👉 Background: Virgin Australia was founded as Virgin Blue back in 2000. But during the pandemic, Virgin Australia hit serious turbulence when it fell into voluntary administration. It was saved by private investment firm Bain Capital who bought it for $3.5 billion.

👉 What happened: While Qatar Airways has always had a flight-sharing partnership with Virgin Australia, now it's gone one better after it announced its plan to buy a 25% stake in Virgin Australia. Under this proposed deal, Virgin Australia intends to launch flights from Brisbane, Melbourne, Perth and Sydney to Doha.

👉 What else: The purchase of 25% is for an undisclosed amount, and will need approval from not only the ACCC but also the Foreign Investment Review Board.

What's the key learning?

💡There’s a very careful balance between protecting national interests and creating consumer benefits.

💡The Foreign Investment Review Board (FIRB) examines proposed foreign investments and determines it they are in Australia’s national interest. On the one hand, it strengthens Virgin Australia, which could provide more competition for Qantas.

💡On the other hand, it introduces a powerful foreign owner into the Australian aviation industry. And it's not the first time Qatar Airways has tried to push further into the Aussie market - which was rejected last year to much outrage. So it will be interesting to see where this goes, especially if it helps bring down prices for consumers.