VIRGIN AUSTRALIA: To part ways with Etihad Airways from mid-2025

Virgin Australia is officially parting ways with its long-time partner, Etihad Airways, by June next year. This move clears the runway for a new alliance with Qatar Airways, which is eyeing a 25% stake in Virgin, subject to regulatory approval.

The Official Word from Etihad Airways

Etihad made it clear that the decision is all about in a statement quoted in ET:

“divergence in the strategic direction of the respective airlines.”

Etihad statement

Essentially, the codeshare and frequent flyer partnership will be grounded as of June 1, 2025.

Premature partnership ejection?

Ever since Virgin applied for a partnership and partial ownership by Qatar Airways, a parting of ways between Etihad and Virgin Australia has been predicted. Virgin and Qatar still need the Foreign Investment Review Board and the Australian Competition and Consumer Commission (ACCC) to green-light the deal for this proposed integrated alliance.

What the ACCC application tells us

The ACCC application gives us some details of the new alliance and how it could reshape Virgin’s current partnerships. That includes the partnerships with Etihad and Singapore Airlines. Qatar Airways will become Virgin Australia’s go-to partner for interline, codeshare, and loyalty programs in the Middle East and Türkiye, with some limited exceptions.

This means Virgin won’t be codesharing on international flights with other airlines that operate in the Middle East, Europe, or Africa. Singapore Airlines remains mum, but it looks like Virgin’s partnership with them will be limited to Asia and India.

Qatar Airways will take over as Virgin’s exclusive partner for routes across Europe, the UK, and Africa.

A New World Map for Virgin says goodbye to Etihad Airways

The ACCC application document even includes a map. It outlines the reimagined Virgin Australia international network under the new Qatar Airways alliance. From this chart, it looks like Virgin will also be cutting ties with South African Airways. The ACCC application makes it clear: no codeshares or loyalty services with any airline in Africa.

Qatar Airways: More Than Just a Partner

If Qatar Airways does not become a part owner of Virgin Australia, we would call this a ‘wet lease’ agreement. Qatar Airways plans to offer aircraft and crew to Virgin, enabling daily flights from major Australian cities to Doha by mid-2025.

An integrated deal – far more than just flights with Qatar Airways

The Virgin-Qatar alliance promises more than just flights. Expect increased earning of Velocity Points, additional status credits, and more opportunities for points-based redemptions—benefits that frequent flyers will welcome.

2PAXfly Takeout

Doesn’t this remind you of another partnership, without a shareholding? Yep, you guessed it. It’s just like Jayne Hrdlicka has taken a leaf out of the Qantas playbook. This arrangement to use a middle eastern airline to access half the world is redolant of what Qantas did with Emirates.

Virgin Australia’s breakup with Etihad is paving the way for a new chapter with Qatar Airways. We will know more once the tieup between Virgin and Qatar is approved by the regulators.