Virgin kicks off Qatar flights partnership to close in on Qantas
Virgin Australia began its long-touted flights partnership with Qatar Airways on Thursday, a move expected to expand choice for Australian consumers while stepping up competition with Qantas.
Daily Sydney-Doha connections on Qatar planes will be followed by flights from Brisbane and Perth later this month, and from Melbourne in December, Australia's second-biggest airline announced at an event at Sydney Airport. Under the terms of their 'wet lease' arrangement, Qatar provides aircraft, crew and maintenance to operate the routes, which are sold as Virgin flights.
Virgin Australia chief executive Dave Emerson said the move was 'delivering more choice, better value and a seamless global experience' to Australian travellers.
Virgin will sell tickets to 170 destinations in Europe, the Middle East and Africa, allowing it to tap Qatar's extensive route network. The alliance is expected to add 2.65 million seats a year on flights from Australia to Doha, Qatar's Middle Eastern hub.
The deal extends Virgin's reach just weeks before it plans to relist on the Australian sharemarket. It allows the largely domestic carrier to carefully re-enter long-haul international travel, while Qatar gains deeper access to the Australian market.
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Doha-based Qatar, which owns 25 per cent of Virgin, will essentially backstop Virgin's position in the domestic market, which has been defined by damaging price wars between Qantas and Virgin, Virgin's placement into administration in 2020 and the collapse of smaller players, such as regional carrier Rex Airlines last year.
Qatar has tried to expand its business in Australia for more than a decade. The Middle Eastern airline sought permission for more flights into the country in 2023, and was knocked back. The government's rationale for blocking the request came under fire after reports that Qantas – in the public crosshairs for bad service, withholding COVID credits from customers and illegally firing 1800 employees to save money during the pandemic – had lobbied the government against the competition.
Accusations that Qantas engaged in 'slot hoarding' at Sydney Airport, preventing other carriers from accessing the key entry to Australia, have also long simmered.
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