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The peak body for Australia’s airports has reaffirmed its support for Virgin Australia’s wet-lease agreement with Qatar Airways, with no mention of its previous concern on codeshare exclusivity.
In a submission to the International Air Services Commission (IASC), Simon Westaway, CEO of the Australian Airports Association (AAA), said the proposed 28 weekly flights to Doha “present a compelling opportunity to enhance Australia’s international aviation network”.
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As the flights would be operated under the banner of an Australian carrier, they could effectively partially circumvent the restrictions under Australia’s bilateral air service agreements with Qatar, allowing up to another 28 flights per week between Doha and the major gateways.
“This application addresses critical market needs by delivering increased capacity, fostering competition, and improving connectivity to key global markets,” Westaway said.
“Increased competition has historically driven down fares and improved service quality. With Australian consumers currently grappling with rising costs, these services will offer much-needed affordable options for international travel while ensuring greater choice and convenience for passengers.”
A previous AAA submission to the ACCC had also backed the deal but expressed concern about Qatar becoming Virgin’s exclusive codeshare partner for destinations in Europe, the Middle East and Africa, with Westaway saying it could limit competition.
“This restriction could limit Virgin Australia’s ability to partner with European (including Turkish) and African-based carriers, potentially reducing competition and choice for passengers travelling to these regions,” he said at the time.
The IASC submission, however, does not mention these issues, with Westaway instead expressing support for the “financially responsible five-year wet-lease arrangement”.
“Importantly, the codeshare element of this application enables Virgin Australia to leverage Qatar Airways’ global sales and distribution network, significantly expanding inbound tourism reach beyond its current local market,” he wrote.
“The proposed services also open up substantial passenger connection opportunities across Qatar Airways’ network of destinations, maximising the benefit of this capacity allocation.
“The AAA supports the allocation for a five-year term to provide the stability necessary for long-term planning and investment in Australia’s aviation industry.
“The rapid introduction of 28 weekly services within a 12-month period further underscores Virgin Australia’s commitment to delivering on this proposal and meeting the needs of Australian travellers.”
The ACCC late last year gave preliminary approval for Virgin and Qatar to begin selling tickets on the flights, which have since gone on sale with June start dates from Sydney, Brisbane and Perth.
