The Australian Competition and Consumer Commission (ACCC) has granted interim authorisation allowing Virgin Australia (VA, Brisbane International) and Qatar Airways (QR, Doha Hamad International) to start marketing and selling an additional 28 weekly scheduled return flights between Doha and Brisbane, Melbourne Tullamarine, Perth International, and Sydney Kingsford Smith over and above what Qatar Airways already operates.
Virgin Australia intends to start flying its new Australia-Doha services from Sydney, Melbourne, and Brisbane in June 2025 using aircraft wet leased from Qatar Airways, with Perth services to follow in November. The wet leases are part of a broader proposed relationship that will see Qatar take a 25% stake in Virgin Australia.
Qatar Airways is currently operating the maximum number of weekly flights allowed to Australia under the existing bilateral air services agreement. Virgin already codeshares on these flights and other Qatar services beyond Doha. A bid by Qatar Airways to secure additional flights to Australia last year was unsuccessful, and the current proposal is viewed as a tidy sidestep to these obstacles.
"The ACCC’s interim authorisation is a significant milestone that reflects the strong consumer and broader public benefits of the integrated alliance," said Virgin Australia's chief strategy and transformation officer, Alistair Hartley.
”We consider that 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,” said the commission's deputy chair, Michael Keogh, when announcing the interim approval on November 29.
"We are pleased to be helping Virgin Australia launch these new services to Qatar and creating further business opportunities for our travel trade partners," said Qatar Airways' chief commercial officer Thierry Antinori. "We will continue working closely with Virgin Australia to progress the remaining regulatory approvals."
A public consultation process resulted in 27 submissions. The partnership was broadly supported by the travel industry and airports, which welcomed the prospect of the additional capacity, while aviation labour groups raised concerns about 100% Qatari crews operating what would be Virgin Australia flights.
"The proposed acquisition and wet lease raise significant concerns about the fairness of competition, the integrity of Australia's bilateral air services agreements, and the broader implications for the Australian aviation workforce and industry," says the submission from the Australian and International Pilots Association.
"Our view is that this investment and the proposed wet leasing of Qatar Airways aircraft to enable Virgin Australia to recommence long-haul international flying will have a positive impact through increased competition and flight capacity which will put downward pressure on airfares," a submission from the Council of Australian Tour Operators says.
“We are carefully considering the concerns that interested parties have raised, particularly around the wet-lease arrangements and the impact of the proposed exclusivity arrangements between Virgin Australia and Qatar Airways," said Keogh.
The ACCC says the new services will be offered subject to final regulatory approval. However, its interim authorisation usually results in a final authorisation, which would be valid for five years. Qatar's proposed investment in Virgin also remains subject to approval from Australia's Foreign Investment Review Board.
