The Australian Airports Association (AAA) has welcomed the ACCC draft determination to authorise the proposed partnership between Virgin Australia and Qatar Airways.
The ACCC’s latest Domestic airline competition in Australia report has found that Australia’s aviation industry has made a strong rebound post-COVID as demand continues to surge.
A number of major airports exceeded travel forecasts over the period between December 2024 and January 2025 and passenger numbers are expected to continue rising in the coming years.
To accommodate this growth, Australian airports are investing billions of dollars in critical infrastructure projects nationwide.
However, challenges remain in the domestic airline market, including limited competition, connectivity and constrained capacity. The number of airlines and available routes has significantly decreased since April 2024.
The ACCC also notes the ongoing global aircraft shortage is constraining potential growth.
AAA CEO, Simon Westaway, said that Australia has just experienced likely the busiest holiday period ever seen at its airports, and aircraft capacity for intercity routes is stretched thin.
“The AAA joins the ACCC in urging airlines to increase seating capacity to meet rising demand,” Mr Westaway said.
“The proposed Virgin-Qatar deal is a crucial opportunity to improve airline competition, capacity and jobs creation. We look forward to the federal government’s prompt approval process for this alliance.
“The ACCC provides valuable insights into the airline industry for the flying public, which is why we’ve also called on the federal government to continue its quarterly airline monitoring reports beyond 2026.”
Read the full report here.
