Etihad hails Australia's decision to extend its commercial alliance with Virgin

The decision of Australian Competition and Consumer Commission (ACCC) to extend the commercial cooperation agreement between Etihad airways and Virgin Australia for another five years has been hailed by Etihad.

Etihad Airways’ President and Chief Executive Officer, James Hogan, said the decision of ACCC was a boost to the alliance.

“Today’s announcement by the ACCC is great news for the partnership and for Australian travelers,” Hogan said.

The new decision of ACCC allows Etihad Airways and Virgin Australia to continue their code-sharing on the Australia-Abu Dhabi route and extend reciprocal benefits to consumers beyond the expiry date of Feb. 25, 2016.

ACCC chairman Rod Sims said the ACCC has been satisfied with the position of Virgin that it would not operate services to Abu Dhabi sans the partnership with Etihad.

“Virgin could not offer a viable service on the route without offering the beyond connections available on Etihad’s network within the alliance,’’ Sims said in a statement.

The duo cooperates in areas of sales, marketing and cabin crew secondments and offers reciprocal benefits to frequent flyers, including access to airport lounges. Etihad has taken 24.2 percent stake in Virgin Australia Holdings and holds a seat at the Virgin Australia board.

The current agreement allows Etihad Airways and Virgin Australia to allow code sharing in 39 international destinations covering Europe, Middle East, Africa, Australia and Asia.

More choice

“In its first five years, the partnership between Etihad Airways and Virgin Australia 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,” the Etihad CEO said.

He said the shared commitment to superior service delivery has ensured travellers getting unrivalled guest experience and access to a combined network of 91 code-share destinations. The Etihad CEO said the road map for the next five years will include expanding global reach and enhancing guest experience for shared customers.

Virgin’s comment

Virgin Australia chief executive John Borghetti also expressed the satisfaction at the decision of the watchdog and said the alliance offered “unprecedented choice and competition for Australians travelling between Australia, the Middle East and beyond to Europe.”

Borgetti said his airline worked closely with Etihad Airways to add more benefits to the consumers, reported Business Intelligence Middle East.

"We have introduced more code share destinations, delivered further enhancements to the customer experience and more than doubled capacity,” he said.

The Virgin chief pointed to the increased seat capacity between Australia and Abu Dhabi through the launch of new routes flight frequencies and larger aircraft. The alliance between Australian airliners and Middle East players has been helping the Australian consumers.

Qantas now runs a successful tie up with Emirates while Qatar Airways recently announced direct flights to Sydney. In the coming months, more value and competition in the Australian aviation market can be expected.

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