Melbourne Joins Sydney, Brisbane, and Perth in Expanding Virgin Australia’s Global Network with Qatar Airways

Published on December 7, 2025

By: Paramita Sarkar

Virgin Australia (VA) and Qatar Airways (QR) have entered a strategic partnership that circumvents bilateral air service agreement (BASA) limitations, allowing the Australian carrier to re-enter the long-haul international market with an upgraded fleet. This collaboration, which saw the launch of Virgin Australia’s Melbourne (MEL) to Doha (DOH) route around December 1, 2025, is a remarkable example of how airlines can leverage partnerships to overcome regulatory obstacles and expand their networks. Here’s a detailed breakdown of this innovative arrangement.

What is the Problem with Bilateral Air Service Agreements (BASAs)?

International air travel between two countries is governed by Bilateral Air Service Agreements (BASAs), which establish the framework for the number of flights and seats that airlines from each country can operate. These agreements are crucial for controlling air traffic but can also restrict airlines’ ability to meet growing demand.

In the case of Qatar Airways, the airline had reached its capacity cap under the BASA with Australia, meaning it could no longer operate additional flights between Qatar and Australia, despite having the demand and aircraft to do so. This limitation posed a significant challenge for Qatar Airways, which had ambitions to expand its presence in the Australian market.

How Virgin Australia Is Using Its Rights to Solve the Issue

Virgin Australia, as an Australian carrier, controls a portion of Australia’s traffic rights under the BASA with Qatar. However, following the retirement of Virgin Australia’s widebody fleet, including the Boeing 777-300ERs, the airline was not using its long-haul traffic rights. This unused capacity opened the door for a strategic solution: Virgin Australia would now operate the long-haul flights using its traffic rights, but with Qatar Airways’ aircraft and crew.

The collaboration allows Qatar Airways to bypass its capacity cap by technically operating the flights under a Virgin Australia flight number. This “back door” approach enables Qatar Airways to expand its operations into Australia without breaching the limitations of the BASA.

What is the Operational Arrangement Between the Two Airlines?

This partnership operates under a wet lease agreement, meaning that while Virgin Australia holds the rights to the flights, Qatar Airways provides the aircraft, pilots, cabin crew, and in-flight services. This arrangement is a significant win for Virgin Australia, which gains access to Qatar Airways’ modern fleet, including the highly regarded Boeing 777-300ERs. Passengers flying on these flights will benefit from a world-class experience, with Qatar Airways’ award-winning Qsuite business class product and premium service standards.

• Aircraft: Qatar Airways Boeing 777-300ERs, modern widebody aircraft.
• Crew: Qatar Airways pilots and cabin crew, ensuring consistent, high-quality in-flight service.
• Branding: Although the flight uses a Virgin Australia flight number (e.g., VA7, VA8), the service is operated entirely by Qatar Airways, blending both brands to deliver an exceptional product.
• Business Class: Qatar Airways’ Qsuite business class is available on these long-haul flights, a major upgrade for Virgin Australia’s long-haul offerings.

Why Is This Partnership Important for Both Airlines?

The integration of Qatar Airways’ services under the Virgin Australia flight number offers several benefits for both airlines. For Virgin Australia, this partnership allows it to return to the lucrative long-haul market with a modern and highly competitive product. It also benefits from Qatar Airways’ vast global network, offering seamless connections to over 170 destinations worldwide.

For Qatar Airways, this partnership provides a solution to its capacity restrictions under the BASA with Australia, enabling it to meet demand without exceeding the established limits. The two carriers are now able to compete on the busy “Kangaroo Route” to Europe, one of the most competitive air corridors globally.

What Does This Mean for Passengers?

For Australian travelers, the expanded network and improved service options are a welcome development. Virgin Australia’s new flights to Doha, operated in partnership with Qatar Airways, offer passengers daily access from four major Australian cities: Sydney, Brisbane, Perth, and Melbourne. This expansion increases capacity on these routes, offering passengers more options and flexibility when booking flights to Europe, Africa, and the Middle East.

Passengers flying on these routes will enjoy enhanced global connectivity, with seamless access to Qatar Airways’ extensive network via Hamad International Airport in Doha. The new services also provide significant competition on long-haul routes, ultimately benefiting travelers by offering more competitive pricing and better service options.

What Is the Economic Impact of This Partnership?

The partnership is expected to have a profound economic impact, particularly in Australia. Initial estimates suggest that the expanded services between Virgin Australia and Qatar Airways could generate over $3 billion in economic activity over the next five years. This economic boost will be fueled by increased tourism, trade, and enhanced cargo capacity, strengthening the Australian economy.

The new services also promise to benefit airports and local economies in the four Australian cities now connected to Doha, contributing to job creation, increased passenger traffic, and enhanced cargo handling.

A Strategic Win for Both Carriers and Passengers

The partnership between Virgin Australia and Qatar Airways is an excellent example of how airlines can creatively overcome regulatory restrictions and meet growing demand through strategic alliances. By utilizing unused traffic rights and operating flights under a wet lease agreement, the two carriers have effectively expanded their networks, boosted their capacity, and provided Australian passengers with world-class service on long-haul flights. The launch of the Melbourne route, along with expanded services from Sydney, Brisbane, and Perth, marks the beginning of a new era for both airlines and will have significant economic and travel benefits for Australia.

Image: Qatar Airways