Etihad and Virgin Australia will end their code sharing and loyalty program partnership next year, according to Etihad.
Beginning June 1, travellers will no longer be able to book Virgin Australia flights through Etihad’s booking portals. Etihad passengers will not be able to earn and use loyalty miles on Virgin Australia flights, and vice versa.
“The decision reflects a divergence in the strategic direction of the respective airlines,” according to Etihad. “Etihad Airways remains dedicated to serving Australia, as it has since 2007.”
Travellers with existing bookings will not be affected.
Etihad Airways also said that the airline would increase its flights to Sydney and Melbourne in 2025.
Qatar Airways said last month it aimed to buy a 25% equity stake in Virgin Australia. If the deal is approved by government regulators, Qatar Airways will become Virgin’s exclusive booking and loyalty partner in the Middle East.
The partnership with Qatar Airways “will provide access to a greater range of international destinations with improved schedules and frequencies, increased earn and redemption opportunities for members of [loyalty programs] Velocity and Qatar Airways’ Privilege Club, and broader access to great value fares,” according to Virgin Australia.
A preliminary ACCC decision on Virgin Australia and Qatar Airways’ partnership is expected this month, which could give the airlines interim authorisation to begin their new agreement from December. A final decision is due in March.
Etihad once held a stake of more than 20% in Virgin Australia, though this ended after Virgin Australia entered administration in 2020.