ACCC grants interim authorisation to Virgin Australia and Qatar Airways
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The news: The Australian Competition and Consumer Commission (ACCC) has granted interim authorisation to Virgin Australia and Qatar Airways, allowing them to sell flights between Australia and Doha under an integrated alliance.
The numbers: Under the interim authorisation Virgin Australia and Qatar Airways can commence marketing and selling 28 weekly scheduled return flights between Doha and Brisbane, Melbourne, Perth and Sydney.
The context: The airlines sought urgent interim authorisation to enable Virgin Australia to start flying its new Australia-Doha services from Sydney, Melbourne and Brisbane in June 2025, with Perth services to follow in November 2025.
The new services will be in addition to the international services already operated by Qatar Airways, and will be offered subject to final regulatory approval by the ACCC and other government bodies.
The ACCC has also accepted a court enforceable undertaking from Virgin Australia and Qatar Airways in relation to the conduct.
However, the regulator has not reached any final conclusion on the application for authorisation. The two airlines argue the arrangements will result in public benefits in the form of increased capacity between Qatar and each of Sydney, Melbourne, Brisbane and Perth.
The ACCC is expected to release a draft determination in February 2025.
What they said: "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," ACCC deputy chair Mick Keogh said.
"Affected customers will be given the option of a refund or re-accommodation on a suitable alternative flight at no additional charge and would not be out of pocket for any reasonably foreseeable costs if these proposed new services ultimately don’t get approved."
The source: ACCC media release
