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Virgin Australia has been given a temporary green light to sell tickets on 28 weekly return Doha flights under a wet lease with Qatar Airways.
The ACCC’s interim authorisation will allow the airlines to market and sell the flights between Doha and Brisbane, Melbourne, Perth and Sydney, with east coast flights to commence in June 2025 and Perth flights to follow in November.
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It comes weeks after Australian Aviation exclusively revealed that up to 28 wet-leased Virgin flights per week from the four major airports were possible under Australia’s bilateral air service agreements (ASAs) with Qatar, which allow Qatari carriers to operate the same number of flights into Australia.
Virgin and Qatar had asked the consumer and competition watchdog to give the interim approval by the end of this month, to allow ticket sales to begin promptly. The service is still subject to regulatory approval; however, ACCC deputy chair Mick Keogh has said customers who book the services will be protected if the tie-up is knocked back.
”We consider that granting interim authorisation now will allow Qatar Airways and Virgin Australia the lead time to undertake the necessary planning discussions, marketing, selling and system alignment in preparation for Virgin Australia to commence flying the new services by June 2025,” Keogh said.
“Affected customers will be given the option of a refund or re-accommodation on a suitable alternative flight at no additional charge, and would not be out of pocket for any reasonably foreseeable costs, if these proposed new services ultimately don’t get approved.
“Having this court-enforceable undertaking that protects customers was important to our decision to allow Virgin Australia and Qatar Airways to start selling tickets now.”
The deal also includes exclusive codesharing for Virgin and Qatar on flights between Australia and Europe, the Middle East and Africa, which has led to the end of Virgin’s long-standing codeshare deal with Etihad, as well as Virgin codeshares on Singapore Airlines flights beyond Asia.
The ACCC has not yet made a final decision on the arrangements, with a draft determination expected to be released in February.
“We are carefully considering the concerns that interested parties have raised, particularly around the wet-lease arrangements and the impact of the proposed exclusivity arrangements between Virgin Australia and Qatar Airways,” Keogh said.
In a statement, Virgin Australia’s chief strategy and transformation officer, Alistair Hartley, said the interim authorisation is “a significant milestone that reflects the strong consumer and broader public benefits of the integrated alliance”.
“These benefits include new Virgin Australia flights to Qatar, more capacity, better connections and downward pressure on airfares from Australia to the Middle East, Europe and Africa,” Hartley said.
“The direct economic benefit of these new services to the Australian economy is estimated to be ~$3 billion over the proposed five-year authorisation period arising from increased inbound international visitor spend.
“This is an important and positive step in the regulatory process.”
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says:I wonder why from PER there is a wait until November yet SYD and MEL get June!