ACCC Proposes to Approve Virgin Australia-Qatar Airways Alliance

white and red virgin australia airplane mid air under blue and white sky during daytime

The Australian Competition and Consumer Commission (ACCC) has announced its proposal to authorise an integrated alliance between Virgin Australia and Qatar Airways for five years, allowing the airlines to cooperate on new international routes.

The agreement would see Virgin Australia operate 28 new weekly return flights between Doha and major Australian cities—Perth, Brisbane, Sydney, and Melbourne—using Qatar Airways’ aircraft and crew under a “wet lease” arrangement.

ACCC Commissioner Anna Brakey stated the proposal is expected to bring public benefits, including increased flight options, improved connectivity, and enhanced loyalty program benefits for passengers. The commission has not identified any significant public detriment.

However, some stakeholders have raised concerns about the impact on Australian aviation jobs, arguing that the use of Qatar-based crew could undermine local workforce regulations. The ACCC maintains that Virgin Australia is unlikely to launch standalone Middle East services in the near future, suggesting minimal impact on the domestic aviation workforce.

The commission is now seeking public feedback on its draft determination, with submissions open until 7 March 2025. A final decision will follow after regulatory approvals are considered.

Source: https://www.accc.gov.au/media-release/accc-proposes-to-authorise-virgin-australia-and-qatar-airways-integrated-alliance

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