The Australian Competition and Consumer Commission (ACCC) granted interim authorization for Virgin Australia and Qatar Airways to commence their integrated alliance operations. This decision allows the airlines to begin selling and operating 28 weekly scheduled return flights between Doha and Australian cities including Brisbane, Melbourne, Perth, and Sydney. The interim approval is a significant step towards the full authorization of the partnership, which was sought by the airlines to enhance their cooperation in network planning, pricing, and capacity management. This move facilitates Virgin Australia's strategy to operate new services from these Australian cities to Doha, connecting into Qatar Airways' extensive global network.
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The alliance includes provisions for joint decision-making on schedules, capacity, and inventory management for flights between Australia and Doha. It also covers pricing strategies, including public and private fares, rebates, incentives, and discounts, aiming to provide passengers with more competitive travel options. Importantly, under the terms of this interim deal, Qatar Airways will be Virgin Australia's exclusive interline, codeshare, and loyalty partner based in the Middle East or Türkiye, and vice versa for Virgin Australia in Australia.
The ACCC's decision to provide interim authorization was based on the understanding that granting this now would allow the airlines the necessary time to prepare for the new services expected to start by June 2025. This includes marketing, selling, and system alignment. The commission also stated that passengers affected by any unforeseen cessation of these services would be entitled to a refund or re-accommodation at no additional cost. This interim authorization is subject to review, with the ACCC still seeking public comments on the broader application for full authorization.
The partnership aims to boost competition in the Australian aviation market, potentially lowering airfares on routes to Europe, the Middle East, and Africa through increased capacity and new route options. This alliance marks a critical juncture for both airlines, enhancing Virgin Australia's international reach and allowing Qatar Airways to deepen its presence in the Australian market amidst ongoing discussions about flight rights and capacity. The final approval of this alliance will depend on further assessments of its impact on competition, consumer choice, and airfare pricing, but this interim step indicates a positive outlook for the cooperation between the two carriers.
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