The Australian Competition and Consumer Commission (ACCC) has granted approval for an integrated alliance between Virgin Australia and Qatar Airways, marking a significant development in international air travel.
This five-year alliance will double the frequency of flights between Doha and key Australian airports, enhancing connectivity and expanding options for travellers.
The agreement will add 28 supplementary weekly return services between Doha and Sydney, Melbourne, Brisbane, and Perth, with Virgin Australia utilizing Qatar Airways’ aircraft and crew under a wet lease arrangement.
These upcoming routes will complement Qatar Airways' existing international services, substantially increasing capacity on the Australia-Middle East corridor.
ACCC Commissioner Anna Brakey highlighted the public benefits of the alliance. These benefits include increased flight availability, downward pricing pressure on these routes, and enhanced connectivity for both airlines' customers. The partnership also strengthens loyalty program benefits, offering more travel opportunities for members.
The ACCC’s draft determination issued in February received majority support from stakeholders. However, concerns were raised about potential impacts on Australian aviation jobs due to the wet lease model.
Addressing these concerns, Brakey emphasised that it is unlikely that Virgin Australia or other domestic airlines will operate Australia-Doha routes independently within the next five years, mitigating fears of workforce displacement.
Critics also questioned whether the alliance’s proposed exclusivity arrangements could limit Virgin Australia’s ability to partner with other airlines. However, these exclusivity clauses were not part of the authorised conduct. The ACCC concluded that consumer impacts would likely be minimal, as Virgin Australia’s broader airline partnerships remain unaffected, aside for its reduced collaboration with Etihad Airways.
Virgin Australia’s Velocity Frequent Flyer members will continue to earn and redeem points across various partner airlines, including Singapore Airlines. This will ensure loyalty benefits on global routes remain intact.
The ACCC believes that the alliance will create significant competition benefits, making international travel more accessible while maintaining flexibility for Australian travellers.
Interim approval for the alliance was granted in November 2024, allowing marketing and ticket sales to commence ahead of the upgraded services’ launch in June 2025.
This interim arrangement will remain in place until the final determination takes effect. This will provide a seamless transition to the expanded network rollout.
For investors, the alliance signals a stronger market position for Virgin Australia as it leverages Qatar Airways' global reach and robust infrastructure. By increasing access to the Middle Eastern and European markets, the partnership aligns with global trends in air travel growth and connectivity.
Further details of the ACCC’s decision and the alliance are available on the ACCC’s public register. This reflects transparency and regulatory oversight in one of Australia’s most significant aviation developments in recent years.