ACCC considers authorizing alliance between Virgin Australia and Qatar Airways

Qatar Airways had previously announced its intention to acquire a 25% stake in Virgin Australia as part of expanding their current partnership. This includes introducing wet lease services expected to launch in mid-2025.

Anna Brakey, Commissioner of the ACCC, expressed confidence in the potential public benefits of this partnership, stating that it could enhance products and services for travelers without causing any public detriment. Since November 29, 2024, following interim authorization by the ACCC, Virgin Australia and Qatar Airways have been able to market and sell these services.

The commission took steps to protect consumers by securing a court-enforceable undertaking from both airlines. This ensures that if necessary approvals are not granted, customers will be offered refunds or re-accommodation on alternative flights at no extra charge.

However, some stakeholders have raised concerns regarding workforce laws and regulations potentially being circumvented due to using Qatar-based crews without time limits. Brakey responded by noting that with Virgin Australia's current operational constraints on long-haul services independently over the next five years, there should not be significant negative impacts on Australian flight crews.

The ACCC has invited comments from stakeholders about this draft proposal until March 7. This partnership would allow Virgin Australia to expand its operations while enabling Qatar Airways to increase capacity between Doha and Australia—a move previously blocked by the Australian government in July 2023.

Virgin Australia's collaboration with Qatar Airways represents an important step toward resuming long-haul international flights using Qatari aircraft and crews. Meanwhile, Qatar Airways continues its scheduled operations with numerous weekly flights connecting Doha with various Australian destinations.