SENATOR DEAN SMITH
SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY
SENATOR FOR WESTERN AUSTRALIA
MEDIA RELEASE
18 February 2025
ACCC NOD TO VIRGIN-QATAR ALLIANCE A WIN FOR COMPETITION
The latest ACCC green light to a flight partnership between Virgin Australia and Qatar Airways is welcome news for Australian air consumers.
The competition watchdog today released a draft determination that a five-year integrated alliance between the carriers can go ahead.
This long-standing issue has been at the heart of the airline competition debate in Australia, with greater competition and its many benefits to travellers given low priority – and in some cases actively prevented – by the Albanese Government.
Under the proposal, the carriers will operate 28 new weekly services between Doha and Perth, Sydney, Melbourne and Brisbane, with Virgin using Qatar aircraft and crew under a wet lease arrangement.
Although its final determination is subject to regulatory approvals and feedback, the ACCC has judged the Virgin-Qatar alliance “is likely to result in public benefits and is unlikely to result in any public detriment”.
The release of this draft decision coincides with the publication of ACCC’s February 2025 Domestic airline competition in Australia Report, an important pro-competition initiative which Labor attempted to shut down in October 2023 but was forced to retain under Coalition pressure.
The Report revealed that total arrivals and departures to and from Australia increased by 6.8% and 11.6% respectively in the 12 months to November 2024, demonstrating a steady increase in demand for international travel over the past year.
This increased demand makes the Virgin-Qatar proposal, and the alternatives it will offer, timely good news for passengers.
And while today’s draft determination is a positive step for all Australian air consumers, it is worth noting that those in Western Australia will especially benefit from it.
The ACCC Report notes “Western Australia in particular experienced significant growth in international travel. International passenger numbers at Perth Airport were 23% higher in 2024 than in 2023.”
These additional services to the Middle East and beyond will provide Western Australians with greater choice and flexibility when booking an air ticket.
Comments attributable to Senator Dean Smith:
“This draft decision is welcomed by the Coalition as an important step for aviation competition in Australia.”
“It gives consumers the choice, flexibility, better service and cheaper prices that accompany improved competition – and the latest data confirming increased demand makes the timing of this especially significant.”
“This decision comes nearly three years after the Albanese Government came to power and its term has been characterised by either neglecting, or blocking, increased competition in this sector.”
“There is still a long way to go until we have the sector Australian travellers deserve, but the ACCC’s draft decision today, and the various Coalition initiatives aimed at boosting aviation competition, reveal progress will happen despite Labor’s incompetence and skewed priorities.”
ENDS