Australia gives interim nod to Qatar Airways-Virgin deal

Qatar Airways/X

The Australian Competition and Consumer Commission (ACCC) has granted interim approval for a partnership between Qatar Airways and Virgin Australia, which allows them to sell long-haul return flights starting in June 2025.

The temporary approval will allow Virgin Australia to fly 28 weekly return flights between Doha and Brisbane, Melbourne, Perth and Sydney.

The Australia-Doha services from Sydney, Melbourne and Brisbane will be launched in June 2025, with Perth following in November 2025.

“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.

The new services, subject to final regulatory approval, will be in addition to the international services already operated by Qatar Airways.

The partnership will see Virgin Australia operating the routes under a “wet-lease” arrangement, utilising Qatar Airways’ aircraft and crew.

“We are carefully considering the concerns that interested parties have raised, particularly around the wet-lease arrangements,” Keogh said.

However, the interim approval safeguards customers who pre-book flights, ensuring their bookings remain protected even if final approval is not granted.

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The airlines are seeking five-year authorisation, with the ACCC expected to release a draft determination in February 2025.

In October, Qatar Airways said it would acquire a minority 25 percent stake in Virgin Australia from the US private equity firm Bain Capital.

The state-run airline owns minority stakes in British Airways owner IAG, Hong Kong’s Cathay Pacific Airways and China Southern Airlines.

Qatar Airways’ Virgin Australia share purchase could be seen as a bold move, John Grant, a partner at UK consultancy Midas Aviation, wrote in AGBI.