Sydney: Australia’s competition watchdog has granted interim approval for Qatar Airways to acquire a 25% stake in Virgin Australia. The approval also allows the two airlines to begin selling return flights between Australia and Qatar, with operations expected to commence in June next year.
Qatar Airways intends to purchase the stake from U.S. private equity firm Bain Capital, providing the Gulf carrier with an alternative route to expand its presence in Australia. This comes after the Albanese government denied Qatar Airways additional flight slots last year, a move that drew significant scrutiny. The latest proposal still requires government endorsement.
Qantas Airways, which has long opposed Qatar Airways’ expansion in Australia, previously benefited from the government’s decision to reject Qatar’s bid. The national carrier maintains a partnership with Emirates, a direct competitor of Qatar Airways, further intensifying the rivalry.
The Australian Competition and Consumer Commission (ACCC) has authorized Qatar Airways and Virgin Australia to market and sell up to 28 weekly return flights connecting Doha with Brisbane, Melbourne, and Sydney starting in June. Flights from Perth are scheduled to launch in November.
“The interim authorization ensures that customers who have already booked these flights will be protected, even if the final regulatory approval is not secured,” the ACCC said in a statement.
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Under the agreement, Virgin Australia will operate the flights using Qatar Airways’ aircraft and crew under a wet-lease arrangement.
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Representatives for Virgin Australia, Qantas, and Qatar Airways did not immediately respond to requests for comment.
