Virgin Australia Eyes International Flights With Qatar Airways

Qatar Airways’ landmark acquisition efforts for Virgin Australia have received interim authorisation for at least the integrated alliance plan.

The Australian Competition and Consumer Commission (ACCC) granted authorisation. The ACCC is tasked with determining whether planned acquisition efforts will not adversely affect the general public, competition, and other factors.

Importantly, however, this will allow Virgin Australia to operate flights to Doha and thus utilise Qatar Airways’ global network to service more than 100 destinations worldwide.

The current plan is for Virgin Australia to operate 28 weekly flights from Perth, Sydney, Melbourne, and Brisbane via Qatar Airways aircraft as part of a major service upgrade for the Doha-based carrier.

Qatar Airways has been attempting to establish a more significant presence in the Australian industry for some time; however, it has struggled substantially to achieve this.

Much of the hesitancy has been about the impact Australian customers would have with Qatar Airways’ increased connectivity. Some onlookers argue that the hesitancy was also about the belief that flag-carrier Qantas needs protection, and many would disagree.

Qatar Airways’ rejection was primarily driven by its initial attempts to expand with its aircraft. As a result, the Doha-based carrier needed to be more creative with its approach to the Australian market.

Ultimately, that plan would see the airline look to acquire part of an existing carrier. The optimal airline of choice was Virgin Australia, where the airline wanted to take a minority stake to help propel the company and achieve its desires for expansion.

After review, the ACCC determined that Qatar Airways’ plan will benefit customers by increasing capacity across key cities such as Melbourne and Sydney.

Virgin Australia also knows that the interim authorisation is an important step in the right direction for its business after it entered voluntary administration at the beginning of the pandemic.

Before the pandemic and entry into administration, new backers joining the airline offered international services with widebody aircraft. However, these were cut and then subsequently cut as part of the carrier’s downsizing efforts to ensure its sustainability for the future.

Looking ahead, the pair will look to work together to enhance international connectivity. These two airlines will benefit from the relationship, which will likely continue growing with time if it is successful and attains approval.