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Highlights
- Virgin Australia (VAH) and Qatar Airways clear final regulatory hurdle.
- New alliance introduces 28 weekly flights between Doha and major Australian cities.
- Partnership expected to enhance flight capacity and reduce prices.
Virgin Australia and Qatar Airways are poised to commence their anticipated flight services to Doha starting this June. This follows the Australian Competition & Consumer Commission’s (ACCC) final endorsement of their partnership, paving the way for a significant expansion in air travel between Australia and the Middle East.
The ACCC's approval marks a pivotal moment for both airlines, highlighting the expected public advantages of the alliance. ACCC Commissioner Anna Brakey emphasized the anticipated benefits, which include increased flight capacity and competitive pricing on these routes. The collaboration promises to intensify competition, potentially lowering fares and improving service quality for passengers.
Under the terms of the partnership, the airlines will launch 28 new weekly return flights connecting Doha with major Australian hubs such as Sydney, Melbourne, Brisbane, and Perth. This expansion is facilitated through a 'wet lease' arrangement, whereby Virgin Australia will operate flights using aircraft and crew provided by Qatar Airways.
The final green light from the ACCC came after a period of public consultation that began with a draft proposal in February. Feedback from the consultation was predominantly in favor of the alliance, with stakeholders recognizing the positive impacts anticipated from the increased connectivity and competition.
Despite some concerns from interested parties about the exclusivity of the alliance potentially discouraging Virgin from partnering with other carriers, the ACCC found no substantial opposition that would warrant blocking the deal. This decision underscores the regulator’s confidence in the alliance's capacity to foster a more competitive market, benefiting consumers through enhanced service options and potentially lower prices.
This strategic move is set to fortify the presence of Virgin Australia and Qatar Airways in the international aviation market, particularly enhancing the travel dynamics between the Middle East and Australia. Travelers can look forward to more flight options and competitive pricing structures starting this June, making travel between these regions more accessible and appealing.
