Qatar Airways Gains Interim Approval for Virgin Australia Stake and New Flight Routes

Highlights

• ACCC grants interim approval for Qatar Airways’ 25% stake in Virgin Australia.
• New 28 weekly return flights between Australia and Doha set to begin in June 2025.
• Agreement strengthens competition and expands travel options in the Australian aviation market.

Qatar Airways Secures Interim ACCC Approval for Virgin Australia Stake and Joint Operations

The Australian Competition and Consumer Commission (ACCC) has granted interim approval for Qatar Airways to acquire a 25% stake in Virgin Australia (ASX:VAH), a move that is expected to reshape the dynamics of the Australian aviation sector. This marks a significant step forward for both airlines, setting the stage for a new chapter of collaboration that will enhance connectivity and provide more travel options for passengers.

The approval allows Qatar Airways to move forward with its plan to launch 28 weekly return flights between Australia and Doha starting in June 2025. The flights will operate under a wet-lease agreement, meaning Qatar Airways will provide its aircraft and crew for Virgin Australia’s services from Brisbane, Melbourne, and Sydney, with additional routes from Perth to commence later in the year.

This agreement represents Qatar Airways’ second attempt to secure a stronger foothold in the Australian market, after its previous attempt to increase direct flights into the country was blocked. The 25% stake in Virgin Australia marks a strategic partnership that enables the airline to expand its operations on Australian soil without the need for additional direct flights. The joint venture also opens the door for greater competition on international routes, offering travelers more choices and increased frequency for long-haul travel between Australia and the Middle East.

The interim authorisation granted by the ACCC also ensures that passenger protections will be in place for those who book flights on the newly introduced services. Although the broader regulatory approval process still needs to be completed, this move is seen as a major victory for consumers, according to both Qatar Airways and Virgin Australia.

The two airlines have expressed optimism about the potential benefits this partnership will bring to both the Australian and global aviation industries. Alistair Hartley, Virgin Australia's Chief Strategy Officer, described the ACCC’s approval as a “significant milestone” that demonstrates the strong public benefits of the alliance. Thierry Antinori, Qatar Airways’ Chief Commercial Officer, echoed this sentiment, emphasizing the expanded business opportunities for travel partners and a continued focus on regulatory progress.

Despite the positive steps forward, the deal still requires final approval from the federal government, which will need to sign off on Qatar Airways’ purchase of the Virgin Australia stake from US-based private equity firm Bain Capital. This approval is crucial for the completion of the deal, as the federal government’s stance on Qatar Airways’ entry into the Australian aviation market has been controversial, particularly in light of its strained relationship with Qantas Airways (ASX:QAN), which has a long-standing partnership with Qatar’s regional rival, Emirates.

If the deal goes ahead, the partnership will provide Virgin Australia with an expanded international footprint, while offering Qatar Airways the long-sought opportunity to solidify its presence in the Australian aviation market. The deal also promises to intensify competition, potentially reducing airfares and offering passengers more convenient options for travel between Australia and Europe, the Middle East, and beyond.

The ongoing regulatory process will be closely watched by industry stakeholders, but with the ACCC’s interim approval in hand, Qatar Airways and Virgin Australia are one step closer to launching their new joint operations and contributing to the growth of Australia’s aviation sector.