Virgin Australia gains ACCC nod for partnership with Qatar Airways

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Virgin Australia gains ACCC nod for partnership with Qatar Airways

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Simple Flying | Simple Flying

By Sky Industry News

Nov 29, 2024

Virgin Australia is set to re-enter the long-haul international market with the help of Qatar Airways. The Australian Competition and Consumer Commission (ACCC) has granted interim approval for an alliance between the two airlines, allowing Virgin Australia to begin selling tickets for flights between Australia and Doha using Qatar Airways aircraft and crews.

The ACCC's interim approval permits Virgin Australia and Qatar Airways to market and sell 28 weekly return flights connecting Doha with Brisbane, Melbourne, Perth, and Sydney. These new services will complement existing Qatar Airways routes. Flights from Sydney, Melbourne, and Brisbane are scheduled to start in June 2025, with Perth following in November 2025.

Virgin Australia and Qatar Airways have committed to refunding or providing alternative flights if final authorization is not granted. Last year, a request by Qatar Airways to operate these services independently was rejected by the Australian Government. This decision led Virgin Australia to utilize unused bilateral rights through a wet lease arrangement.

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Qatar Airways has expressed interest in acquiring a 25% minority stake in Virgin Australia. However, this proposal is still under review by Australia's Foreign Investment Review Board and remains separate from the current wet lease agreement.

The ACCC's interim decision outlines several cooperative measures between Virgin Australia and Qatar Airways. These include joint efforts in capacity deployment, scheduling, network planning, sales strategies, pricing cooperation for codeshare services, and reciprocal benefits for loyalty program members.

The airlines aim to launch these new services by June 2025 to coincide with peak travel periods between Australia and Europe. They plan to include these flights in schedules for the IATA Northern Summer 2025 season by December 24, 2024.

Mick Keogh, ACCC Deputy Chair, stated: "We consider that granting interim authorization 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."

The airlines have also pledged to explore opportunities for direct entry pathways for Virgin Australia's crew into Qatar Airways as part of their collaboration on long-haul international flying capabilities.

Until a final decision is made by February 2025, any tickets sold must indicate they are 'subject to regulatory approval.' The ACCC has emphasized that its interim decision does not guarantee final authorization but suggests potential approval for a five-year period requested by both airlines.