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Gulf carrier Etihad has confirmed it will end its codeshare and frequent flyer partnership with Virgin Australia next year.
The Abu Dhabi-based airline is one of several that will be affected by an exclusivity deal between Virgin and Qatar Airways. Singapore Airlines will also no longer codeshare with Virgin on flights to Europe, the Middle East, and Africa (EMEA) should the deal go ahead.
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In a statement, Etihad said the partnership will end on 1 June 2025, which “reflects a divergence in the strategic direction of the respective airlines”.
“When the termination takes effect, passengers will no longer be able to book Virgin Australia-operated flights through Etihad’s booking channels,” the airline said.
“For Etihad customers with existing bookings that include a Virgin Australia-operated segment, there will be no changes to their itineraries. Members will not earn Guest Miles on Virgin Australia-operated flights from 01 June, 2025 onwards.
“Etihad Airways remains dedicated to serving Australia, as it has since 2007. For Summer 2025, the airline will increase its flights to Sydney and Melbourne, offering Australian guests an exceptional flying experience, loyalty benefits, and connections to its expanding global network.”
Virgin has also confirmed in a submission to the ACCC that codesharing with long-time partner Singapore Airlines would extend only to flights to and from Asia, though unlike with Etihad, this would not affect frequent flyer benefits.
“There will be no changes to Virgin Australia’s loyalty arrangements with Singapore Airlines and Velocity members will continue to be able to: earn Velocity Points and status credits when flying with Singapore Airlines (across all Singapore Airlines routes, including to and from EMEA); and redeem Velocity Points for Singapore Airlines seats (across all Singapore Airlines routes, including to and from EMEA),” the submission read.
The codeshare exclusivity agreement has raised concerns within the industry, including with the Australian Airports Association, whose CEO Simon Westaway in an ACCC submission recommended limits be imposed.
“This restriction could limit Virgin Australia’s ability to partner with European (including Turkish) and African-based carriers, potentially reducing competition and choice for passengers travelling to these regions,” he wrote.
“With Virgin being one of only two Australian-based airline groups for overseas carriers to partner with, limiting Virgin’s options could be detrimental in future. This is particularly the case where the other major Australian-domiciled airline, the Qantas Group, may have a limited incentive to partner with other airlines due to its existing alliance with Emirates.
“The AAA would support a narrowing of those restrictions to only apply to airlines based in the Middle East.”
Virgin also plans to wet lease Qatar Airways aircraft for flights to Doha under the arrangement, which would see Qatar take a 25 per cent stake in the airline.
