Virgin Australia and Qatar Airways

On 11 October 2024, Virgin Australia and Qatar Airways (the Applicants) lodged an application for authorisation to engage in cooperative conduct under an integrated alliance including:

• cooperation in relation to the deployment of capacity on routes between Australia and Doha including Virgin Australia commencing daily scheduled return services between Brisbane, Melbourne, Perth and Sydney and Doha (New Services)
• cooperation on network planning to facilitate schedule optimisation to maximise connections and enable the efficient use of capacity between the complementary networks of the Applicants, including joint decision making in relation to schedules, capacity and inventory management on flights between Australia and Doha and connecting services
• cooperation in relation to pricing, including joint pricing (including in relation to public and private fares, rebates, incentives and discounts) for passengers and agents in relation to codeshare services and the New Services
• the ability to jointly identify and decide who will, and how to, approach corporate/SME customers in Australia or with travel needs to or within Australia, including joint construction of tailored corporate offerings and discounts across domestic and international services
• cooperation in relation to sales, marketing, advertising, promotion and distribution strategies
• cooperation to maximise the earning and redemption opportunities for members of both loyalty programs and B2B partners, including reciprocal access to premium services for tiered frequent flyers and reciprocal access to lounges for eligible guests
• cooperation to enable a seamless and consistent level of service and product standards to customers including in relation to fare rules and conditions and other passenger-related aspects of service such as ground services and lounge access
• joint procurement to enable efficiencies and cost savings. This may include opportunities in relation to goods and services related to flight operations, pilot and crew training and engagement, engineering and maintenance, IT, ground handling, fuel, and facilities
• the ability to share information to the extent necessary to facilitate the matters referred to above and to explore opportunities for deeper cooperation. This may include developing new routes, and deeper cooperation on sustainability-related issues including the use of sustainable aviation fuel (SAF).

Authorisation was sought for 5 years.

The Applicants also sought interim authorisation to enable them to commence marketing and selling tickets for the New Services from December 2024, which they aim to commence flying by June 2025 (subject to regulatory approvals needed for the operation of international flights).

On 29 November 2024, the ACCC granted interim authorisation to enable the Applicants to commence marketing and selling the New Services. At the same time, the ACCC accepted a court enforceable undertaking from the Applicants pursuant to s87B of the Competition and Consumer Act 2010 which provides clarity to passengers about their rights and protections in the event that necessary regulatory approvals are not granted to the Applicants and the New Services do not proceed.

On 18 February 2025, the ACCC issued a draft determination proposing to grant authorisation for 5 years.

On 28 March 2025, the ACCC issued a final determination granting authorisation for a period of 5 years, until 23 April 2030.

Copies of the ACCC’s final determination, draft determination and interim authorisation, as well as the undertaking by the Applicants, are available below.