Virgin Australia, Qatar Airways to double flights between Australia and Doha as “integrated alliance” green-lit

Virgin Australia and Qatar Airways have been given the green light to double the number of flights between Doha and Australian airports over the next five years under a major partnership agreement. The corporate watchdog approved the airways to engage in cooperative conduct under an integrated alliance – with 28 new weekly services to run between airports in Sydney, Melbourne, Brisbane and Perth to the Qatar capital from June this year. Virgin Australia will use Qatar Airways’ aircraft and crew to operate the new services under a “wet lease” arrangement. The Australian Competition & Consumer Commission (ACCC) released a draft determination proposing to authorise the plan in February, before inviting submissions for and against the proposal. Some had raised concerns the wet lease arrangement would undercut aviation jobs in Australia. ACCC Commissioner Anna Brakey on Friday said the conduct was likely to result in benefits such as additional capacity on flights between Australia and the Middle East to “minimal, if any, public detriment”. “This will likely place downward price pressure on these routes and will also give customers of Virgin Australia and Qatar Airways a greater choice of international flights with additional connectivity and loyalty program benefits,” Ms Brakey said. Earlier this year, Qatar Airways Group purchased a 25 per cent minority stake in Virgin The ACCC determined it was “unlikely” Virgin or other Australian airlines would commence services to Doha on a stand-alone basis in the next five years. “As such, we consider it unlikely that the conduct will result in a material detrimental impact on the Australian aviation workforce,” Ms Brakey said. “Velocity Frequent Flyer members will continue to be able to earn and redeem Velocity points on Singapore Airlines services operated globally, including on services to and from Europe, the Middle East and Africa.” These arrangements involve both Virgin and Qatar becoming each other’s exclusive interline, codeshare and loyalty partners headquartered in the Middle East or Türkiye and in Australia, the ACCC said in a statement. Virgin Australia’s arrangements with other airlines on services to and from Europe, the Middle East and Africa will remain unchanged. Flights between Sydney and Doha are expected to commence from June 12. In 2023, a political storm erupted after the federal government blocked more flights from Qatar Airways – with the government arguing it was to “protect the national interest”. It led to Qatar Airways chief executive Akbar Al Baker branding the move “very unfair”.