Etihad Airways, based in Abu Dhabi, and Virgin Australia first teamed up in 2010. This partnership was a win-win for both airlines. Virgin Australia passengers could connect to Etihad's extensive network of flights across the Middle East, Europe, and Africa, while Etihad benefited from Virgin's strong presence in Australia and nearby regions.
The collaboration extended to frequent flyer programs, where members of Etihad Guest and Virgin Velocity could earn and redeem miles across both airlines, making it easier for loyal customers to enjoy various perks.
For over a decade, this arrangement worked smoothly. Travellers had seamless booking options, convenient flight connections, and plenty of rewards. But, as they say, all good things must come to an end.
The main reason for the split is conflicting interests and a shift in business strategies. Virgin Australia has decided to focus on building a closer relationship with Qatar Airways, and Etihad no longer aligns with Virgin’s future plans.
This change is also part of a strategic realignment. Airlines frequently reassess their partnerships to ensure they align with their business goals and market demands. Virgin sees greater opportunities in its new alliance, while Etihad is focusing on its independent growth and expanding its own network.
The partnership between Etihad Airways and Virgin Australia will officially come to an end in June 2025.
This split means some significant changes for passengers who have enjoyed the benefits of this collaboration over the years. First, there will be no more code-shared flights. Code-sharing allows one airline to sell seats on another airline's flight as if it were their own, providing more options and flexibility for travellers.
Once the partnership ends, Virgin Australia flights will no longer be listed on Etihad’s website, and Etihad flights won’t appear on Virgin’s platforms either. This change will make it a bit less seamless for travellers who rely on both airlines for convenient connections.
Another major impact is on frequent flyer points. Currently, travellers can earn and redeem Etihad Guest Miles on Virgin Australia flights and use Virgin Velocity points on Etihad flights. However, this benefit will stop once the partnership wraps up.
Lastly, all the other travel benefits will be discontinued. The partnership had provided frequent flyers with shared benefits like lounge access, priority boarding, and free checked baggage. Unfortunately, these perks will no longer apply to flights between the two airlines.
Airline alliances and partnerships are always shifting. These changes are part of how the industry adapts to new opportunities and challenges. For Etihad Airways and Virgin Australia, this split marks the end of a successful chapter and the beginning of new directions.
While passengers may feel the impact of this transition, such as the loss of shared benefits and seamless connections, both airlines are making strategic moves to strengthen their offerings. Virgin Australia is focusing on its new partnership with Qatar Airways, opening doors to fresh opportunities, while Etihad is doubling down on its independent strategy to enhance its global network.
For travellers, this means adapting to the changes and exploring new ways to make the most of the services offered by both airlines.
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