The Australian Government has approved Qatar Airways Group’s 25% minority stake in Virgin Australia, paving the way for a stronger alliance between the two airlines. This move is expected to deliver a $3 billion boost to Australia’s economy over the next five years, primarily through increased tourism and business travel.

In a significant development for Australian aviation, the Australian Competition and Consumer Commission (ACCC) has granted authorization for Virgin Australia and Qatar Airways to collaborate under an integrated alliance for the next five years.

The partnership will introduce 28 new weekly return flights between Doha and key Australian airports, including Sydney, Melbourne, Brisbane, and Perth.

More Flights, More Connectivity

Under this agreement, Virgin Australia will operate flights using Qatar Airways’ aircraft and crew under a ‘wet lease’ arrangement. These services will be in addition to qatar airways fleet existing routes, providing travelers with more options, better connectivity, and seamless travel experiences between Australia and the Middle East.

The ACCC had initially released a draft determination on February 18, 2025, proposing to approve the alliance. While most industry stakeholders supported the decision due to increased flight options and competition, some concerns were raised about its potential impact on Australian aviation jobs.

Addressing Concerns Over Competition

Some industry players also questioned whether this partnership might limit Virgin Australia’s ability to collaborate with other airlines. However, the ACCC clarified that its approval does not include exclusivity arrangements—meaning Virgin Australia is free to explore other airline partnerships in the future.

The exclusivity arrangements, which were not part of the authorisation request, would have made Virgin Australia and qatar airways flight each other’s exclusive interline, codeshare, and loyalty partners in Australia, the Middle East, and Türkiye. While this was a consideration, the ACCC ultimately determined that it would not create any significant public detriment.

Flights Begin in June 2025

To fast-track the launch of the new flights, the ACCC granted interim authorization on November 29, 2024, allowing marketing and ticket sales to begin immediately. The first flights under this agreement are scheduled to commence in June 2025.

This expansion marks a major milestone for Australia’s aviation industry, providing greater connectivity, economic benefits, and enhanced global reach. With increased flight options to Doha—one of the world’s leading international hubs—qatar airways destinations travelers will soon enjoy seamless access to more destinations across Europe, the Middle East, Africa, and beyond.