The deal between Virgin Australia and Qatar Airways could mean flights resume between Canberra and Doha and break Qantas's stranglehold on bureaucrats' flights in and out of the capital.
Submissions made to the ACCC's inquiry into the deal, which would make the two airlines exclusive partners between Australia and the Middle East, reveal the parties are considering re-introducing a connection between Canberra and Doha.
The airlines propose to add 28 return flights between Australia and Doha from the four gateway ports of Sydney, Melbourne, Brisbane and Perth.
Passengers from Canberra would be able to connect to these flights directly via Virgin's domestic network, however the airlines proposed adding to this by launching new routes.
"Increased feeder traffic on the networks of Virgin Australia and Qatar Airways as a result of the proposed conduct increases the likelihood of additional services on existing domestic and international routes and the introduction of new routes eg flights between Doha and other non-gateway ports, such as Canberra," the submission states.
Qatar previously flew to Canberra via Sydney, but the route did not return after the pandemic.
Canberra Airport had eyed resuming international flights to Doha, however the federal government's block on additional flights by Qatar Airways had seemed to scupper this ambition.
The deal with Virgin means it could be back on.
In its submission to the ACCC, Canberra Airport backed the merger, not only because it could add additional routes out of the capital.
Head of aviation Michael Thomson said that with Qantas dominating the market for flights from Canberra, the deal would increase competition for the lucrative corporate and government market that makes up the bulk of passengers flying to Canberra.
"The share of corporate contracts in Australia is heavily skewed towards one airline, essentially freezing out competitors," Mr Thomson said in the airport's submission.
"This proposed conduct would offer greater choice for corporate and business travellers by providing stronger offerings, particularly on the domestic network."
Reports this week showed that public servants and politicians heavily favour flying with Qantas, even if it may not be the cheapest option available.
Mr Thomson said the merger between Virgin and Qatar would break the flying kangaroo's stranglehold on the market.
"Taxpayer-funded travel should be shared more equally across airlines to boost competition. Canberra Airport submits the authorisation of this application will assist in achieving this," he said.
"The proposed conduct will not only furnish additional options for public servants travelling for business overseas, but also provide interline connectivity to the major gateways from Canberra where Virgin currently accounts for between 30 and 36 per cent of total passenger share."
The ACCC will this month make a decision regarding interim authorisation for the deal to proceed.
Final approval is expected in March next year.
The deal also requires the sign-off of the Foreign Investment Review Board.
The terms of the deal involve Qatar buying a 25 per cent stake in Virgin. In return, Virgin will be able to fly from Australia to Qatar under a wet lease arrangement, where the planes and crew will be Qatari but passengers' tickets will show a Virgin service.
The two airlines will also share frequent flyer and lounge access.
