Etihad Welcomes ACCC’s Decision on Virgin Australia Alliance

Etihad Airways has welcomed the Australian Competition and Consumer Commission’s (ACCC) draft determination approving the reauthorisation of its commercial cooperation agreement with Virgin Australia for a further five years.

The approval will enable Etihad Airways and Virgin Australia to continue codesharing on the Australia-Abu Dhabi route and offering reciprocal lounge and frequent flyer benefits beyond the current authorisation’s expiry date of 25 February 2016.

“In its first five years, the partnership between Etihad Airways and Virgin Australia has promoted vigorous competition in the Australian travel market, increasing choice for travellers, and has generated significant benefits and increased revenue for each airline through the alignment of our operations,” said Etihad Airways President and Chief Executive Officer, James Hogan. “Our shared commitment to innovation and superior service delivery ensures that travellers who fly on either airline enjoy an unrivalled guest experience and access to a combined network of 89 codeshare destinations. Our intention over the next five years is to expand our global reach and to enhance the guest experience for our shared customers.”

Under the current agreement, Etihad Airways and Virgin Australia offer codeshare services to 39 international destinations in Europe, the Middle East, Africa and Pakistan and to 52 destinations in Australasia.

They also cooperate extensively in the areas of sales and marketing; purchasing and procurement; flight and cabin crew secondments; and offer reciprocal benefits to their frequent flyers including access to airport lounges across their combined networks.

Etihad Airways has a 24.2% stake in Virgin Australia Holdings (VAH) and holds a seat on the Virgin Australia board.