The Australian Competition and Consumer Commission (ACCC) has approved Virgin Australia and Qatar Airways’ request to form a five-year integrated alliance, allowing the two airlines to cooperate more closely.
Under the new agreement, the airlines will significantly increase the frequency of flights between Doha and key Australian cities. This includes 28 additional weekly return flights to Sydney, Melbourne, Brisbane, and Perth. Virgin Australia will operate these new routes using Qatar Airways’ aircraft and crew under a “wet lease” arrangement.
These additional services will supplement the current international flights already run by Qatar Airways.
ACCC Commissioner Anna Brakey stated that the alliance is expected to bring public benefits, including increased flight capacity between Australia and the Middle East, and minimal public harm. She added that the arrangement is likely to lower prices on these routes and provide customers with more flight options, improved connectivity, and additional benefits through loyalty programs.
This announcement follows an interim authorization granted in November 2024, which allowed the airlines to begin marketing and selling the new Australia-Doha services. A draft determination was also released in February.
Most submissions from stakeholders after the draft determination supported the alliance, though some raised concerns about the wet lease arrangement potentially affecting Australian aviation jobs.
Brakey responded to these concerns, saying it is unlikely that Virgin Australia or any other Australian airline would launch direct services between Australia and Doha on their own in the next five years, even without the alliance.
She further noted that the alliance is unlikely to negatively impact the Australian aviation workforce in a significant way.
Some parties also expressed worries that the deal could limit Virgin Australia’s ability to partner with other airlines. However, the applicants did not seek approval for proposed exclusivity arrangements that would make them exclusive interline, codeshare, and loyalty partners in the Middle East and Australia.
While these exclusivity arrangements were not part of the approval request, the ACCC examined whether they would negatively affect consumers. Brakey concluded that the overall impact on consumers would likely be minimal. She emphasized that Virgin Australia’s frequent flyer program, Velocity, would still allow members to earn and redeem points with Singapore Airlines on global services, including flights to Europe, the Middle East, and Africa.
Brakey also stated that Virgin Australia’s existing partnerships with other airlines, including those to and from Europe, the Middle East, and Africa, would remain unchanged, except for the more limited partnership with Etihad Airways in recent years.
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