ACCC Greenlights Virgin Australia-Qatar Alliance
The Australian Competition and Consumer Commission (ACCC) has announced a draft determination proposing to grant authorization for an integrated alliance between Virgin Australia and Qatar Airways. This move is expected to pave the way for the two carriers to cooperate closely for a period of five years, marking a significant development in the Australian aviation landscape.
Under the proposed arrangement, Virgin Australia will partner with Qatar Airways to launch 28 new weekly return services linking Doha’s Hamad International Airport (DOH) with Australia’s major gateway airports – Perth (PER), Brisbane (BNE), Sydney Kingsford Smith (SYD), and Melbourne (MEL). The new services are aimed at enhancing connectivity between Australia and the Middle East, and they are designed to offer passengers increased options, improved convenience, and a host of loyalty benefits.
The key component of the partnership is a wet lease agreement. Under this agreement, Qatar Airways will provide both the aircraft and its experienced crew to operate the new services on behalf of Virgin Australia. This collaborative model enables Virgin Australia to expand its international network without having to immediately invest in its own long-haul aircraft and crew training. ACCC Commissioner Anna Brakey explained that the proposed cooperative conduct is likely to result in several public benefits. “We consider that the proposed cooperative conduct would likely result in enhanced products and services for air travellers, including increased choice of international flights with additional connectivity, convenience, and loyalty program benefits for consumers,” Brakey said.
The ACCC’s analysis further suggests that the alliance is unlikely to impose any significant public detriment. According to Commissioner Brakey, “Virgin Australia is unlikely to commence operating long-haul international services between Australia and the Middle East on a stand-alone basis in the next five years.” This indicates that the alliance is seen as a necessary step for the airline to meet growing international travel demand without negatively impacting the local aviation workforce. The ACCC noted that the likelihood of a material detrimental impact on Australian aviation employees is minimal, further supporting the case for the alliance.
This proposal is not entirely new ground. In November 2024, the ACCC granted an interim agreement to the two carriers. That initial arrangement allowed both airlines to promote and sell 28 weekly round-trip flights between Doha and Australia’s key cities – Brisbane, Melbourne, Perth, and Sydney. The interim approval was designed to test the waters and provide regulators with insight into how the full-scale alliance might benefit consumers and the broader market. Now, with the draft determination in place, the ACCC is inviting public feedback on the proposal before making its final decision.
If approved, the integrated alliance will not only increase travel options but also reinforce the competitive dynamics of the international air travel market. Enhanced connectivity provided by this partnership is expected to boost tourism, facilitate smoother business travel, and potentially contribute to the growth of Australia’s aviation sector amid a rapidly evolving global market.
The proposed alliance represents a strategic initiative for both airlines. For Virgin Australia, it offers an opportunity to expand its international footprint in a cost-effective manner. For Qatar Airways, the collaboration strengthens its global network and allows the carrier to leverage its robust infrastructure and long-haul expertise in a new and growing market.
As regulatory approvals from the ACCC and other government bodies are awaited, industry stakeholders and consumers alike are watching closely. The final decision on the proposal is expected to come after a period of public consultation, which will provide additional insights into the potential benefits and any concerns surrounding this landmark airline alliance.
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