VIRGIN AUSTRALIA & QATAR AIRWAYS: Final approval granted for integrated alliance, doubling flights between Australia and Doha

Friday, 28 March 2025, saw the formal announcement from the Australian Competition and Consumer Commission (ACCC) approving the ‘integrated alliance’ between Qatar Airways and Virgin Australia. Now allowing an additional 28 flights per week between Australian capital cities and Doha in Qatar. Or, more formally, its approval of:

‘…cooperative conduct under an integrated alliance for five years, doubling the frequency of flights between Doha and major Australian airports.’

Media Release, ACCC

Virgin Australia and Qatar Airways form an ‘integrated alliance‘

Under this ‘integrated alliance,’ the two airlines can partner to conduct 28 new weekly return services between Doha and the major airports in Brisbane, Melbourne, Perth, and Sydney. Virgin Australia will be ‘wet leasing’ Qatar Airways’ aircraft and crew to operate the new services. So, for all intents and purposes, outside the actual marketing and loyalty accruals, these are Qatar Airways flights.

Qatar Airways effectively doubles its services to Australia to 56 flights per week

Remember that these new flights, which were flagged as likely to be approved back in February, are in addition to the current 28 return flights between capital cities in Australia and Doha. These are granted under the existing bilateral air service agreements between Qatar and the Australian governments.

“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, ACCC Commissioner

Public comment period

The in principle agreement to the increased services, which would launch Virgin Australia back into long haul international flying, was given back on 18 February. Additional public comment was invited.

The majority of resulting comments were in support of the ACCCs decision. However, some expressed concern over job opportunities which could have been held in Australia but which would now reside offshore.

“We consider it unlikely that Virgin Australia or any other Australian airline would commence operating Australia-Doha services on a stand-alone basis in the next five years, even if the conduct was not authorised. As such, we consider it unlikely that the conduct will result in a material detrimental impact on the Australian aviation workforce,”

Anna Brakey, ACCC Commissioner

Another concern was the exclusivity of the arrangement. Again the ACCC dismissed the concern as minor.

“We concluded that the overall impact of the exclusivity arrangements on consumers is likely to be minimal. This is because Velocity Frequent Flyer members will continue to be able to earn and redeem Velocity points on Singapore Airlines services operated globally, including on services to and from Europe, the Middle East and Africa.”

Anna Brakey, ACCC Commissioner

The ACCC did note that while no other partnership agreements involving Virgin Australia would be affected. But it would cease the partnership with Etihad Airways, noting that that arrangement had been limited in recent years.

Previous rejection of Qatar Airways expansion of flights to Australia

In July 2023, the Australian government rejected Qatar Airways‘ application to double its flight capacity between Qatar and Australia’s four major airports—Sydney, Melbourne, Brisbane, and Perth—by adding 28 weekly services. Transport Minister Catherine King stated that the additional flights were not in the national interest. ​ The minister’s various explanations for her reasoning, including the treatment of Australian women on a flight in Qatar who were invasively searched, were widely ridiculed at the time.

2PAXfly Takeout

This decision is seen as a bit of a coup for Virgin Australia, which can now claim to be a proper international airline. However, it is not saddled with the massive costs of long-haul capable aircraft and crews. For Qatar, this decision gets around the previous rejection of doubling their return flights to Australia.

For Qatar, this represents justice for the previous rejection of their application to double flights to major Australian cities.

The additional flights commence in June and have already been available for sale pending governmental approval.

Well played Qatar. Well played Virgin Australia. Jayne Hrdlicka of Virgin certainly left her CEO position with a quite large veather in her cap.

Next stop, Virgin Australia’s IPO.