Australia’s competition watchdog has shown its support of last year’s wet lease agreement between Qatar Airways and Virgin Australia.

The Australian Competition and Consumer Commission (ACCC) has approved a wet lease agreement between Qatar Airways (QA) and Virgin Australia (VA), as reported by Reuters.

This allows both airlines to add 28 weekly return flights between Doha and major Australian cities, including Brisbane, Melbourne, Perth, and Sydney.

“We consider that the proposed cooperative conduct would likely result in several public benefits including providing enhanced products and services for air travellers which would include increased choice of international flights, with additional connectivity, convenience and loyalty programme benefits,” ACCC Commissioner Anna Brakey said in a statement.

A wet lease agreement allows one airline, the lessor, to supply an aircraft – along with its crew, maintenance services, and insurance – to another airline or a business brokering air travel, known as the lessee.

Under the proposed wet leasing arrangement, VA will be able to operate international flights on Qatar’s twin-aisle aircrafts starting as early as June.

These new air services are subject to final regulatory approvals by the ACCC and other government bodies. 

“The ACCC considers that the proposed cooperative conduct is likely to result in public benefits and is unlikely to result in any public detriment,” the statement added.

QA is still, however, awaiting approval from Australia’s Foreign Investment Review Board for its purchase of a 25 percent stake in VA from the U.S. private equity firm Bain Capital.

The ACCC announced it would now await feedback on its draft determination before making a final decision, which Reuters reports may come in March or April.

VA-QA flights have been on sale since December 2024.

Qatar’s bid to increase its national airline’s flights in major Australian cities was blocked in 2023 by the Labor government, citing “national interests” as the reason. Qatar Airways had sought for an additional 28 weekly flights.

A poll revealed that many Australians believe the Albanese government has acted in favour of Australian aviation giant and rival Qantas in the dispute.

This sentiment comes after reports that Prime Minister Anthony Albanese received 22 flight perks from Qantas since 2009.