Competition watchdog the Australian Competition and Consumer Commission (ACCC) has granted interim approval for Qatar Airways to acquire a 25% stake in Virgin Australia.
Flights from June 2025
This frees the two airlines up to begin marketing and operating 28 weekly return flights between Australia and Doha from June 2025.
The turns out to be Qatar Airways’ circuitous route to expanding its presence in the Australian aviation market, following its unsuccessful attempt last year to increase direct flights into the country.
Virgin Australia will operate services from Brisbane, Melbourne, and Sydney starting in June, with flights from Perth to commence in November.
The flights will be operated under a wet-lease arrangement using Qatar Airways' aircraft and crew.
The ACCC’s interim authorisation ensures protections for passengers who pre-book these flights, even if the broader regulatory approvals required to finalise the deal are not yet granted.
Virgin Australia and Qatar Airways hailed the ACCC’s approval as a big win for consumers.
“The ACCC’s interim authorisation is a significant milestone that reflects the strong consumer and broader public benefits of the integrated alliance,” Virgin Australia chief strategy officer Alistair Hartley said as part of a joint statement.
Qatar Airways chief commercial officer Thierry Antinori added: “We are pleased to be helping Virgin Australia launch these new services to Qatar and creating further business opportunities for our travel trade partners.
“We will continue working closely with Virgin Australia to progress the remaining regulatory approvals.”
Greater choice and connectivity
The alliance is expected to intensify competition in the Australian market, offering travellers greater choice and connectivity.
The rejection of Qatar Airways’ earlier expansion plans by the Albanese government had sparked controversy, with critics questioning the government’s relationship with Qantas Airways (ASX:QAN), which has a partnership with Emirates, Qatar’s regional rival.
Ironically, the ACCC’s approval is contingent on the federal government’s sign-off, as Qatar Airways plans to purchase the Virgin Australia stake from US private equity firm Bain Capital.
If approved, the deal will widen Virgin Australia's international footprint while giving Qatar Airways its long-sought strategic foothold in the Australian aviation market.