The Australian Competition and Consumer Commission (ACCC) has allowed Virgin Australia to market and sell tickets for new Qatar Airways-operated flights between Doha and four Australian capital cities.
Qatar Airways has recently said it was buying a 25 percent equity stake in Virgin Australia from Bain Capital. The airline had gone bankrupt during the pandemic before it was rescued by Bain Capital. The acquisition is still awaiting final regulatory approvals in Australia.
It plans to get back to international long-haul routes, starting with 28 weekly scheduled return flights between Doha and Brisbane, Melbourne, Perth, and Sydney. Services between Doha and Sydney, Melbourne and Brisbane can start from June 2025, with Perth flights to follow in November next year. Virgin Australia will use Qatar Airways’ aircraft and crew to operate the service under a wet-lease arrangement.
Mick Keogh, ACCC deputy chair, said: “We consider that granting interim authorisation now will allow Qatar Airways and Virgin Australia the lead time to undertake the necessary planning…for Virgin Australia to commence flying the new services by June 2025.”
The authorisation makes it clear, though, that if final regulatory approval is ultimately not granted, then customers who have booked these proposed new services would be protected.
“Affected customers will be given the option of a refund or re-accommodation on a suitable alternative flight at no additional charge and would not be out of pocket for any reasonably foreseeable costs if these proposed new services ultimately don’t get approved,” Keogh said.
“Having this court-enforceable undertaking that protects customers was important to our decision to allow Virgin Australia and Qatar Airways to start selling tickets now.”
ACCC is still deliberation on regulatory approval to the Qatar Airways deal.
The parties argue the arrangements will result in public benefits in the form of enhanced products and services. This includes increased capacity between Qatar and each of Sydney, Melbourne, Brisbane and Perth. The ACCC is required to assess the benefits, and weigh them against any possible public detriments in reaching a final decision.
Australian national carrier Qantas has a partnership with Emirates and had previously lobbied against the Qatar Airways’ request to fly additional routes last year.
In the last week of October, Qantas Group said: “The Group welcomes competition, and internationally we compete with more than 50 carriers, which drives us to innovate, invest and ultimately deliver a better experience for our customers.
“The Qantas Group doesn’t object to the investment in Virgin Australia by Qatar Airways, however there are some aspects of the partnership that may result in a public detriment that deserve further scrutiny. In particular, given the Proposed Conduct is going to occur through a wet lease, its potential to impact competition in the sector over the long term should be assessed.”
