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

[QF029]

Article from the AFR.

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

Qatar Airways, one of the largest airline groups in the world, is negotiating to take as much as a 20 per cent stake in Virgin Australia in a deal that, if successful, would dramatically shake up the country’s aviation industry.

My first reaction is presumably this would suggest Qatar would exit Oneworld?

 

[aus_flyer]

Fantastic. This would be amazing!

 

[encryptededdy]

My first reaction is presumably this would suggest Qatar would exit Oneworld?

They've spent a lot of time recently getting neighbouring airlines into Oneworld

 

[SYD]

My first reaction is presumably this would suggest Qatar would exit Oneworld?

Really?

20% of an airline at the cough end of world with single digit percentage share of global airline PAX would hardly be rationale for such a dramatic shift. More likely, VFF shifts to Avios and OW!

 

[HS-TQE]

QR also has minority stakes in a few Oneworld carriers (namely the IAG group).

 

[jakeseven7]

My first reaction is presumably this would suggest Qatar would exit Oneworld?

Highly doubt it.

As discussed in the other thread, certainly some of VA2’s core ‘values’ might be ‘reshaped’ though with a part owner like Qatar though

 

[QF029]

Really?

20% of an airline at the cough end of world with single digit percentage share of global airline PAX would hardly be rationale for such a dramatic shift. More likely, VFF shifts to Avios and OW!

I think there's almost zero chance that VA switch to OneWorld (if I interpreted your post correctly).

 

[HS-TQE]

Very likely VA will remain alliance-free for the foreseeable future if Qatar's 20% stake does go through Bain (and the FIRB).

 

[SYD]

I think there's almost zero chance that VA switch to OneWorld (if I interpreted your post correctly).

That was tongue in cheek because there’s zero chance QR would leave OW if they invest in VA. Also, VA can’t “switch” until they actually join an alliance first.

 

[Himeno]

Really?

20% of an airline at the cough end of world with single digit percentage share of global airline PAX would hardly be rationale for such a dramatic shift. More likely, VFF shifts to Avios and OW!

If VA were to somehow look to be getting pulled into oneworld, not only would QF veto it, the regulatory bodies wouldn't allow it.

QR buying a large part of VA would be a long game to get access to the Australian side of the QR-AU air service agreement flight allowances. Wet lease some aircraft to VA, have VA apply for the 28 AU-DOH slots from IASC and QR have doubled their flights.

 

[RooFlyer]

As I suggested in the other thread, my idea would be QR control and they put Virgin in Star Alliance. Imagine the fun that would bring with lounge entitlements.

 

[MooTime]

I'd happily exchange my velocity points for avios, where do we sign up!
1-1 of course.

Bugger Oneworld, who needs that riffraff when you have QR, SQ and UA likeables.

 

[encryptededdy]

Bugger Oneworld, who needs that when you have QR, SQ and UA.

I do wonder if the SQ partnership will remain if QR takes a stake in VA.

 

[RSVKanga]

This stake has to go through the appropriate government approvals, and Australia’s sovereignty is the key factor at play. To what extent will this proposed stake affect our economic prosperity, including the security and viability of our Australian-owned national carrier? Qatar Airways is owned by an autocratic state with unlimited oil funds, and it's no secret that they ultimately want Australia to not have a national carrier, just because they're salty about the government denying them extra capacity on national interest grounds. They will do anything to achieve that. I know some forum members will be delighted at that possibility, but I think the vast majority of the Australian population would like to see a strong, profitable Qantas with a large, modern fleet and extensive network, and are happy with it receiving appropriate levels of protection from the government (just like how other countries protect their national carriers regardless of whether it is publicly or privately owned)

Apart from being potentially harmful to our sovereignty, I also think that this acquisition will cross multiple red lines in OW that would intimidate a founding member of the alliance that is our national carrier. No doubt that there would be significant instability and escalation of tension in oneworld should this stake be approved.

My first reaction is presumably this would suggest Qatar would exit Oneworld?

That would be great, but it’s unlikely. It’s no longer called oneworld, it’s oryxworld. Qatar has stakes in BA, IB, CX, and are rumoured to take stakes in AA and AY as well. I do hope our national carrier stands firm against Qatar’s activities and actions.

 

[jase05]

I don’t think QR would move VA to any alliance but they could move them to the Avios cartel.
QR ain’t leaving OW and zero chance of VA joining it as QF would rightfully block it.

 

[HS-TQE]

I do wonder if the SQ partnership will remain if QR takes a stake in VA.

I'd think VA's unilateral minor partnership with EY (QR's local rival) would be more in danger than the partnership with SQ.

 

[jase05]

it’s oryxworld. Qatar has stakes in BA, IB, CX, and are rumoured to take stakes in AA and AY as well.

Soon to add UX to the IAG stables too and have their buddies from Oman joining soon.
They’re coming to get you

 

[MooTime]

This stake has to go through the appropriate government approvals, and Australia’s sovereignty is the key factor at play. To what extent will this proposed stake affect our economic prosperity, including the security and viability of our Australian-owned national carrier? Qatar Airways is owned by an autocratic state with unlimited oil funds, and its no secret that they ultimately want Australia to not have a national carrier, just because the government denied them extra capacity due on national interest grounds. They will do anything to achieve that. I know some forum members will be delighted at that possibility, but I think the vast majority of the Australian population would like to see a strong, profitable Qantas with a large, modern fleet and extensive network, and are happy with it receiving appropriate levels of protection from the government.

Apart from being potentially harmful to our sovereignty, I also think that this acquisition will cross multiple red lines that would intimidate a founding member of oneworld that is our national carrier. No doubt that there would be significant instability and escalation of tension in oneworld should this stake be approved.


That would be great, but it’s unlikely. It’s no longer called oneworld, it’s oryxworld. Qatar has stakes in BA, IB, CX, and are rumoured to take stakes in AA and AY as well. I do hope our national carrier stands firm against Qatar’s activities and actions.

<redacted> QR 20% would not be stopped. Not like they taking 51%.

 

[p--and--t]

This stake has to go through the appropriate government approvals, and Australia’s sovereignty is the key factor at play. To what extent will this proposed stake affect our economic prosperity, including the security and viability of our Australian-owned national carrier? Qatar Airways is owned by an autocratic state with unlimited oil funds, and its no secret that they ultimately want Australia to not have a national carrier, just because the government denied them extra capacity due on national interest grounds. They will do anything to achieve that. I know some forum members will be delighted at that possibility, but I think the vast majority of the Australian population would like to see a strong, profitable Qantas with a large, modern fleet and extensive network, and are happy with it receiving appropriate levels of protection from the government.

Apart from being potentially harmful to our sovereignty, I also think that this acquisition will cross multiple red lines that would intimidate a founding member of oneworld that is our national carrier. No doubt that there would be significant instability and escalation of tension in oneworld should this stake be approved.


That would be great, but it’s unlikely. It’s no longer called oneworld, it’s oryxworld. Qatar has stakes in BA, IB, CX, and are rumoured to take stakes in AA and AY as well. I do hope our national carrier stands firm against Qatar’s activities and actions.

You do seem to repeat yourself thread after thread after thread.

AFAIAA VA is 100% foreign owned currently, sure there may be a change in dynamic but 20% being sold to another foreigner is here nor there.

 

[SeaWolf]

Australian-owned national carrier

a national carrier

is our national carrier

our national carrier

You forgot the fine print:
* National carrier promotional offer is not available nationally. Offer void in Tasmania and the ACT. Offer limited in South Australia and the Northern Territory. See Jetstar website for further details.