In a move that will allow CE retailers travelling to trade shows and meeting in Europe and North America to have more options beyond Singapore and Dubai for a stopover, the Australian Competition and Consumer Commission (ACCC) has issued preliminary approval for Virgin Australia to operate joint flights with Qatar Airways between several key cities in the country and Doha.
The authorisation will allow the two airlines to engage in an integrated alliance for five years where Virgin Australia, in partnership with Qatar Airways, will commence 28 new weekly return services between Doha and Perth, Brisbane, Sydney and Melbourne.
The competition regulator termed the alliance as one that is “likely to result in public benefits” and also “unlikely to result in any public detriment.”
“We consider that Virgin Australia is unlikely to commence operating long-haul international services between Australia and the Middle East on a stand-alone basis in the next five years,” said ACCC Commissioner Anna Brakey.
“In those circumstances, we do not consider that there is likely to be a material detrimental impact on the Australian aviation workforce as a result of the conduct.”
Velocity Frequent Flyer members will continue to be able to earn and redeem Velocity points on Singapore Airlines-operated services globally, including to and from Europe, the Middle East and Africa. Virgin Australia’s arrangements with South African Airways and Virgin Atlantic would be unchanged.
The ACCC is still weighing through all the submissions and a final decision, likely to be in favour of the deal between the two airlines, is expected to follow over the next few weeks.
The ACCC granted interim authorisation to Virgin Australia and Qatar Airways on 29 November 2024 to allow them to commence marketing and selling the new Australia-Doha services.
Under the wet lease agreement between the two airlines, Virgin will also use Qatari crews and pilots along with Qatar Airways’ Boeing 777s.
Apart from the ACCC approval, the deal also requires the Foreign Investment Review Board to make a recommendation to Treasurer Jim Chalmers on whether to allow Qatar Airways to buy a 25% stake in Virgin from Bain Capital.
