The Australian Competition and Consumer Commission (ACCC) said today it had granted preliminary approval for an “integrated alliance” between the two airlines.
Under the proposed deal, Virgin Australia would use Qatar planes to fly these new routes under something known as a “wet lease” agreement for five years.
Qatar had applied to double its weekly services between Doha and Sydney, Melbourne, Brisbane and Perth in 2023, but the proposal was rejected by the government.
The watchdog said this partnership is likely to be a “benefit to the public” and won’t result in any detriment to travellers.
“We consider that the proposed cooperative conduct would likely result in several public benefits including providing enhanced products and services for air travellers which would include increased choice of international flights, with additional connectivity, convenience and loyalty program benefits for consumers,” ACCC Commissioner Anna Brakey said.
The partnership still remains subject to final regulatory approvals by the ACCC and the watchdog will seek feedback on this proposal before making its final decision.
The ACCC allowed Virgin and Qatar to sell tickets for these services in November 2024.
Flights are booked through Virgin, but passengers will be flown on Qatar Airways Boeing 777 planes.
Customers who have already booked tickets for the new routes will be either refunded or re-accommodated with no extra charge if the ACCC does not grant approval.
“We consider that 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,” Brakey added.
“In those circumstances, we do not consider that there is likely to be a material detrimental impact on the Australian aviation workforce as a result of the conduct.”
The ACCC is set to make its final decision on the alliance after draft submissions close on March 7 and the new flights are set to take off from June.
