Virgin Australia and Qatar Airways Secure ACCC Approval for New Alliance

Gustavo Roe

Virgin Australia First Boeing 737 MAX 8

The Australian Competition and Consumer Commission (ACCC) has granted a temporary authorization to Virgin Australia and Qatar Airways, facilitating participation in collaborative behavior within the framework of a unified alliance.

Additionally, the ACCC has accepted a court-enforceable undertaking from Virgin Australia and Qatar Airways regarding the behavior. With the provisional permission, both airlines have the possibility to begin marketing 28 weekly round-trip flights scheduled between Doha and Brisbane, Melbourne, Perth, and Sydney.

The new services will complement Qatar Airways’ existing operations. The airlines requested urgent authorization to allow Virgin Australia to start operating its new Australia-Doha services from Sydney, Melbourne, and Brisbane in June 2025, with services from Perth estimated to commence in November 2025.

«We consider that granting provisional authorization now will give Qatar Airways and Virgin Australia the necessary time to conduct planning, marketing, sales, and system alignment discussions in preparation for Virgin Australia to begin operating the new services in June 2025,» said Keogh Chair, ACCC Deputy Chair.

The new services will be provided under the final regulatory approval of the ACCC and other government entities. The commitment accepted by the ACCC ensures that, if final regulatory approval is not ultimately granted, customers who have booked these proposed new services will be protected.

The ACCC has not reached a definitive decision regarding the authorization request. The parties argue that the agreements will generate public benefits in terms of optimized products and services. This includes an increase in capacity between Qatar and Sydney, Melbourne, Brisbane, and Perth. The ACCC must evaluate the benefits and balance them against potential public harm to make a final decision.

According to the proposed agreements, Virgin Australia would use Qatar Airways aircraft and equipment to operate the new services via Wet Lease.

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