Virgin Australia, Qatar Airways Alliance Approved by ACCC, Awaits Final Regulatory Nod

February 18, 2025
Virgin Australia, Qatar Airways Alliance Approved by ACCC, Awaits Final Regulatory Nod
  • Virgin Australia has secured approval from the Australian Competition and Consumer Commission (ACCC) to partner with Qatar Airways for long-haul flights, pending final regulatory confirmation.

  • This partnership will enable Virgin Australia to operate 28 new weekly return flights between Doha and major Australian cities, including Perth, Brisbane, Sydney, and Melbourne.

  • ACCC Commissioner Anna Brakey emphasized that the alliance is expected to enhance public benefits, such as increased flight choices and improved connectivity for travelers.

  • Currently, Virgin Australia only operates international flights to Indonesia, Fiji, and Vanuatu, following its insolvency during the COVID-19 pandemic.

  • The ACCC dismissed concerns regarding the potential impact on local jobs, noting that Virgin is unlikely to independently launch long-haul services in the next five years.

  • However, Qantas has raised alarms about the partnership, arguing that employing Qatar Airways staff could undermine Australian jobs and has called for limitations on wet leases.

  • The final ruling from the ACCC is expected in early 2025, with a deadline for public feedback set for March 7, 2025.

  • In addition to ACCC approval, the partnership also requires the consent of Federal Treasurer Jim Chalmers and the International Air Services Commission.

  • The ACCC previously rejected Qantas' claims that the wet lease arrangement would violate the bilateral air services agreement between Australia and Qatar.

  • Despite operational challenges, the ACCC has reported a positive outlook for Australia's domestic aviation industry, with decreasing airfares and rising passenger numbers.

  • The Transport Workers' Union has urged Virgin Australia to maintain commitments to job security and employee rights amid concerns regarding Qatar Airways' human rights record.

  • A Virgin Australia spokesperson expressed optimism about the partnership, highlighting its potential benefits for Australian travelers, tourism, job creation, and freight exports.

Summary based on 4 sources


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Sources

Green light for major airline shake-up

news.com.au — Australia’s leading news site • Feb 18, 2025

Green light for major airline shake-up

More flights on horizon as airline deal set to take off

ACCC snubs Qantas pleas over Virgin, Qatar deal

The West Australian • Feb 18, 2025

ACCC snubs Qantas pleas over Virgin, Qatar deal

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