The Australian Competition and Consumer Commission (ACCC) is proposing to grant authorisation to Virgin Australia and Qatar Airways to allow them to engage in cooperative conduct under an integrated alliance for five years.
This deal could make travelling between Australia, the Middle East and Europe easier and eventually cheaper.
If approved, the agreement would introduce new weekly return services between Doha, Perth, Brisbane, Sydney and Melbourne operated by Qatar Airways aircraft and crew under a ‘wet lease’ agreement.
“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 ACC is currently seeking feedback on its draft determination before making a decision.
The ACCC granted interim authorisation to Virgin Australia and Qatar Airways on 29 November to enable them to commence marketing and selling the new Australia-Doha services,
A number of interested parties have raised concerns with the ACCC that the proposed plan would circumvent Australian workforce laws and regulations and that the lack of time limits on the Qatar crew could have negative implications for the Australian aviation workforce.
Brakey said it is unlikely that Virgin Australia would commence operating long-haul international services between Australia and the Middle East on a stand-alone basis in the next five years.
“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,” she said.
