Australian competition regulators have moved to authorize the Virgin Australia and Qatar Airways

alliance, enabling the pair to engage in cooperative operations under an integrated partnership for five years pending final approval.

Final stages

On February 18, the Australian Competition and Consumer Commission (ACCC) issued a statement that it is proposing to authorize the Virgin Australia

and Qatar Airways partnership, enabling the pair to operate under an integrated alliance for five years.

“Virgin Australia and Qatar Airways are seeking authorization to engage in an integrated alliance where Virgin Australia, in partnership with Qatar Airways, will commence 28 new weekly return services between Doha and Perth, Brisbane, Sydney, and Melbourne.”

The two airlines proposed that Virgin Australia would use Qatar Airways’ aircraft and flight crew services to operate the flights, or simply put, wet lease the Qatari carrier’s aircraft to fly from Doha Hamad International Airport

(DOH) to the four Australian cities.

Photo: Virgin Australia

However, the Commission warned that the new air services were still subject to final regulatory approval by the ACCC and other government bodies. The former is currently seeking feedback on its draft decision before giving the final stamp of approval.

On October 1, 2024, Qatar Airways announced its intentions to acquire a 25% stake in Virgin Australia and expand the two carriers’ current partnership to include the aforementioned wet lease services. At the time, the company said that these services should launch in mid-2025.

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It follows Virgin Australia adding Melbourne-Doha service, its fourth route to Qatar.

Public benefits

Nevertheless, Anna Brakey, the Commissioner of the ACCC, said that the proposed partnership would likely result in several public benefits, including enhanced products and services for air travelers.

“The ACCC considers that the proposed cooperative conduct is likely to result in public benefits and is unlikely to result in any public detriment.”

Still, following the Commission’s interim authorization, Virgin Australia and Qatar Airways have been able to market and sell the services since November 29, 2024.

Photo: Austin Deppe | Shutterstock

“When granting interim authorization, the ACCC accepted a court-enforceable undertaking from both airlines, which ensures that if any of the necessary final regulatory approvals are not granted, then customers who have booked the proposed new services will be given the option of a refund or re-accommodation on a suitable alternative flight at no additional charge and would be compensated for any reasonably foreseeable costs.”

The ACCC also noted that a number of stakeholders have raised concerns about the Qatar Airways and Virgin Australia partnership. They argued that the proposed partnership would circumvent Australian workforce laws and regulations, and the lack of time limits on the use of Qatar-based crew to operate the services would negatively impact Australia’s flight crews.

In response, Brakey noted that with Virgin Australia unlikely to restart long-haul services on a stand-alone basis in the next five years, the Commission did not consider there to be a material, detrimental impact on Australia’s flight crews.

The ACCC has invited stakeholders to comment on the draft proposal of the partnership until March 7.

Related

Virgin Australia And Qatar Airways Get Okay For Wet Lease Alliance

Virgin Australia is edging closer to resuming long-haul international flights, although it will be with Qatar Airways aircraft and crews.

Expanding in a limited market

While Virgin Australia will operate the flights in partnership with Qatar Airways, the Australian airline will finally enable the Qatari carrier to expand its capacity to/from Australia.

In July 2023, the Australian government blocked Qatar Airways’ bid to add 28 weekly flights from Doha to Brisbane Airport (BNE), Melbourne Airport

(MEL), Perth Airport (PER) and Sydney Airport

(SYD).

Photo: Coby Wayne | Shutterstock

Virgin Australia will operate 28 weekly flights from Brisbane, Melbourne, Perth, and Sydney to Doha through the new partnership. In February, Qatar Airways has scheduled 35 weekly flights from Doha to the four Australian airports, which does not include its one-stop service from Doha to Adelaide Airport (ADL) via Melbourne.

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Virgin Australia Opens International Bookings With Qatar Airways Partnership

Virgin Australia is now taking bookings for its new international long-haul services operated by Qatar Airways