iscover
The ACCC has rubber-stamped its initial decision to allow Virgin Australia to operate 28 flights per week to Doha starting in June.
In a final authorisation, the competition regulator said the new routes, operated as part of Qatar’s deal to buy 25 per cent of Virgin, would result in minimal public detriment and bring down prices for passengers.
This content is available exclusively to Australian Aviation members.
A monthly membership is only $5.99 or save with our annual plans.
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
The decision was widely expected after the ACCC issued a positive draft determination in February, but nonetheless signifies the very last hurdle the local carrier had to clear before launching the services.
Virgin Australia will wet lease Qatar Airways 777-300ERs to operate flights from Sydney, Perth and Brisbane to Doha starting in June and from Melbourne starting in December.
The services will be operated by Qatar crew and aircraft in a so-called “wet lease” agreement, but Virgin has pledged to send its own crew to Doha for training so those roles could one day go to its own local crew.
Commenting on its final decision, the ACCC said the majority of submissions from interested parties following its draft determination supported the new flights, though some organisations raised concerns that the wet lease would undercut local jobs.
“We consider it unlikely that Virgin Australia or any other Australian airline would commence operating Australia-Doha services on a stand-alone basis in the next five years, even if the conduct was not authorised,” Anna Brakey, commissioner of the ACCC, said.
“As such, we consider it unlikely that the conduct will result in a material detrimental impact on the Australian aviation workforce.”
The ACCC also noted that the deal with Qatar hadn’t stopped Virgin from retaining several of its existing codeshare agreements with other international airlines.
“Velocity Frequent Flyer members will continue to be able to earn and redeem Velocity points on Singapore Airlines services operated globally, including on services to and from Europe, the Middle East and Africa,” Brakey said.
“Virgin Australia’s arrangements with other airlines on services to and from Europe, the Middle East and Africa will remain unchanged, with the exception of Virgin Australia’s partnership with Etihad Airways, which has been more limited in recent years.”
The final approval by the ACCC follows similar backing from the International Air Services Commission and the federal government.
