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DALLAS — The Australian Competition and Consumer Commission (ACCC) has granted clearance for Qatar Airways (QR) to enter into a strategic alliance with Virgin Australia (VA), signaling a seismic reconfiguration of the international aviation marketplace, atleast in Australia, according to VA.
The green light paves the way for VA’s return to long-haul international flying through a wet-lease arrangement, with 28 weekly flights to Doha set to commence in mid-2025.
A Strategic Gateway for Global Connections
In terms of the deal, VA will operate flights from Sydney, Brisbane, Perth, and eventually Melbourne to Doha using widebody aircraft leased from QR. This will be facilitated by Hamad International Airport's hub connectivity, enabling smooth onward travel to more than 100 destinations across Europe, the Middle East, and Africa. The new alliance enhances connectivity for Australian travelers heading to the region and expands loyalty program benefits for both Velocity and Privilege Club members.
With long-haul operations not part of VA’s network since its restructuring in 2020, the partnership allows the carrier to access international expertise, capacity, and infrastructure without shouldering the risks associated with acquiring new aircraft.
The venture is also expected to revive healthy competition on major international routes, particularly to Europe, which has long been the domain of a few carriers.
Economic, Employment Impact
The alliance is expected to provide an economic benefit of AUD$3 billion (around USD$1.96 billion) over five years. The agreement will also create jobs in Australia’s aviation and tourism sectors while boosting passenger growth. QR will deploy 20 VA pilots and 40 cabin crew members to cross-train and gain international experience.
Investment, Sustainability Synergies
This regulatory approval comes on top of February's sign-off from the Australian Government for QR's 25% equity stake in VA, which has already given the Gulf carrier a leg up in the market alongside majority owner Bain Capital. The deepened partnership is intended to facilitate enhanced operational and commercial integration between the two airlines.
Simultaneously, both carriers have pledged to work together on a sustainability roadmap formalized in a Memorandum of Understanding, signed in October 2024. This work will include key initiatives such as Sustainable Aviation Fuel (SAF) development, waste and energy management, and sustainable procurement practices that align with the long-term environmental goals of both carriers.
Maximizing QR-VA collaborative alignment will bring even more significant change to Australian aviation as we continue to enhance access, improve the value proposition, and develop sustainable travel methods for the benefit of passengers and industry participants.
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Featured image: Virgin Australia
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