(Reuters) -Australia’s competitors watchdog mentioned on Friday it had given Qatar Airways interim approval to take a 25% stake in Virgin Australia [IPO-VIR.AX] and for the duo to begin promoting return flights between the international locations beginning in June of subsequent 12 months.
The tie-up will give Qatar, which plans to purchase the stake from U.S. personal fairness agency Bain Capital, a backdoor channel to extend flights into Australia after being denied by the Albanese authorities final 12 months. The federal government nonetheless must log off on the most recent proposal.
Qantas Airways had been preventing to maintain Qatar away from Australia and had gotten help from a Labor authorities. The denial final 12 months raised questions concerning the authorities’s relationship with Qantas, which has a partnership with Dubai-based Emirates, a rival of Qatar Airways.
Qatar Airways and Virgin Australia can begin advertising and marketing and promoting 28 weekly scheduled return flights between Doha and Brisbane, Melbourne and Sydney, in June, the Australian Competitors and Client Fee (ACCC) mentioned in an announcement.
Flights from Perth are scheduled to begin in November.
The ACCC’s interim authorisation ensures that prospects who’ve pre-booked these flights could be protected, even when the ultimate regulatory approval is just not granted.
Virgin Australia will use Qatar Airways’ craft and crew to function the service underneath a wet-lease association.
Virgin Australia, Qantas and Qatar Airways didn’t instantly reply to a Reuters’ request for remark.
