Virgin Australia gets interim nod to start selling new Qatar routes

(Reuters) -Virgin Australia can start selling tickets for new Qatar Airways-operated flights between Doha and four Australian capital cities following an interim approval by the country's competition watchdog on Friday.

The interim approval by the Australian Competition and Consumer Commission (ACCC) allows Virgin Australia to market and sell 28 weekly scheduled return flights between Doha and Brisbane, Melbourne, Perth, and Sydney.

The approval comes as Qatar Airways awaits Australian approval to buy a 25% stake in Virgin Australia from U.S. private equity Bain Capital ahead of Virgin's anticipated return to public ownership after more than four 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 said.

Services between Doha and Sydney, Melbourne and Brisbane can start from June 2025, with Perth flights to follow in November. Virgin Australia will use Qatar Airways' aircraft and crew to operate the service under a wet-lease arrangement.

The new routes are still subject to final approval by the ACCC and nods from other authorities, the ACCC said.

Should the ACCC not authorise the new services, customers will be refunded or given alternative flights at no additional charge, the ACCC and Virgin Australia said in statements.

Australia's government last year denied Qatar Airways' requests to fly additional services to the four capital cities, which raised questions about its relationship with Qantas Airways.

Qantas, which holds 65% of Australia's domestic market share, lobbied against more access for the Qatari carrier. Qantas has a partnership with Dubai-based Emirates, a rival of Qatar Airways.

In response to queries from Reuters, Qantas referred to its comments in October that it was not opposed to Qatar's investment in Virgin Australia but was concerned some aspects of their partnership may result in a "public detriment" that deserved further 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 strategy and transformation officer said in a statement.



Qantas' shares ended largely flat on Friday but had gained around 9% over the month.

($1 = 1.5342 Australian dollars)

Source: Investing.com