Qatar Airways is set to acquire a 25 percent stake in Virgin Australia, enabling the launch of 'wet lease' services between Doha and Australia by mid-2025.

As part of this partnership, Virgin Australia plans to introduce new flights to Doha from major cities including Brisbane, Melbourne, Perth, and Sydney, pending regulatory approval.

The wet lease arrangement will allow Virgin to operate long-haul international routes using Qatar's aircraft, significantly enhancing its service offerings.

Jayne Hrdlicka, CEO of Virgin Australia, emphasized that this new partnership with Qatar differs fundamentally from previous arrangements with multiple competing investors.

Hrdlicka also noted that current aviation supply chain challenges post-COVID make it risky for Virgin to independently start long-haul flights.

Treasurer Jim Chalmers highlighted the importance of regulatory scrutiny regarding the Qatar deal, while Opposition leader Peter Dutton expressed support for a competitive airline industry.

Qatar Airways CEO Badr Mohammed Al-Meer stressed that increased competition would benefit consumers and support Australian jobs and businesses.

Following the announcement of the Qatar-Virgin deal, Qantas' share price fell by 3%, reflecting market concerns over heightened competition.

This announcement comes after a year of speculation about Virgin's future, including delays in a planned stock market float and issues with aircraft deliveries.

The financial details of the deal remain undisclosed, and it is subject to review by the Australian Competition and Consumer Commission and the Foreign Investment Review Board.

The Transport Workers Union supports the proposed deal as a chance for Virgin to compete more aggressively with Qantas, advocating for worker benefits.

If approved, this deal will allow Virgin Australia to resume long-haul flights for the first time since its administration in 2020, strengthening its market position.