Virgin Australia and Qatar Airways Alliance Gains ACCC Support

Australia’s competition regulator, the ACCC, has proposed allowing Virgin Australia and Qatar Airways to jointly operate flights between Doha and four major Australian cities for five years. This draft determination follows the ACCC’s interim approval in November for Virgin Australia to market and sell 28 weekly return flights connecting Doha with Brisbane, Melbourne, Perth, and Sydney.

ACCC Commissioner Anna Brakey highlighted that the proposed alliance would benefit the public by enhancing travel options, improving connectivity, and offering better loyalty program benefits for international travelers. Virgin Australia, the main domestic competitor to Qantas Airways, aims to strengthen its international presence through this partnership. Qantas currently maintains a rival partnership with Emirates.

Qatar Airways is also awaiting approval to acquire a 25% stake in Virgin Australia from Bain Capital, which could occur as Virgin prepares for a public listing after more than four years. The ACCC is seeking feedback on the draft decision before finalizing its ruling by March or April.

The proposed partnership is expected to increase competition in the Australian aviation market, offering travelers more flight choices and conveniences. The potential investment by Qatar Airways could further bolster Virgin Australia's market position. The ACCC’s decision is anticipated to have significant implications for the future of air travel in Australia.

Virgin Australia, Qatar Airways, and Qantas have yet to comment on the draft determination. The ACCC’s final decision will shape the competitive landscape of international aviation in the region.