Virgin Australia has announced the termination of its long-standing partnership with Etihad Airways, effective June 1, 2025. This decision paves the way for a proposed strategic alliance with Qatar Airways, which includes Qatar’s potential 25% investment in Virgin.
In a statement, Etihad attributed the split to “a divergence in the strategic direction of the respective airlines.” The conclusion of the codeshare and frequent flyer partnership will mark the end of a collaboration that has played a significant role in Virgin Australia’s international connectivity.
Qatar Airways Alliance on the Horizon
Virgin Australia’s filings with the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board outline the framework of the proposed Qatar Airways partnership. The alliance would make Qatar Airways Virgin’s exclusive interline, codeshare, and loyalty partner headquartered in the Middle East or Türkiye.
The ACCC application also reveals that Virgin will cease codesharing on flights operated by other carriers to, from, or within the Middle East, Europe, and Africa. This includes the termination of ties with South African Airways, as well as a potential narrowing of its Singapore Airlines codeshare to flights within Asia and India.
If approved, the partnership with Qatar Airways will significantly reshape Virgin Australia’s international network. The proposed agreement includes plans for Qatar Airways to provide aircraft and crew for Virgin-operated flights from Sydney, Melbourne, Brisbane, and Perth to Doha by mid-2025.
Enhanced Benefits for Travelers
As part of the alliance, Qatar Airways and Virgin Australia aim to enhance their offerings for passengers. These include increased earning of Virgin’s Velocity Points and status credits, along with more opportunities for points-based redemptions.
Both airlines have expressed confidence in the partnership’s potential to strengthen Virgin Australia’s global reach and improve connectivity for travelers across Europe, the UK, and Africa via Qatar’s extensive network.
Awaiting Regulatory Approval
Despite these developments, the alliance remains subject to approval by Australian regulatory bodies. Until then, Virgin Australia’s international codeshare network and frequent flyer arrangements remain unchanged.
The partnership is set to usher in a new era for Virgin Australia, positioning the airline as a stronger competitor in the global aviation market while redefining its strategic alliances. However, it signals the end of an era for its relationships with Etihad Airways and other key partners.
