Australia grants preliminary approval for Virgin Australia-Qatar Airways Alliance

SYDNEY- On November 29, 2024, the Australian Competition and Consumer Commission (ACCC) granted Virgin Australia (VA) and Qatar Airways (QR) interim approval allowing them to work together as part of an integrated alliance.

This approval will allow the two airlines to market and sell 28 weekly return flights between Doha and the Australian cities of Sydney, Melbourne, Brisbane and Perth from June 2025.

In addition, the ACCC’s decision also imposes a court-enforceable obligation on both airlines to protect customers if final regulatory approvals are not granted.

Expanded services on the horizon

As part of the integrated alliance, Virgin Australia will launch new flights to Doha using Qatar Airways aircraft and crew under wet lease arrangements.

Flights from Sydney, Melbourne and Brisbane are scheduled to begin in June 2025, with flights to Perth following in November 2025. In addition to these new flights, Qatar Airways’ existing international flights will also continue.

“The granting of interim approval will now give Qatar Airways and Virgin Australia the necessary lead time to undertake the necessary planning discussions, marketing, sales and systems adjustments to prepare Virgin Australia to fly the new services by June 2025.”

ACCC Deputy Chairman Keogh.

Consumer protection measures in place

The court-enforceable obligation also ensures that affected customers will receive a refund or be rebooked on alternative flights at no additional cost in the event of denial of final approval.

“This legally enforceable commitment to protect customers was important to our decision to now allow Virgin Australia and Qatar Airways to sell tickets,” Mr Keogh added.

Although provisional approval has been granted, the ACCC has not yet made a final decision on the approval. The airlines argue that the alliance will increase public benefits, including increased capacity and improved services between the two countries and beyond.

However, the ACCC is considering concerns raised by stakeholders, particularly in relation to the proposed wet lease and exclusivity arrangements.

The ACCC is expected to publish a draft decision in February 2025 requiring airlines to apply for five-year approval for their partnership.

Loyalty programs not affected

The integrated alliance will have no impact on Virgin Australia’s agreements with Singapore Airlines, South African Airways or Virgin Atlantic.

However, the proposed services are subject to final regulatory approval by the ACCC and other government agencies to ensure all aspects of the partnership comply with Australian aviation and competition standards.

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