Australia’s competition regulator announced on Friday that it has granted Qatar Airways interim approval to acquire a 25% stake in Virgin Australia [IPO-VIR.AX]. The partnership also allows the two airlines to begin selling round-trip flights between the countries starting June next year.
This arrangement provides Qatar Airways, which plans to purchase the stake from U.S. private equity firm Bain Capital, an indirect route to expand its services in Australia after being denied additional flights by the Albanese government last year. However, the proposal still requires final approval from the government.
Qantas Airways had opposed Qatar Airways’ increased presence in Australia and received support from the Labor government. The previous denial sparked questions about the government’s ties with Qantas, which has a partnership with Dubai-based Emirates, Qatar Airways’ competitor.
Under the agreement, Qatar Airways and Virgin Australia will start offering 28 weekly return flights connecting Doha with Brisbane, Melbourne, and Sydney from June, according to the Australian Competition and Consumer Commission (ACCC). Flights from Perth are slated to begin in November.
The ACCC’s interim authorization ensures that customers with pre-booked tickets are protected, even if the final regulatory approval is not granted. Virgin Australia will operate the service using Qatar Airways’ aircraft and crew through a wet-lease arrangement.
Representatives for Virgin Australia, Qantas, and Qatar Airways did not immediately respond to Reuters’ request for comment.
