Australian competition regulators have granted tentative approval for Qatar Airways to use a legal loophole to add additional flights to the country’s four biggest airports, over and above the 28 weekly flights the Doha-based carrier is currently able to operate.
Last month, Qatar Airways announced that it had struck a deal with Virgin Australia to take a 25% stake in the airline on the provision that the carrier restarted long-haul international flights.
However, Virgin Australia sold off its long-haul widebody aircraft during the pandemic, so the airline will hire planes and crew from Qatar Airways to operate its first long-haul flights as part of a so-called ‘wetlease’ agreement.
Funnily enough, the first long-haul flights that Virgin Australia plans to operate with the help of Qatar Airways will be from Brisbane, Melbourne, Perth, and Sydney to Doha.
The equity stake and cooperation agreement was, however, subject to regulatory approval and on Friday, the Australian Competition and Consumer Commission said that it had granted the two airlines an interim authorization.
Commenting on the decision, ACCC Deputy Chair Keogh said: “We consider that granting interim authorization 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 Australia to commence flying the new services by June 2025.”
However, if the ACCC decides not to grant full authorization, a legally enforceable court order will require the two airlines to offer impacted passengers a full refund or re-accommodation on a suitable alternative flight at no additional charge.
The sticking point is the controversial wetlease agreement, and Keogh says the ACCC is “carefully considering” various concerns made by “interested parties” around this exclusivity arrangement.
Qatar Airways has been desperate to operate more flights from its Doha hub to Australia’s major gateway cities, but the existing bilateral flying services agreement between the Persian Gulf state and Australia limits the airline to operating just 28 weekly flights between Doha and Brisbane, Melbourne, Perth, and Sydney.
Last year, Qatar Airways pleaded with Transport Minister Catherine King to be granted an additional 21 weekly flights, but the airline was dealt an insulting snub by King, who refused the request, citing an embarrassing and highly controversial incident in 2020 when innocent women were pulled off Qatar Airways planes at Doha Hamad Airport and subjected to forced vaginal exams.
The ACCC says it should be ready to publish a draft determination in February 2025. Qatar Airways and Virgin Australia are seeing authorization for five years.
