Qatar Airways to acquire 25% of Virgin Australia

[RooFlyer]

I have no doubts for the PER-JNB route, however QF were already planning on launching this even before SA ceased flying it the first time, so it’s not unlikely. Now VA has vacated the field I actually think it’s more likely QF and SA will sign an agreement, although QF’s recent deal with 4Z throws a spanner in the works.

The JNB routes are comparable to SCL routes, and ACCC continues to authorise codeshares between QF and LA, so it’s not out of the question (and was in place some years ago)

All fair enough.

 

[SCM]

I will address this point generally - having more QR flights is good, but it doesn't need to come at the cost of VAFF exclusivity on the way to EMEA! These things are NOT mutually exclusive!

SQ flies to Australia far far more than QR was even proposing earlier. Did they insist on being the only VA Partner flying to EMEA? No!

QR requested extra flights to Australia earlier this year before any such talk of this agreement. Did they need exclusivity with VA heading to EMEA? No!

It's completely unnecessary! So what should happen? Everything in this submission but not the clause restricting VA from partnering with SQ and EY (or anyone else for that matter in the future) from providing redemption, lounges and anything else to Europe/Middle-East/Africa !

How is that not obvious?

The clause basically restricts VAFFs to choose QR and even worse VA codeshares which won't be subject to the occasional 5% discount or whatnot that QR does. It means we won't be able to utilise SQ and EY flights to EMEA. Why? What's the benefit for us? None!

Do you think QR won't fly more to Australia if this is not allowed? No! They already wanted to fly more earlier this year !!! VA if anything is doing them a favour by allowing the wet-lease! It's already a win-win!

How is that not obvious?

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So, potentially opening up a dozen or more wide-body flights to DOH (connecting onto Europe) as VA flights stifles competition for VA customers? They can still fly EY etc if they like, just won't get their precious VA status perks. Very reasonable for VA to say to customers - you want your VA status perks? Fly VA, now we have our own flights.

My point is they can open up those dozen flights, without exclusivity.... that would be the best of both worlds. Qatar wanted to fly more to Australia anyway - they got rejected, that was before any talk of exclusivity with VA.

It is bad for VA customers because they have less choice, they have to go with more expensive QR flights and they don't get as many lounge benefits, they get less choice - that's by definition worse.

Yes, I'm going to submit - saying that its a bloody good idea. More flights on all or any carriers, the better.

These concepts are not mutually exclusive - I also said I support most of the submission, just not the exclusivity clause. I don't know why you are confused to think you can't have one without the other.

As far as I am aware, VA doesn’t coordinate pricing or schedules with EY or SQ, so I’m not sure what your point is. Nothing from a competition perspective is being taken away, so I don’t see how it is stifling competition in any way. It’s only improving it.

Is it not obvious? Right now you can fly EY or SQ or QR and get the same number of SCs, so you go for the cheaper option all else being equal, and EY and SQ are generally much cheaper than QR - in fact just having the 3 of them being VA partners, means they have to each compete on their own accord for all VA frequent flyers - on pricing and other benefits.

If EY giving VA plats F lounge access because VA chooses to pay them extra? Hell no! It's because they want to appeal to those higher tier flyers spending the most...