ACCC Grants Temporary Approval for Virgin-Qatar Airways Alliance

The Australian Competition & Consumer Commission (ACCC) has granted temporary authorisation for Virgin Australia and Qatar Airways to form an integrated alliance, allowing the airlines to cooperate on several new flight routes. The approval, announced on November 29, 2024, will enable the two carriers to promote and sell 28 weekly round-trip flights between Doha and four major Australian cities: Brisbane, Melbourne, Perth, and Sydney.

This temporary authorisation allows the airlines to begin their planning and marketing efforts for Virgin Australia’s new services, which are set to start in June 2025 from Sydney, Melbourne, and Brisbane to Doha. Perth will follow in November 2025. The new routes are part of the airlines’ strategy to enhance connectivity between Australia and the Middle East, offering travelers more options for long-haul travel.

Mick Keogh, Deputy Chair of the ACCC, explained the reasoning behind granting the interim approval, saying, “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 to prepare for the new services by June 2025.” This allows both airlines to proceed with critical steps like advertising and system integration while awaiting final approval.

If final regulatory approval is not granted, customers who have already booked flights on the new services will be protected. Keogh reassured passengers, stating, “Affected customers will have the option of a refund or re-accommodation on a suitable alternative flight at no additional charge and will not incur any out-of-pocket costs if the proposed services are ultimately not approved.”

As part of the new arrangement, Virgin Australia will ‘wet lease’ aircraft and crew from Qatar Airways for the operation of the new routes. This type of leasing agreement allows one airline to operate flights using another airline’s aircraft and personnel, which is common in the aviation industry to manage fleet capacity.

While the temporary authorisation is in place, the ACCC has yet to make a final decision on the airlines’ request for a five-year approval. The ACCC has indicated that it will issue a draft decision on the matter by February 2025, which will determine the final outcome of the proposed alliance.

The approval is a significant step forward for both airlines as they look to enhance their global networks and provide more travel options for passengers traveling between Australia and the Middle East. If the alliance receives final approval, it will further solidify Qatar Airways and Virgin Australia’s positions as major players in the competitive international aviation market.

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