Etihad and Virgin Australia set partnership end date

As Virgin Australia powers ahead with its application to form deeper interline, codeshare and loyalty ties with Qatar Airways, fellow Middle Eastern carrier Etihad Airways will ‘conclude’ its partnership with Virgin Australia in mid-2025, citing ‘a divergence in the strategic direction of the respective airlines.’

However, Etihad indicates it is ‘dedicated to serving Australia’. The airline is increasing its frequency of flights to Sydney and Melbourne for the Summer 2025 period. The airline is also set to announce ten new destinations on 25 November 2024.

No more codeshares or perks with Etihad

From 1 June 2025, Etihad’s customers will no longer be able to book Virgin Australia-operated flights through Etihad booking channels. Velocity Frequent Flyer and Etihad Guest members will also no longer be able to redeem or earn points or miles on the respective partners. However, existing bookings under the partnership will be unaffected.

Although Etihad offers Velocity Platinum members First Class lounge access in Abu Dhabi – one of the most generous perks of any Velocity partner – Qatar Airways has become Virgin Australia’s preferred partner in the Middle East. It also doesn’t help that Velocity members (along with other partners) can only book Etihad Business and First Class reward seats 30 days before departure.

What’s next with Virgin Australia and Qatar Airways?

New VA flights to Doha on the drawing board

As of 18 November 2024, Virgin Australia and Qatar Airways are still seeking urgent interim authorisation of their application to the ACCC, which would result in the two airlines being strong interline, codeshare and loyalty partners.

If approved, Virgin Australia would look to launch new daily international flights between Sydney, Melbourne, Brisbane and Perth to Doha and return from mid-2025. This would initially start as a ‘wet lease’ with aircraft and crew supplied by Qatar Airways but could (and hopefully, would) graduate to Virgin Australia-operated services.

Singapore Airlines loyalty perks to be largely unaffected

There have been some initial concerns and questions over the impact of the proposed deeper partnership with Virgin Australia’s other partners that cover Europe and Africa, specifically Singapore Airlines, South African Airways and Virgin Atlantic. From a submission dated 13 November 2024, it appears that if approved:

• Virgin Australia will no longer offer Singapore Airlines codeshare flights to Europe, the Middle East and Africa. However, there will be no change to loyalty arrangements for Velocity members.
• Members will still be able to earn Velocity Points and Status Credits, and redeem Velocity Points, on all Singapore Airlines routes, including throughout Europe, the Middle East and Africa.

This news will be a relief for Velocity members who might already earn and use points on Singapore Airlines.

Although the application confusingly states that Virgin Australia will not offer any points or loyalty benefits to any airline headquartered in Africa or Europe, the recent 13 November submission also includes the following:

• There will be no change in the relationship between Virgin Australia and South African Airways.
• There will be no change in the relationship between Virgin Australia and Virgin Atlantic.

We imagine the latter direct statement is the one to follow, indicating that although the existing partnerships will be largely unaffected by the proposed submission, the door remains closed to new ones from those regions.