Australia’s competition watchdog has given provisional approval for an alliance between Virgin Australia and Qatar Airways.
The two airlines can start marketing and selling 28 weekly scheduled return flights between Doha and Brisbane, Melbourne, Perth and Sydney under the interim authorisation by the Australian Competition & Consumer Commission.
The new services will be in addition to the international flights already operated by Qatar Airways.
The airlines sought urgent interim authorisation to enable Virgin Australia to start flying the first new Australia-Doha services in June 2025, with Perth to follow in November 2025.
ACCC deputy chair Mick Keogh said: “We consider that granting interim authorisation now will allow Qatar Airways and Virgin Australia the lead time to undertake the necessary planning discussions, marketing, selling and system alignment in preparation for Virgin Australia to commence flying the new services by June 2025.”
The new services will be offered subject to final regulatory approval by the ACCC and other government bodies.
The undertaking accepted by the ACCC ensures that if final regulatory approval is ultimately not granted, then customers who have booked these proposed new services would be protected, a statement said.
“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 added.
“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.”
The ACCC noted that it has not reached any final conclusion on the application for authorisation.
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 said it is required to assess the benefits, and weigh them against any possible public detriments in reaching a final decision.
Under the proposed arrangements, Virgin Australia would use Qatar Airways aircraft and crew to operate the new services under ‘wetlease’ arrangements.
“We are carefully considering the concerns that interested parties have raised, particularly around the wetlease arrangements and the impact of the proposed exclusivity arrangements between Virgin Australia and Qatar Airways,” Keogh said.
Qatar Airways and Virgin Australia have sought authorisation for five years.
The ACCC is expected to release a draft determination in February 2025.