Speculation is mounting that Qatar Airways (QR, Doha Hamad International) is weighing a stake in Virgin Australia (VA, Brisbane International) amid a row over Canberra's decision to turn down the Qatari carrier's request for more flights to Australia.

Reports and rumours that Qatar Airways has been considering investing in Virgin Australia have circulated for some time, but there's been no definitive confirmation of their interest at this time, although insiders informed ch-aviation that the reporting on this issue was purely speculation and not necessarily accurate.

Virgin Australia declined to comment and Qatar Airways was not immediately available.

Virgin Australia plans an initial public offering (IPO) on the Australian Stock Exchange (ASX) in November this year. The airline delisted after US investor Bain Capital acquired 93% of the airline in 2020 after it was placed in voluntary administration.

Meanwhile, Virgin Australia has come out in defence of its codeshare partner Qatar Airways before an August 28 Senate committee where Chief Executive Officer Jayne Hrdlicka called on the federal government to reconsider its decision last month to block an application by Qatar Airways to add 21 flights per week to the 28 it currently offers to Sydney Kingsford Smith, Melbourne Tullamarine, and Brisbane International. As Qatar Airways' commercial partner, Virgin Australia would have benefited from the additional bilateral air rights. "Five hundred million dollars out of the economy with this decision mean less jobs (and less opportunities and denied growth for (tourism)," Hrdlicka told Virgin Australia's staff in a video clip leaked to the media. "We're disappointed, and we'll continue to work hard to make this possible."

Qantas's outgoing chief executive officer, Alan Joyce, on August 28 told the Senate committee hearing he believed more Qatar Airways flights would distort the market by hurting the recovering capacity of other airlines. Qantas has a codeshare arrangement with Qatar's rival, Emirates (EK, Dubai International).

The government decision followed a public backlash after a group of Australian women were removed from a Qatar Airways flight at gunpoint in October 2020 and subjected to invasive physical examinations after a new-born child was abandoned at Doha Hamad International.