its first D check, next one due 2030, next to zero enter a second check, they get scrapped.

A QR 787 with Virgin touch will be just as good as anything else in the market. 3 across 787 is painful but it’s just a fact of life now.

 

[encryptededdy]

And since it would be a wet-lease and not a code share, we should even get Polaris lounge access under the UA partnership.

I don't think UA would be pleased to see QR Aircraft flying on Australia/US routes, even if it is technically a VA flight.

 

[Harrison_133]

No chance. They are already half way past its first D check, next one due 2030, next to zero enter a second check, they get scrapped.

A QR 787 with Virgin touch will be just as good as anything else in the market. 3 across 787 is painful but it’s just a fact of life now.

Not to mention that the 3 ex VA 777s won't be able to cover all 4 proposed routes assuming the frequency is daily on each.

 

[PERLHR]

How old are the current QR A330s? They do still fly a few dont they?

Anyway whatever the wet lease agreement is it's a start long overdue. I'm just going to say congrats! Could.be interesting times ahead.

 

[twinaisle]

I really hope QR use the VA configured 777s on these Australian wet lease services.

It will most likely be Q suites to align with the other 777 services.

There will be no dedicated aircrafts to VA as the QR aircraft flying for VA will be flying QR's other routes too.

 

[justinbrett]

Indeed. Which is what led me to think it’s more likely the latter (they think it’s a non issue). Given the QR/QF fiasco brought bad PR to the government and the upcoming election, I actually think it’s a smart move to announce it now while the government have its hands tied while people still remember the QF protectionists allegations.

I certainly don’t think they think it’s a non issue. JH explicitly said they don’t take approval for granted.

Plenty of other examples (especially with QF) of applications being blocked. You never know how these things will go, just ask QR itself.

The ACCC approval could be interesting. A VA/QR JV should be easy, but could well come at the cost of the BA/IB JV. There’s also a world where the wet lease is approved but not the codeshare. Would VA run it unilaterally without QR codes?

 

[ben95]

There’s also a world where the wet lease is approved but not the codeshare. Would VA run it unilaterally without QR codes?

The way the PR is phrased - launching of those routes subject to ACCC approval seems to suggest VA won’t do it alone without a QR backed JV.

 

[Human]

Would VA run it unilaterally without QR codes?

Back in the day when VA briefly flew to Abu Dhabi ... were those flights codeshares with Etihad or VA flights only?

 

[andye]

Back in the day when VA briefly flew to Abu Dhabi ... were those flights codeshares with Etihad or VA flights only?

IIRC there were a few VA flights about 12 years ago

 

[Harrison_133]

Back in the day when VA briefly flew to Abu Dhabi ... were those flights codeshares with Etihad or VA flights only?

At one stage VA flew Abu Dhabi - Kuala Lumpur under EY flight numbers.

 

[Himeno]

IIRC there were a few VA flights about 12 years ago

From what I recall, they started with 5 777s as V Australia, operating to LAX from the AU east coast. They pulled some aircraft from LAX to try the NAN, HKT and JNB routes (without success) before signing a interline and codeshare agreement with EY and started AUH flights about a year before V Australia, Virgin Blue and Pacific Blue merged into Virgin Australia.