Virgin Australia and Qatar Airways

Virgin Australia and Qatar Airways (the Applicants) seek 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).

Subject to certain exceptions outlined in Virgin Australia’s submission, Qatar Airways will become Virgin Australia’s exclusive interline, codeshare and loyalty partner headquartered in the Middle East or Türkiye and Virgin Australia will become Qatar Airways’ exclusive interline, codeshare and loyalty partner headquartered in Australia.

The Applicants are seeking authorisation for 5 years.

The Applicants are also seeking interim authorisation to engage in the proposed conduct from December 2024, to enable them to commence marketing and selling tickets for the New Services, which they aim to commence flying by June 2025 (subject to the ACCC’s final determination and other regulatory approvals needed for the operation of international flights).

The Applicants offered a court enforceable undertaking pursuant to s87B of the Competition and Consumer Act 2010. The ACCC accepted the Undertaking on 29 November 2024. The Undertaking provides clarity to passengers about their rights and protections if they purchase tickets for the New Services, but those New Services do not proceed as a result of final authorisation or other necessary regulatory approvals not being granted to the Applicants. A copy of the Undertaking is available below.

On 29 November 2024, the ACCC granted interim authorisation to the Applicants to engage in cooperative conduct that will enable them to market and sell the New Services.

If you wish to make a submission in relation to this matter, please lodge it via this web form.

An indicative timetable for the ACCC’s assessment is set out below.