(Reuters) – Australia’s competition regulator said on Tuesday it was proposing to allow Virgin Australia and Qatar Airways to operate flights between Doha and four Australian capital cities under an integrated alliance for five years.
The Australian Competition and Consumer Commission’s (ACCC) draft determination comes after it gave an interim approval to Virgin Australia in November to market and sell 28 weekly scheduled return flights between Doha and 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 program benefits,” ACCC Commissioner Anna Brakey said in a statement.
Virgin Australia is the biggest domestic rival to Qantas Airways, which has a rival international flying partnership with Dubai-based Emirates.
Qatar Airways is still awaiting Australian approval to buy a 25% stake in Virgin Australia from U.S. private equity Bain Capital ahead of the Australian carrier’s anticipated return to public ownership after more than four years.
The ACCC is now seeking feedback on its draft determination before making a final decision by March or April, the regulator said.
Virgin, Qatar Airways, and Qantas did not immediately respond to requests for comment.
(Reporting by Himanshi Akhand in Bengaluru; Editing by Jamie Freed)
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