The ACCC has granted interim authorisation for Virgin Australia and Qatar Airways to begin a strategic five-year alliance, allowing the airlines to cooperate on 28 weekly return flights between Doha and Sydney, Melbourne, Brisbane and Perth.
Set to commence in June 2025, the new services will expand the current Aussie network operated by Qatar Airways.
According to the ACCC, the airlines sought interim approval for Virgin to begin Sydney, Melbourne and Brisbane to Doha services in June 2025, with Perth following in November.
Under the proposed agreement, Virgin Australia will operate the flights using Qatar Airways aircraft and crew through a wet-lease arrangement.
The airlines argue the partnership will boost flight capacity and enhance travel options for passengers flying between Australia and Qatar.
“We consider that granting interim authorisation now will allow Qatar Airways and Virgin Australia the lead time to undertake the necessary planning discussions, marketing, selling and system alignment in preparation for Virgin Australia to commence flying the new services by June 2025,” ACCC Deputy Chair Keogh said.
“We are carefully considering the concerns that interested parties have raised, particularly around the wetlease arrangements and the impact of the proposed exclusivity arrangements between Virgin Australia and Qatar Airways.”
VFF impact
Velocity Frequent Flyer members will continue to earn and redeem points on Singapore Airlines routes, with existing agreements with South African Airways and Virgin Atlantic remaining unchanged.
The new services are contingent on final regulatory approval from the ACCC and other government agencies, with the commission assessing the potential benefits of the alliance against any possible downsides.
In the event that final approval is not granted, the ACCC has accepted a commitment from both airlines to protect customers with existing bookings. A draft determination is expected in February 2025.
“Affected customers will be given the option of a refund or re-accommodation on a suitable alternative flight at no additional charge and would not be out of pocket for any reasonably foreseeable costs if these proposed new services ultimately don’t get approved,” Keogh stated.
“Having this court-enforceable undertaking that protects customers was important to our decision to allow Virgin Australia and Qatar Airways to start selling tickets now.”
Cheaper fares?
Flight Centre Corporate Global COO Melissa Elf said the tie-up is positive news for travellers.
“Flight Centre Corporate has been actively calling for more international capacity and competition to our shores, so we’re pleased to see this welcomed by Australia,” Ms Elf said.
“It will not only make travel to the Middle East and Europe more affordable for our corporate travellers, but it will importantly see inbound benefits to Australian trade and tourism.
“Those extra flights will certainly have an impact on international travel out of Australia, particularly to Europe, which has generally been slower to return to pre-pandemic capacity, and has seen higher airfares as a result.”
The news comes less than two weeks after Etihad Airways announced it would end its codeshare and frequent flyer partnership with Virgin Australia, effective 1 June 2025.
For more information, visit ACCC’s website.
