SYDNEY – On 29th November 2024, the Australian Competition and Consumer Commission (ACCC) granted interim authorization to Virgin Australia (VA) and Qatar Airways (QR), permitting them to collaborate under an integrated alliance.
This authorization enables the two carriers to market and sell 28 weekly return flights between Doha and Australian cities – Sydney, Melbourne, Brisbane, and Perth, starting in June 2025.
Moreover, the ACCC’s decision also includes a court-enforceable undertaking from both airlines to protect customers should the final regulatory approvals not be granted.
Expanded Services on the Horizon
Under the integrated alliance, Virgin Australia will launch new flights to Doha using Qatar Airways aircraft and crew through “wet lease” arrangements.
Flights from Sydney, Melbourne, and Brisbane are scheduled to begin in June 2025, with Perth services following in November 2025. Qatar Airways’ existing international services will also continue alongside these new operations.
“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 in preparation for Virgin Australia to commence flying the new services by June 2025.”
ACCC Deputy Chair Keogh.
Consumer Protections in Place
The court-enforceable undertaking also ensures that if final authorization is denied, affected customers will be refunded or rebooked on alternative flights without additional costs.
“Having this court-enforceable undertaking that protects customers was important to our decision to allow Virgin Australia and Qatar Airways to start selling tickets now,” Mr. Keogh added.
While interim approval has been granted, the ACCC has not reached a final decision on the authorization. The carriers argue the alliance will enhance public benefits, including increased capacity and improved services between the two countries and beyond.
However, the ACCC is assessing concerns raised by stakeholders, particularly regarding the proposed wet lease and exclusivity arrangements.
The ACCC is expected to release a draft determination in February 2025, with the airlines seeking a five-year authorization for their partnership.
Loyalty Programs Unaffected
The integrated alliance will not impact Virgin Australia’s arrangements with Singapore Airlines, South African Airways, or Virgin Atlantic.
However, the proposed services are subject to final regulatory approval by the ACCC and other government bodies, ensuring that all aspects of the partnership meet Australian aviation and competition standards.
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