The Australian Competition and Consumer Commission (ACCC) has given the green light to a significant alliance between Virgin Australia and Qatar Airways.
The approval by the consumer watchdog formally authorises a five-year collaborative agreement.
This partnership is set to dramatically increase flight frequency between Doha and Australia’s major cities, promising increased travel options for consumers.
Return Services Between Doha and Australian Capitals
The core of this alliance involves the introduction of 28 new weekly return services. These will connect Doha with Sydney, Melbourne, Brisbane, and Perth.
To facilitate this expansion, Virgin Australia will utilize Qatar Airways’ aircraft and crew under a “wet lease” arrangement. The arrangement effectively doubles the current flight capacity. These new services will operate alongside Qatar Airways’ existing international routes.
ACCC Commissioner Anna Brakey highlighted the potential benefits of this collaboration. “We consider that the conduct is likely to result in public benefits such as adding additional capacity on flights between Australia and the Middle East.”
‘It is likely to result in minimal, if any, public detriment,” Brakey concluded. This increased capacity is expected to place downward pressure on ticket prices, offering more affordable travel options for Australians.
Furthermore, the alliance will provide customers of both airlines with a broader selection of international flights. It will also see improved connectivity, and enhanced loyalty program benefits.
This translates to greater flexibility and convenience for travellers, allowing them to seamlessly connect to a wider network of destinations.
ACCC Authorisation Process
The ACCC’s decision follows a draft determination released on February 18, 2025, which proposed granting authorisation.
The majority of submissions from interested parties supported the alliance. However, some raised concerns regarding the wet lease arrangement and its potential impact on Australian aviation jobs.
However, the ACCC addressed these concerns and allayed fears. “We consider it unlikely that Virgin Australia or any other Australian airline would commence operating Australia-Doha services on a stand-alone basis in the next five years, even if the conduct was not authorised.”
The commission concluded that the alliance is unlikely to have a significant detrimental effect on the Australian aviation workforce.
Additionally, some parties expressed concern that the partnership could limit Virgin Australia’s ability to form alliances with other airlines.
Notably, the applicants did not seek authorization for proposed exclusivity arrangements. This would have made them exclusive interline, codeshare, and loyalty partners.
Despite this, the ACCC considered the potential impact of these exclusivity arrangements. “We concluded that the overall impact of the exclusivity arrangements on consumers is likely to be minimal,” explained Commissioner Brakey. This assessment is based on the fact that Velocity Frequent Flyer members will continue to earn and redeem points on Singapore Airlines flights, including those to and from Europe, the Middle East, and Africa.
Furthermore, Virgin Australia’s existing partnerships with other airlines serving these regions, with the exception of the more limited partnership with Etihad Airways, will remain unchanged.
Conclusion
To facilitate the timely launch of these new services, scheduled to commence in June 2025, the ACCC granted interim authorization to Virgin Australia and Qatar Airways on November 29, 2024.
This interim authorisation allowed the airlines to begin marketing and selling the new Australia-Doha flights, ensuring a smooth transition until the final determination took effect.
The ACCC’s final approval of this alliance signals a significant expansion of air travel options for Australians. It promises increased flight frequency, competitive pricing, and enhanced customer benefits.
While concerns regarding job impacts and exclusivity were raised, the commission’s careful evaluation suggests that the overall public benefits outweigh potential detriments.
This partnership is now set to reshape the landscape of travel between Australia and the Middle East, offering a wider range of choices for consumers.
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