Australia likely to approve Qatar Airways-Virgin deal

The Australian Competition and Consumer Commission (ACCC) is leaning towards approving a five-year deal between Qatar Airways and Virgin Australia, allowing them to sell long-haul return flights starting in June, the watchdog said.

The approval, if granted, will allow the two airlines to commence 28 new weekly return flights between Doha and Perth, Brisbane, Sydney and Melbourne.

Under a “wet lease”, Virgin Australia will use Qatar Airways’ aircraft and crew to operate the new services.

“The proposed cooperative conduct is likely to result in public benefits and is unlikely to result in any public detriment,” the competition watchdog said in a statement on Tuesday.

Competitors Dubai-based Emirates and Qantas have a long-standing code-sharing agreement.

ACCC commissioner Anna Brakey said the deal would enhance international travel options by increasing flight choices, improving connectivity and convenience, while offering loyalty program benefits.

The new air services remain subject to final regulatory approvals by the ACCC and other government entities.

The ACCC is now seeking feedback on the draft determination before it makes a final decision on March 7.

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In November 2024 the ACCC granted interim approval for a partnership between Qatar Airways and Virgin Australia to enable them to commence marketing and selling the new Australia-Doha services.

However, concerns have been raised that the proposed deal will circumvent Australian workforce laws and regulations, mainly because of the lack of time limits on using Qatar-based crew, which will negatively affect local aviation jobs.

“We consider that Virgin Australia is unlikely to commence operating long-haul international services between Australia and the Middle East on a standalone basis in the next five years,” Brakey said.

“In those circumstances, we do not consider that there is likely to be a material detrimental impact on the Australian aviation workforce.”