Qantas Airways Ltd (ASX: QAN) had a first crack on the recently approved alliance by Abu Dhabi-based Etihad Airways on its close competitor Virgin Blue, according to the airline top honcho Alan Joyce.

It could have been Qantas that is set to cooperate with the Middle Eastern carrier on flight scheduling and joint pricing scheme, which would mark the return of an Australian carrier into the region since 1991.

Mr Joyce said that Etihad officials approached the company first and expressed willingness to establish a close business relationship with the Australian carrier as he told media that "we had the opportunity of flying into Abu Dhabi."

However, the Qantas head said that the numbers presented by the Abu Dhabi carrier were not that attractive which prompted the Aussie airline to decide against the proposed partnership deal and "hat's when they made a decision to actually approach Virgin."

Mr Joyce revealed that the current competition environment in the Middle East was intense and local carriers such as Etihad and Qatar Airways were bleeding considerable amount of money as he stressed that "any extra capacity in there is always going to be a struggle and we were very comfortable with our partners."

Following the approval handed down by the Australian Competition and Consumer Commission (ACCC) on its collaboration with Etihad, Virgin Blue said that tickets for service routes between Australia and Abu Dhabi would be made available by October 1.

The Virgin Blue-Etihad alliance would provide for connecting Etihad services offerings, reciprocal frequent flyer arrangements and lounge access on destination terminals.

Prior to its approval, Qantas argued before the ACCC that the alliance was necessary and passengers would not be disadvantaged if the proposal was denied but regulatory body maintained on its decision that "both carriers had put in place route protection plans to manage the travel arrangements of any affected passengers."