The Australian Competition and Consumer Commission (ACCC) has granted authorization for Virgin Australia and Qatar Airways to form an integrated alliance for five years, which will double the number of flights between Doha and key Australian airports.

This alliance will introduce 28 new weekly return flights to major cities including Sydney, Melbourne, Brisbane, and Perth. Virgin Australia will operate these new services using Qatar Airways’ aircraft and crew under a 'wet lease' agreement.

According to ACCC Commissioner Anna Brakey, this cooperative conduct is expected to provide public benefits by increasing flight capacity between Australia and the Middle East, while posing minimal public detriment. The increased competition is likely to lower prices and enhance customer choices for international flights, along with added connectivity and loyalty program advantages.

While the ACCC's draft determination released on February 18, 2025, received mostly supportive feedback from interested parties, some expressed concerns regarding the potential impact on Australian aviation jobs due to the wet lease arrangement. However, the ACCC believes it is unlikely that Virgin Australia or any other local airline would independently operate Australia-Doha services in the next five years without this authorization.

Concerns were also raised about the potential reduction in Virgin Australia’s ability to partner with other airlines, but the applicants did not seek authorization for exclusivity arrangements. The ACCC assessed these arrangements and concluded that their impact on consumers would be minimal, as Velocity Frequent Flyer members can still earn and redeem points on Singapore Airlines services globally.

Interim authorization was granted on November 29, 2024, allowing Virgin Australia and Qatar Airways to begin marketing and selling the new services, with flights set to start in June 2025. This interim measure will remain until the final determination is made.

The ACCC's authorization provides legal protection from court action for the airlines' conduct, as long as the public benefits outweigh any potential detriments.