Seniors hoping for cheaper airfares are looking to the alliance between Virgin Australia and Qatar Airways to deliver more choice. 

This is a step closer following the announcement by Federal Treasurer Jim Chalmers that Qatar’s bid to buy 25% of Virgin Australia had met Foreign Investment Review Board approval. 

The airlines have already obtained a draft determination from the Australian Competition and Consumer Commission’s (ACCC) indicating its intention to authorise the airlines’ integrated alliance, with final approval expected in March or April. 

Under the partnership, subject to regulatory approval which is also expected soon, the airlines will commence 28 new weekly return services between Australia and Qatar. Flights from Sydney, Brisbane, and Perth to Doha are expected to begin in June, while flights from Melbourne to Doha are scheduled to start in December. 

Virgin will use Qatar’s aircraft and crew to operate the new services, under what is known in the aviation industry as a “wet lease” arrangement. 

The airlines, tourism, and accommodation bodies have welcomed the recent ACCC decision to authorise the arrangement, pending full approval soon. 

“This announcement – recommending authorisation of a five-year alliance with no conditions – will deliver significant benefits to Australian travellers in the form of greater competition, value and choice when travelling to Europe, the Middle East, and Africa, as well as significant benefits to the Australian economy more broadly, including tourism, job creation, and better freight export options,” Virgin Australia said in a statement. 

Accommodation Australia chief executive James Goodwin said, “Additional airline access should lead to cheaper airfares, bringing in more travellers and meaning more Australian jobs in the accommodation and hospitality sectors.” 

ACCC Commissioner Anna Brakey said the authority would watch closely to determine whether the move exerts the expected downward pressure on airfares. 

Travel agents have predicted more choice and affordability in travel for Aussie corporates and holidaymakers. 

“The approval of the deal will support the recovery of our international visitor economy, and strongly contribute to corporate travel recovery,” Flight Centre global chief operating officer, Melissa Elf, said. 

“Those extra flights will certainly have an impact on international travel out of Australia, particularly to Europe, which has generally been slower to return to pre-pandemic capacity and has seen higher airfares as a result.”