Abu Dhabi-based Etihad Airways said that it welcomed the Australian Competition and Consumer Commission’s ruling to extend its alliance with Virgin Australia for a further five years.
The ruling will enable the airlines to continue their cooperative services on the Australia-Abu Dhabi route and beyond until December 30, 2020, the statement said.
“In the first five years of the alliance, we’ve shaken up the competitive landscape by delivering more destinations, more capacity and an unrivalled guest experience through new, state-of-the-art aircraft and major investments in product and service innovations,” said Etihad Airways president and chief executive James Hogan.
“Over the next five years, our focus will be on new areas of commercial cooperation with Virgin Australia and opportunities for increased public benefit.”
Hogan termed the extension as a “real win for Australian travellers” and thanked all the stakeholders who supported the extension of the airline’s partnership with Virgin Australia.
Etihad Airways and Virgin Australia currently offer codeshare services to 38 destinations in Europe, the Middle East, Africa and Pakistan and to 52 destinations in Australia and Asia.
They also cooperate 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 has a 25.1 per cent stake in Virgin Australia Holdings and holds a seat on the Virgin Australia board. The Gulf carrier, which first bought a stake in VAH in 2012, has gradually increased its stake in Virgin Australia over the years in tandem with the country’s foreign investment rules.
Australia is a key market for Gulf carriers such as Emirates and Etihad, allowing them to connect passengers and fuel their hub traffic. The UAE-Australia route has seen nearly three million passengers in last 12 months alone, according to statistics revealed by officials.
By Mary Sophia
