Australia’s competition watchdog has backed a new alliance between Virgin Australia and Qatar Airways, stating it will likely result in public benefits and is unlikely to result in any public detriment.
The Australian Competition and Consumer Commission (ACCC) granted interim authorisation to Virgin Australia and Qatar Airways in November 2024, with this authorisation granting the two airlines permission to commence sales and marketing for 28 weekly scheduled return flights between Doha and Brisbane, Melbourne, Perth and Sydney.
Under the proposed wet lease arrangements, Virgin Australia will use Qatar Airways’ aircraft and crew to operate the new services.
This followed an announcement in October 2024 that Qatar Airways Group intended to acquire a minority 25% equity stake in Virgin Australia from Bain Capital.
“We consider that the proposed cooperative conduct would likely result in several public benefits including providing enhanced products and services for air travellers which would include increased choice of international flights, with additional connectivity, convenience and loyalty program benefits for consumers,” said ACCC commissioner Anna Brakey.
In a statement the ACCC stated that concerns have been raised with the competition watchdog over how the proposed cooperative conduct would circumvent Australian workforce laws and regulations, and that the lack of time limits on the use of Qatar-based crew to operate the new services will have negative implications for the Australian aviation workforce.
“We consider that Virgin Australia is unlikely to commence operating long-haul international services between Australia and the Middle East on a stand-alone basis in the next five years,” Brakey added.
A report from the ACCC recently found that Virgin Australia reported strong passenger demand growth throughout most of 2024. Compared to December 2023, the number of domestic passengers flown by Virgin Australia in December 2024 increased by 15.8%.
These new air services are subject to final regulatory approvals by the ACCC and other government bodies. The ACCC is now seeking feedback on this draft determination before it makes a final decision.