Breaking: Etihad Ends Partnership with Virgin Australia

Etihad Airways has officially announced the termination of its codeshare and bilateral frequent flyer partnership with Virgin Australia, effective 1 June 2025 (existing bookings won’t be affected!). This development, while anticipated, marks a significant shift in the strategic alliances of both airlines, especially in light of Qatar Airways’ plan to acquire a 25% stake in Virgin Australia.

Impact on Travellers

With the conclusion of this partnership, passengers will no longer enjoy seamless connectivity and frequent flyer benefits between Etihad and Virgin Australia. This change could affect those who have relied on the partnership for travel between Australia, the Middle East, and beyond.

However, Etihad is ramping up its operations in Australia, with increased flight schedules to Melbourne and Sydney planned for summer 2025, indicating its commitment to the Australian market.

Qatar Airways’ Strategic Alliance

The proposed investment by Qatar Airways is a pivotal factor in this development. According to the joint application submitted by Virgin Australia and Qatar Airways to the Australian Competition and Consumer Commission (ACCC), Qatar Airways is set to become Virgin Australia’s exclusive interline, codeshare, and loyalty partner (with some exceptions).

The application specifies that Virgin Australia will not codeshare on international flights operated by other airlines to, from, or within the Middle East, Europe, and Africa. This includes ending codeshare agreements with airlines like Etihad Airways and South African Airways in those regions.

The partnership promises enhanced benefits for passengers, including increased earning of Velocity Points and Status Credits, as well as greater availability of reward seats.

Can We Expect Changes with Singapore Airlines?

While there’s no official statement from Singapore Airlines yet, the ACCC application hints that Virgin Australia’s partnership with Singapore Airlines may be limited to Asia and India. Due to the exclusive nature of the Qatar Airways proposal, it’s likely that redemptions and codeshare flights on Singapore Airlines will focus on these regions. Qatar Airways would then become the sole partner for travel across Europe, the UK, and Africa.

This potential limitation means that travellers seeking to redeem Velocity Points on Singapore Airlines flights beyond Asia and India might face restrictions. The exclusivity with Qatar Airways aims to streamline Virgin Australia’s international network but could impact the options available to frequent flyers.

Summing Up

Although this announcement was expected due to the impending partnership between Virgin Australia and Qatar Airways, it’s still disappointing to see the end of the long-standing relationship with Etihad. This development could negatively impact the value proposition of the Velocity Frequent Flyer programme, especially for travellers who frequented Etihad’s network.

The possible limitations on redemptions with Singapore Airlines add another layer of change for frequent flyers. It remains to be seen how this new alliance will reshape the aviation landscape in Australia and whether it will affect relationships with other frequent flyer programmes. Let’s see!