Virgin gets ACCC nod for Qatar Airways merger
Australian jetsetters could soon be given more flight options to the Middle East with the consumer watchdog clearing the runway for a deal between Virgin and Qatar Airways.
The Australian Competition and Consumer Commission is set to grant authorisation for an alliance between the two carriers, providing passengers with 28 new weekly return services between Doha and Perth, Brisbane, Sydney and Melbourne.
The services still have some regulatory hurdles to clear as the watchdog seeks feedback, but ACCC commissioner Anna Brakey said the proposed partnership was unlikely to result in any public detriment.
“We consider that the proposed cooperative conduct would likely result in several public benefits,” she said on Tuesday.
Customers could be offered greater choice of international flights, improved connectivity and convenience, and a bolstered loyalty program.
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There have been some concerns the alliance could circumvent Australian workplace laws because Virgin Australia would use Qatar Airways’ planes and crew to operate the new flights.
But the ACCC brushed off the issue.
“Virgin Australia is unlikely to commence operating long-haul international services between Australia and the Middle East on a standalone basis in the next five years,” Ms Brakey said.
“In those circumstances, we do not consider that there is likely to be a material detrimental impact on the Australian aviation workforce as a result of the conduct.”
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The Middle Eastern airline’s track record with human rights and worker abuses has also led to calls for Virgin to act on commitments made with the Transport Workers’ Union over secure jobs and respect for employees.
“This green light of the Virgin-Qatar wet lease is a significant opportunity for the stability and success of the airline into the future,” TWU national secretary Michael Kaine said.
“There are still several uncertainties facing Virgin in the short-term.”
Across Australia, the skies are clearing for the domestic aviation industry, according to an ACCC report released on Tuesday.
Airfares began to decrease in December after two months of high prices fuelled by school holidays and Coldplay concerts in Sydney and Melbourne.
Cancellations also decreased even as passenger numbers grew.
That meant flights became fuller, but airlines struggled to increase their capacity due to delays in new planes from Boeing and Airbus, which have made them reliant on older aircraft that are more expensive to operate.
