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Virgin Australia will get interim nod to begin promoting new Qatar routes By Reuters

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(Reuters) -Virgin Australia can begin promoting tickets for brand new Qatar Airways-operated flights between Doha and 4 Australian capital cities following an interim approval by the nation’s competitors watchdog on Friday.

The interim approval by the Australian Competitors and Client Fee (ACCC) permits Virgin Australia to market and promote 28 weekly scheduled return flights between Doha and Brisbane, Melbourne, Perth, and Sydney.

The approval comes as Qatar Airways awaits Australian approval to purchase a 25% stake in Virgin Australia from U.S. personal fairness Bain Capital forward of Virgin’s anticipated return to public possession after greater than 4 years.

“We consider that granting interim authorisation now will allow Qatar Airways and Virgin Australia the lead time to undertake the necessary planning…for Virgin Australia to commence flying the new services by June 2025,” ACCC deputy chair Mick Keogh mentioned.

Companies between Doha and Sydney, Melbourne and Brisbane can begin from June 2025, with Perth flights to observe in November. Virgin Australia will use Qatar Airways’ plane and crew to function the service below a wet-lease association.

The brand new routes are nonetheless topic to ultimate approval by the ACCC and nods from different authorities, the ACCC mentioned.

Ought to the ACCC not authorise the brand new companies, prospects will probably be refunded or given various flights at no extra cost, the ACCC and Virgin Australia mentioned in statements.

Australia’s authorities final yr denied Qatar Airways’ requests to fly extra companies to the 4 capital cities, which raised questions on its relationship with Qantas Airways.

Qantas, which holds 65% of Australia’s home market share, lobbied in opposition to extra entry for the Qatari service. Qantas has a partnership with Dubai-based Emirates, a rival of Qatar Airways.

In response to queries from Reuters, Qantas referred to its feedback in October that it was not against Qatar’s funding in Virgin Australia however was involved some elements of their partnership could end in a “public detriment” that deserved additional scrutiny.

“The direct economic benefit of these new services to the Australian economy is estimated to be around A$3 billion ($1.96 billion) over the proposed five-year authorisation period,” Alistair Hartley, Virgin Australia’s chief technique and transformation officer mentioned in an announcement.

Qantas’ shares ended largely flat on Friday however had gained round 9% over the month.

($1 = 1.5342 Australian {dollars})

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