ACCC approves Virgin-Qatar Airways alliance
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The news: The competition regulator has granted approval to an alliance between Virgin Australia and Qatar Airways, paving the way for a doubling of flights between Doha and major Australian airports.
The numbers: The Australian Competition and Consumer Commission (ACCC) said it has granted authorisation for a five-year integrated alliance between the two airlines.
Under the deal, the airlines will commence 28 new weekly return services between Doha and the major airports in Sydney, Melbourne, Brisbane and Perth. Virgin Australia will use Qatar Airways’ aircraft and crew to operate the new services under a ‘wet lease’ arrangement.
The context: The regulator said the alliance is likely to result in public benefits such as adding additional capacity on flights between Australia and the Middle East and result in minimal, if any, public detriment.
“This will likely place downward price pressure on these routes and will also give customers of Virgin Australia and Qatar Airways a greater choice of international flights with additional connectivity and loyalty program benefits,” ACCC Commissioner Anna Brakey said in a statement on Friday.
The ACCC had granted interim authorisation to the alliance in November to enable the marketing and sale of the new Australia-Doha services to begin, with flights scheduled to commence from June 2025. Meanwhile, Qatar Airways' acquisition of a 25% interest in Virgin Australia was approved by Treasurer Jim Chalmers late last month.
The source: ACCC media release
