Qatar Airways’ (QR, Doha Hamad International) acquisition of a 19% stake in Virgin Australia (VA, Brisbane International) is expected to be announced within days, subject to preliminary approval from the Australian government’s Foreign Investment Review Board, The Australian newspaper reported.

Reportedly dubbed “Project Doubles,” the stake would deepen Qatar Airways’ ties with the Australian carrier at the expense of Oneworld partner Qantas (QF, Sydney Kingsford Smith). The Qatar Airways and Virgin Australia already have a codeshare agreement that, among other things, sees Qatar favoring Virgin’s frequent flyers over Qantas’. The upcoming announcement reportedly ends ongoing speculation about a possible deal. Last month, Qatar Airways acquired a 25% stake in Airlink (South Africa) (4Z, Johannesburg OR Tambo).

In 2023, Qantas lobbied the Australian government to block Qatar Airways’ application for additional flight rights to Australia. The existing bilateral agreement between the two countries allows for 28 weekly flights to Australia’s four major airports – Sydney Kingsford Smith, Melbourne Tullamarine, Brisbane International and Perth International. Emirates (EK, Dubai International), with which Qantas has a codeshare partnership, can operate up to 168 weekly flights to the same four airports.

The rejection of Qatar Airways’ application, at a time when capacity was in short supply in Australia and elsewhere, proved controversial and attracted considerable criticism. Qatar Airways has since re-applied for more flights.

Qatar’s stake will give Virgin Australia’s majority owner (93%) Bain Capital a solid valuation as it continues to consider an IPO. Bain acquired Virgin Australia for A$3.5 billion ($2.35 billion), including liabilities, in 2020 after the airline went into voluntary administration. It has since recouped most of the cash component of that investment, and Virgin Australia is now trading profitably, although it has yet to release its financial results for fiscal 2023.

Virgin Australia referred a request for comment to Bain Capital, which declined to comment. ch-aviation also reached out to Qatar Airways for comment.