Australia’s consumer watchdog, the Australian Competition and Consumer Commission (ACCC), has given provisional approval for a five-year “integrated alliance” between two major airlines, Virgin Australia and Qatar Airways. This partnership allows Virgin to lease Qatar planes under a “wet lease” agreement, facilitating new international routes.
Qatar Airways had sought to double its weekly flights to key Australian cities, including Sydney, Melbourne, Brisbane, and Perth, but faced government rejection earlier in 2023. The ACCC believes this alliance will enhance service offerings for travellers, leading to increased flight options and benefits associated with loyalty programmes, ultimately serving the public interest.
While final regulatory approvals are pending, the ACCC will consider feedback before making a conclusive decision, expected after submissions close on March 7. The airlines anticipate launching these new routes in June 2024, enabling Virgin to sell tickets for flights operated by Qatar’s Boeing 777 aircraft. Should the proposal not gain final approval, customers who have already booked will be either refunded or re-accommodated at no extra charge.
The ACCC noted that Virgin is unlikely to independently establish long-haul international services to the Middle East within the next five years, suggesting that the deal will not adversely affect the Australian aviation workforce.