The Australian Competition and Consumer Commission (ACCC) has proposed to grant authorization to Virgin Australia and Qatar Airways, allowing them to collaborate under an integrated alliance for a period of five years. This partnership will enable Virgin Australia to introduce 28 new weekly return flights connecting Doha with major Australian cities including Perth, Brisbane, Sydney, and Melbourne.

As part of this arrangement, Virgin Australia plans to utilize Qatar Airways' aircraft and crew through a 'wet lease' agreement, a common practice in the aviation sector. The ACCC believes that this cooperative effort is likely to yield public benefits without causing significant public detriment.

ACCC Commissioner Anna Brakey highlighted that the alliance is expected to enhance air travel options for consumers, providing increased choices for international flights, improved connectivity, and additional loyalty program benefits. The new services are still pending final regulatory approvals from the ACCC and other governmental bodies, and the ACCC is currently inviting feedback on its draft determination.

On November 29, 2024, the ACCC granted interim authorization to the airlines, allowing them to begin marketing and selling the new services. This interim authorization includes a court-enforceable commitment from both airlines to offer refunds or alternative arrangements to customers if the necessary approvals are not obtained.

However, some stakeholders have expressed concerns that the alliance may bypass Australian workforce laws, particularly regarding the use of Qatar-based crew. Despite these concerns, the ACCC believes that the impact on the Australian aviation workforce will be minimal, as Virgin Australia is unlikely to operate long-haul international flights independently in the near future.

Additionally, the Velocity Frequent Flyer program will remain intact, allowing members to earn and redeem points on Singapore Airlines flights globally. The ACCC is seeking public submissions regarding the draft determination until March 7, 2025, before making a final decision.