Virgin Australia CEO Jayne Hrdlicka has condemned the government’s decision to block Qatar Airways from expanding its network into Australia.
The Aussie airline entered into a partnership with the Doha-based carrier in September with the deal designed to benefit passengers including double airline points, lounge access and priority boarding and check-in.
However, last month the Australian government denied an application by Qatar Airways to add 21 weekly flights to the 28 it already operates.
The extra flights would have delivered additional passengers to both airlines, with the rejection also a blow to Virgin Australia.
Ms Hrdlicka labelled the move as “disappointing” and has urged the government to rethink its decision.
The airline has since written a letter to the Federal Transport Minister seeking a meeting to understand the reasons behind the decision and to try and find a path forward.
“We are deeply disappointed that our partner Qatar Airways is unable to expand its services to Australia,” Ms Hrdlicka said in a statement on Wednesday.
“The Senate Committee Hearing in Adelaide on Cost of Living has again highlighted the importance of increasing aviation capacity between Australia and key regions in the world.
“International airfares today are nearly 50 per cent higher than pre-Covid.”
Ms Hrdlicka said the rejection hampers efforts to increase aviation capacity and reduce airfares for the Australian travelling public.
“Additional Qatar flights would have an immediate and tangible effect in reducing airfares between Australia and Europe, the Middle East and Africa,” she said.
“Qatar is in the unique position in the context of a constrained global supply of widebody aircraft, to be able to quickly make available four additional services per day to Australia.”
She said the move would “immediately” benefit the Australian tourism industry and cost-of-living relief”.
“We look forward to working with the Federal Government and other key stakeholders to find a way to understand and resolve the underlying issues,” she said.
If the Qatar bilateral expansion is approved, up to four additional daily services — 21 a week — into major Australian airports could be added. It translates to around 1 million seats per year.
News.com.au understands Virgin hugely benefits from its international partners and according to the airline it’s key for them to compete effectively with Qantas.
Qantas and its partners currently dominate, with Virgin pointing out the major carrier’s ACCC authorised relationship with Emirates to jointly serve Australia-Europe.
Qantas and Emirates jointly operate over twice as many services between Australia and the middle East/Europe as Qatar Airways.
According to Virgin, its competitiveness domestically relies on its international partnerships – with customers more likely to consider the carrier as a viable competitive alternative to Qantas domestically when it can also via partnerships serve their global travel needs.
According to The Australian, the flying kangaroo has defended the government’s decision over Qatar Airways, suggesting the reaction was overstating the importance of an extra 28 flights a week.
Qantas opposed Qatar’s application for more flights, which appeared to have helped sway the government’s decision, the publication reported.
Meanwhile, in a letter to Transport Minister Catherine King, Australian Chamber of Commerce and Industry tourism chair John Hart said more international flights would help operators rebuild after years of crippling Covid-19 restrictions.
He said the government’s decision to block Qatar Airways sets a precedent for consideration of future applications from other airlines, being that requests for additional flights will not be granted, “the loss to the tourism industry will be grave”.
“We would be grateful for the chance to meet with you to explain our concerns and detail the impacts of the decision on the tourism industry,” wrote Mr Hart in the letter seen by The Australian.
Qatar Airways is yet to comment on the decision.