ACCC proposes to greenlight Virgin, Qatar strategic alliance

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[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1739839854737{margin-top: 15px !important;margin-bottom: 15px !important;}”]The Australian Competition and Consumer Commission (ACCC) has confirmed it intends to give the green light to the cooperative alliance between Virgin Australia and Qatar Airways for a five-year period.

Although still subject to final regulatory approvals, the competition watchdog’s proposal to grant authorisation to the strategic tie-up will see the two airlines collaborate on 28 new weekly return services between Doha and four Australia cites – Perth, Brisbane, Sydney and Melbourne.

Under the proposed agreement, Virgin Australia would operate the new services using Qatar Airways’ aircraft and crew, under a ‘wet lease’ arrangement.

“We consider that the proposed cooperative conduct would likely result in several public benefits including providing enhanced products and services for air travellers, which would include increased choice of international flights, with additional connectivity, convenience and loyalty program benefits for consumers,” ACCC Commissioner Anna Brakey said.

The airlines have already begun marketing and selling the new Australia-Doha routes under interim authorization granted by the ACCC in November last year.

If final regulatory approvals are not granted, both airlines have agreed to offer refunds or re-accommodation at no extra charge.

While some stakeholders have raised concerns regarding the impact on Australian workforce laws, particularly the use of Qatar-based crew, the ACCC said it believed the proposed alliance would not significantly harm the Australian aviation workforce.

“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,” Brakey stressed.

The ACCC is now seeking public feedback on its draft determination, with submissions due by 7 March 2025, before making its final decision.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_separator css=”.vc_custom_1605829606612{margin-bottom: 10px !important;}”][vc_column_text css=”.vc_custom_1605829610747{margin-bottom: 10px !important;}”]

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