Qatar Airways looks to acquire share in Virgin Australia amid market expansion efforts
Date
6/27/2024 4:59:55 AM
(MENAFN) According to a report on Wednesday, Qatar Airways is engaged in discussions to acquire up to 20 percent of Virgin Australia shares currently held by Bain Capital. This move comes as part of Qatar Airways' strategic maneuvering to increase its market presence and compete more vigorously against Qantas, Australia's dominant airline.
Last year, Bain Capital, a US private equity firm, had planned to list Virgin Australia on the Australian Stock Exchange, aiming for a valuation of AUD 1 billion (USD 665.5 million), but the initiative was postponed. The news agency indicated that Qatar Airways is expected to announce its intentions regarding the acquisition of these shares in the coming week.
The relationship between Qatar Airways and Australia has faced challenges in recent years, particularly when the Labor Party-led government restricted Qatar Airways from expanding its foothold in the Australian aviation sector. Despite these hurdles, Qatar Airways continues to pursue opportunities to strengthen its position in the Australian market.
Meanwhile, Qatar Airways is also advancing negotiations with RwandAir to acquire a significant stake in the African airline. Yvonne Makolo, CEO of RwandAir, expressed confidence that Qatar Airways will finalize the deal to purchase a 49 percent stake in RwandAir, a negotiation that has been ongoing for about five years and is now approaching its final stages.
These strategic moves highlight Qatar Airways' broader ambitions to expand its global footprint and enhance its competitive edge in the aviation industry by securing substantial stakes in prominent airlines across different continents.
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