Etihad Airways Ends Virgin Australia Partnership

Etihad Airways and Virgin Australia have formally announced that their partnership, which includes codesharing and frequent fliers, will end in 2025.

The pair will end their relationship on June 1, 2025, which is hardly a shock considering Virgin Australia’s expected direction.

The Abu Dhabi-based carrier confirmed that when the termination takes effect, passengers will not be able to book Virgin Australia-operated flights through Etihad’s booking channels.

Additionally, Etihad customers with existing bookings that include a Virgin Australia-operated segment won’t see any further changes to the itineraries. However, members will not earn Guest Miles on Virgin Australia-operated flights from the termination date.

In the last few months, Qatar Airways, a direct competitor to Etihad Airways, announced its intent to take on a 25% stake in Virgin Australia, a minority stake in the carrier focusing primarily on domestic services.

As a result, while not formally approved, Etihad Airways’ role would not make sense considering Virgin Australia’s direction in the coming years.

That direction has already been highlighted through Virgin Australia’s ambition to begin serving international routes thanks to its partnership with Qatar Airways by leasing arrangements.

Furthermore, in return, Qatar Airways will gain greater access to Australia, a market in which it has been attempting to increase its presence for some time but has not succeeded.

Much of Qatar Airways’ rejection has come from concerns that if this Middle Eastern airline were allowed to expand into Australia, there would be negative repercussions for Australians and flag carrier Qantas.

However, this has led to arguments that the protection of the Australian flag carrier must end, and Qatar Airways argues that such an expansion would benefit all involved.

The loss from this acquisition is for Etihad Airways, which previously had an established relationship with Virgin Australia. That said, Etihad Airways remains more than ever committed to the Australian market.

Etihad launched flights to Australia in 2007 and has since remained committed to steadily increasing services to major Australian cities. In fact, the airline has indicated it’ll also increase flying to the cities it serves in 2025.