The pending wet lease agreement will see new flights between Australia and Doha starting June 2025.

Qatar Airways (QA) and Virgin Australia (VA) have reportedly received interim approval from the Australian Competition and Consumer Commission (ACCC) to proceed with the terms of a proposed stakes acquisition agreement.

This interim approval paves the way for the two airlines to soon offer an additional 28 weekly return flights between Doha and key Australian cities: Brisbane, Melbourne, Perth, and Sydney.

”We consider that granting interim authorisation now will allow Qatar Airways and Virgin Australia the lead time to undertake the necessary planning discussions, marketing, selling and system alignment in preparation for Virgin Australia to commence flying the new services by June 2025,” ACCC Deputy Chair Keogh said in a statement.

As part of the proposed deal, Virgin Australia will begin operating international flights using Qatar’s twin-aisle aircraft starting in June 2025, through a wet lease arrangement. Additionally, Qatar Airways will acquire a 25% stake in Virgin Australia.

This expansion will also provide Australian travellers access to over 100 destinations across Europe, the Middle East and Africa.

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

A recent poll revealed that many Australians believe the Albanese government has acted in favor of Qantas in the ongoing aviation dispute. This sentiment comes after reports that Prime Minister Anthony Albanese received 22 flight perks from Qantas since 2009.

Under the existing bilateral air services agreement, Qatar Airways (QA) is operating the maximum number of weekly flights to Australia. After its bid to increase flights was rejected, a successful partnership with Virgin Australia (VA) now provides Qatar Airways with a valuable entry point into the Australian market. VA already has a codeshare arrangement with Qatar, strengthening their collaborative efforts.

“The ACCC’s interim authorisation is a significant milestone that reflects the strong consumer and broader public benefits of the integrated alliance,” said Virgin Australia’s chief strategy and transformation officer Alistair Hartley.

QA chief commercial officer Thierry Antinori added that the airline would “continue working closely with Virgin Australia to progress the remaining regulatory approvals”.

”We consider that granting interim authorisation now will allow Qatar Airways and Virgin Australia the lead time to undertake the necessary planning discussions, marketing, selling and system alignment in preparation for Virgin Australia to commence flying the new services by June 2025,” said ACCC’s deputy chair Michael Keogh, who announced the interim approval in late November.

“We are carefully considering the concerns that interested parties have raised, particularly around the wet-lease arrangements and the impact of the proposed exclusivity arrangements between Virgin Australia and Qatar Airways,” he added.

A public consultation yielded 27 responses, which revealed the deal received widespread support from the travel industry and airports.

Aviation labor unions expressed concerns about the prospect of 100% Qatari crews operating what would otherwise be Virgin Australia flights.

The ACCC has stated that the new services will come into affect pending final regulatory approval, although interim green lights typically leads to final approval, which would last for five years.

Qatar’s proposed investment in Virgin will need a final nod of approval from Australia’s Foreign Investment Review Board.