Etihad to End Virgin Australia Partnership

‍DALLAS — Etihad Airways (EY) will conclude its unilateral codeshare and bilateral frequent flyer partnership with Virgin Australia (VA) in June next year. 

EY’s long-standing partnership with VA is set to end as VA prepares to partner with Qatar Airways (QR). This decision results from strategic developments at both airlines. VA is establishing closer ties with Qatar Airways (QR) and is set to make a 25% investment in the airline. 

A statement from Etihad says the decision “reflects a divergence in the strategic direction of the respective airlines,” confirming the end of a codeshare and frequent flyer partnership between the carriers from June 1, 2025.

An Exclusive Partnership

Under the agreement, VA will partner exclusively with QR on several services. However, VA and QR’s application to the Foreign Investment Review Board and the Australian Competition and Consumer Commission (ACCC) for a proposed integrated alliance is yet to be approved.

“Qatar Airways will become Virgin Australia’s exclusive interline, codeshare, and loyalty partner headquartered in the Middle East or Turkey (excluding interline for passenger re-accommodation purposes),” the application reads.

The agreement is set to shake up VA’s partnerships with various carriers as the airline is restricted from codesharing with airlines operating in many parts of the world. 

The ACCC application states that VA will not codeshare on the international flights of other airlines to, from, or within the Middle East, Europe, and Africa. This means that VA will likely terminate existing agreements with several other airlines in the months to come.

Etihad Partnership

When the termination takes effect, passengers can no longer book VA-operated flights through EY’s booking channels. However, for EY customers with existing reservations that include a VA-operated segment, their itineraries will not change. 

However, from June 1, 2025, onwards, members will not earn guest miles on VA-operated flights. EY remains dedicated to serving Australia, as it has since 2007. For Summer 2025, the airline will increase its flights to Sydney (SYD) and Melbourne (MEL).