Virgin Australia, Qatar Airways Alliance Gets ACCC Approval

The Australian Competition and Consumer Commission (ACCC) has provisionally approved a five-year alliance between Virgin Australia and Qatar Airways, stating that the partnership poses minimal competitive risks while enhancing travel options for passengers.

Under the agreement, Qatar Airways will become Virgin Australia’s exclusive Middle East and Türkiye partner, offering codeshare, interline, and loyalty program benefits. Virgin Australia will reciprocate for Qatar Airways in Australia, despite Qatar Airways’ membership in the Oneworld alliance alongside Qantas.

A Virgin Australia spokesperson welcomed the ACCC’s decision, emphasizing the benefits for Australian travelers, including better connectivity to Europe, the Middle East, and Africa, increased tourism, job creation, and enhanced freight export options.

As part of the partnership, Virgin Australia plans to wet lease Qatar Airways Boeing 777-300ERs, launching daily flights to Doha from Sydney, Melbourne, Brisbane, and Perth. Currently, Qatar Airways operates 28 weekly flights under the existing bilateral air services agreement, with past efforts to expand capacity unsuccessful.

In parallel, Qatar Airways has proposed acquiring a 25% stake in Virgin Australia, subject to final regulatory approvals from the ACCC and Foreign Investment Review Board.

The ACCC has invited public submissions before issuing its final ruling by April 2025. Meanwhile, Qatar Airways will adjust its Australian operations, replacing A380-800 flights to Perth with Boeing 777-300ERs and restructuring its Melbourne-Adelaide service to Melbourne-Canberra by late 2025.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com