A NEW partnership between Virgin Australia and Qatar Airways is set to boost both cargo capacity and export opportunities for Australian businesses.
The Australian Competition and Consumer Commission (ACCC) recently granted interim authorisation allowing the airlines to engage in cooperative conduct under an integrated alliance.
The partnership will see new international services direct from Sydney, Brisbane, Perth, and later Melbourne, to Doha (Qatar) starting June 2025.
The new flights are expected to boost Aussie tourism, jobs, and businesses, with more than $3 billion expected to be injected into the economy over the next five years from increased visitors.
Increased cargo capacity and opportunities for exporters are also an expected positive of the partnership.
According to the Department of Foreign Affairs and Trade (DFAT), Qatar is a top-three trading partner for Australia in the Middle East and North Africa (MENA) region, with two-way goods and services trade worth $3.4 billion in 2023, and showing a growth of 10.2% from 2022.
Queensland’s Minister for the Environment and Tourism, Andrew Powell commented “In addition to growing tourism jobs, the added bonus is that those planes go back to the Middle East, Europe and Africa with cargo holds filled with Queensland exports”.
“Whether it’s seafood, fruit or beef this lets our great growers access markets across the globe.”
Qatar Airways Group chief executive officer Badr Mohammed Al-Meer commented, “We are proud to support Virgin Australia with their ambition to return to long-haul international flying, a crucial next step in their successful transformation program”.
The new services will be subject to final regulatory approval by the ACCC and other government bodies.
”We consider that granting interim authorisation now will allow Qatar Airways and Virgin Australia the lead time to undertake the necessary planning discussions, marketing, selling and system alignment in preparation for [Virgin] to commence flying the new services by June 2025,” said ACCC deputy chair Mick Keogh said.
The ACCC clarified it had not reached any final conclusion on the application for authorisation, and is required to assess the benefits and weigh them against any possible public detriments in reaching a final decision.
Under the proposed arrangements, Virgin would use Qatar Airways craft and crew to operate the new services. This is known in the aviation industry as ‘wetlease’ arrangements.
“We are carefully considering the concerns that interested parties have raised, particularly around the wetlease arrangements and the impact of the proposed exclusivity arrangements between Virgin Australia and Qatar Airways,” Mr Keogh said.
The ACCC said Qatar Airways and Virgin Australia have sought authorisation for five years. The ACCC is expected to release a draft determination in February 2025.
Virgin Australia Group CEO Jayne Hrdlicka said the new airline partnership is a game-changer, driving benefits to consumers, the economy, and Australian aviation.
“For Virgin Australia this gives us the ability to start long haul flying, which we have not been able to do over the past four and a half years,” she said.
“Our 28 new weekly services to Doha will open up a world of opportunity for those wanting to travel overseas, with more passengers able to connect to over 100 destinations around the world on Qatar’s network.”
