VIRGIN AUSTRALIA: ACCC gives the green light to Qatar alliance (for now)

The Australian Competition and Consumer Commission (ACCC) is on board—well, almost. It’s proposing to grant the Virgin Australia and Qatar alliance the go-ahead for a five-year integrated alliance. That means the two airlines can work together, marketing and selling flights between Australia and Doha and beyond.

If final approval is granted, Virgin Australia will kick off 28 new weekly return services connecting Doha with Perth, Brisbane, Sydney, and Melbourne. But Virgin won’t be flying its own planes. Instead, it’ll be using Qatar Airways aircraft and crew—known as a ‘wet lease’ arrangement.

What’s in the Qatar alliance for travellers?

More flights, more choice, more perks. That’s the ACCC’s take. Commissioner Anna Brakey says the deal could deliver better services for air travellers, offering increased international flight options, improved connectivity, and extra loyalty program benefits. Sounds good, right?

While the ACCC sees mostly upside, the plan isn’t without controversy. Some industry voices argue that letting Qatar-based crew handle these services could sidestep Australian workforce laws. There’s also concern over the long-term impact on the local aviation industry if there’s no limit on how long Qatar Airways crews operate these flights.

Not quite a done deal, but fare purchasers protected

The ACCC granted interim authorisation back in November 2024, allowing the airlines to start promoting and selling tickets. But before making a final call, the regulator is seeking public feedback on its draft determination—so if you’ve got an opinion, now’s your chance to speak up. Submissions close on March 7, 2025.

Final approvals of the sale of 25% of Virgin to Qatar still need to come from other government bodies like the FIRB (Foreign Investment Reveiw Board), but the ACCC has put protections in place. If the deal falls through, passengers with bookings on the new services will either get a full refund or be rebooked on an alternative flight at no extra cost—plus compensation for any unexpected expenses.

Frequent flyers, don’t panic

Loyalty buffs, relax. Your earning of international frequent flyer points won’t just be restricted to Qatar Airways. Virgin Australia’s Velocity members can still earn and redeem points with Singapore Airlines flights worldwide, including routes to Europe, the Middle East, and Africa. Its partnerships with South African Airways and Virgin Atlantic also remain intact, meaning plenty of ways to keep stacking up those points.

2PAXfly Takeout

The ACCC is reviewing feedback and will make a final decision after March 7. If you want all the nitty-gritty details, you can check out the ACCC’s public register.

Until then, keep an eye on this space—because whether it’s a win for travellers or a workforce headache, this alliance is shaping up to be one of the biggest Australian aviation shake-ups of the year.

With competitively priced fares, Qatar Airways service and QSuites guarantees in Business Class, what’s not to love?

Well, just remember that Qatar, both the airline and the country, have not always had a squeaky-clean reputation, especially for women and the Queer community.