CANBERRA- The Australian Competition and Consumer Commission (ACCC) has granted Virgin Australia (VA) and Qatar Airways (QR) a landmark authorization to establish an integrated alliance.
This strategic partnership will significantly enhance international air travel connectivity between Australia and the Middle East, introducing 28 new weekly return flight services across major Australian airports.
Photo: Qatar AirwaysQatar Airways, Virgin Australia Alliance
Under the newly approved five-year alliance, the airlines will dramatically increase flight frequencies between Doha (DOH) and key Australian cities, including Sydney (SYD), Melbourne (MEL), Brisbane (BNE), and Perth (PER).
Virgin Australia (VA) will leverage Qatar Airways (QR) aircraft and crew through a ‘wet lease’ arrangement, enabling seamless operational integration.
ACCC Commissioner Anna Brakey highlighted the substantial advantages of this alliance.
We consider that the conduct is likely to result in public benefits such as adding additional capacity on flights between Australia and the Middle East and is likely to result in minimal, if any, public detriment… This will likely place downward price pressure on these routes and will also give customers of Virgin Australia and Qatar Airways a greater choice of international flights with additional connectivity and loyalty program benefits.”
Anna Brakey, Commissioner, ACCC
The alliance introduces significant changes to loyalty program interactions. Velocity Frequent Flyer members will continue enjoying point-earning opportunities across global services, particularly with Singapore Airlines (SQ). The partnership maintains Virgin Australia’s (VA) existing international airline arrangements with minimal disruption to existing travel ecosystems.
The ACCC provided interim authorization on November 29, 2024, enabling immediate marketing and sales preparations for the new routes. Scheduled flights are set to commence in June 2025, marking a new chapter in international air travel between Australia and the Middle East.
The alliance initially raised concerns about potential impacts on Australian aviation jobs. However, the ACCC conducted a comprehensive assessment and concluded that the arrangement was unlikely to materially damage the domestic aviation workforce.
The regulatory body determined that Australian airlines were improbable to independently operate Australia-Doha services shortly.
Photo: Kwok Ho Eddie Wong | FlickrFuture Outlook
This alliance represents more than a mere bilateral agreement. It symbolizes a strategic approach to international air travel, where collaboration and mutual benefit take precedence over traditional competitive models.
By combining resources, Virgin Australia (VA) and Qatar Airways (QR) are creating a more interconnected and accessible global travel network.
The five-year authorization provides a robust framework for the airlines to develop and refine their partnership. It offers a flexible platform to adapt to changing market dynamics, traveler preferences, and potential future challenges in the international aviation landscape.
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Australia Grants Interim Approval for Virgin Australia-Qatar Airways Alliance
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