The Australian competition watchdog approved on Friday Qatar Airways’ move to establish an alliance with Virgin Australia.
This ruling permits Qatar Airways to engage in a five-year “integrated alliance” partnership with the Australian airline, during which they will acquire a 25 percent share.
The agreement would increase flight frequencies between Doha and key Australian cities twofold, according to the Australian Competition andConsumer Commission.
The increase in Australia-Middle East routes would result in “little to no adverse impact on the public,” according to Commissioner Anna Brakey of the authority in a statement.
She noted that this could lead to reduced prices on those routes and would provide customers of Virgin Australia and Qatar Airways more options for international travel, including enhanced connections and added perks from their loyalty programs.
As per the agreement, Qatar Airways alongside Virgin Australia intend to introduce 28 additional weekly flights connecting Doha with the Australian destinations of Sydney, Melbourne, Brisbane, and Perth.
The regulatory body’s ruling was anticipated following its issuance of a preliminary statement in February, where it suggested granting authorization.
Last October, the two airlines, together with Bain Capital, which owns Virgin, unveiled the much-speculated alliance proposition.
The introduction of these new flights is anticipated to increase competition on pricey long-distance routes that have been largely controlled by Qantas for a considerable time.
Qantas — together with its budget carrier Jetstar — controls over 60 percent of Australia’s aviation sector and wields significant political influence.
In 2020, Virgin Australia initiated bankruptcy procedures, resulting in mass layoffs for numerous employees due to the grounding of international flights caused by the Covid-19 pandemic.
After the Australian government declined to provide financial assistance due to its majority ownership structure, US-based private equity firm Bain Capital stepped in to save the airline.
Qatar Airways aims to strengthen its position in the Australian market.
In 2023, Qatar initiated plans to add 21 additional weekly international flights between Australia and their country.
However, the Australian government rejected that request, mentioning the “factor” of a stripping search controversy at Doha Airport in 2020.
Ten women were removed from Qatar Airways flights at Doha Airport and subjected to intrusive gynecological examinations after a newborn was found discarded in a restroom.
Three female passengers from Australia initiated legal proceedings against Qatar Airways after the incident; however, the lawsuit was ultimately dismissed.