ACCC gives nod for Virgin Australia and Qatar Airways alliance set to double flights to middle eastern travel hub

The competition regulator has given the green light for a partnership between Virgin Australia and Qatar Airways, set to double flights over five years.

A partnership between Virgin Australia and Qatar Airways has been given the go-ahead by the competition watchdog, doubling flights between Doha and Australia for the next five years.

Under the new alliance, 28 new weekly return services will operate between Qatar’s capital and major airports in Sydney, Brisbane and Perth from June 2025, and Melbourne from December 2025.

The flights will open up more than 100 connecting itineraries across Europe, the Middle East and Africa through Hamad International Airport in Doha.

The partnership will double the number of flights between Doha and Australia over the next five years. Picture: Wikipedia/Supplied

The Australian Competition and Consumer Commission (ACCC) gave the green light for the partnership on Friday, which will involve Virgin Australia using Qatar Airways’ aircraft and crew to operate the new services under a “wet lease” agreement.

The move is expected to generate $3 billion for the economy over the next five years.

ACCC commissioner Anna Brakey said the public would reap the benefits of the partnership.

“This will likely place downward price pressure on these routes and will also give customers of Virgin Australia and Qatar Airways a greater choice of international flights with additional connectivity and loyalty program benefits,” she said.

Ms Brakey said while most parties were in favour of the alliance, some concerns were flagged during the drafting stage.

“Some interested parties raised concerns that the wet lease arrangement undercuts Australian aviation jobs,” she said.

A “wet lease” agreement will allow Virgin Australia to use Qatar Airways’ aircraft and crew to operate new services. Picture: Supplied/Qatar

The commissioner said it was not likely, however, to have a “material detrimental impact” on the workforce.

“We consider it unlikely that Virgin Australia or any other Australian airline would commence operating Australia-Doha services on a stand-alone basis in the next five years, even if the conduct was not authorised,” Ms Brakey said.

On the contrary, a joint statement released by Virgin Australia said the partnership would support jobs growth across the aviation and tourism sectors.

“Qatar Airways (is) set to provide secondment opportunities for 20 Virgin Australia pilots and 40 cabin crew in 2025,” the statement read.

While concerns were raised about Virgin Australia’s ability to partner with other airlines, the watchdog said the airline’s services to and from Europe, the Middle East and Africa would remain unchanged.

Virgin Australia CEO Dave Emerson said the partnership reflected a “huge vote of confidence” from Qatar Airways.

“Already, we are seeing some of the positive benefits of the partnership, including increased sale activity on airfares between Australia and Europe, the Middle East and Africa thanks to increased competition,” he said.

Qatar Airways CEO Badr Mohammed Al-Meer thanked Virgin Australia for its dedication to creating “healthy competition” within the local market.

“(Friday’s) announcement by the ACCC sends a clear signal of the appetite that exists for delivering competition, world-class service and value to Australian passengers,” he said.

The alliance comes one month after Qatar Airways bought a 25 per cent stake in Virgin Australia.

Originally published as ACCC gives nod for Virgin Australia and Qatar Airways alliance set to double flights to middle eastern travel hub