Virgin Blue Group announces new partnership with Etihad

Together, Etihad and V Australia will move towards a total of 27 weekly services between Abu Dhabi and Australia – including double-daily services between Abu Dhabi and Sydney , daily Melbourne-Abu Dhabi flights and six frequencies per week between Abu Dhabi and Brisbane .

V Australia will operate three Sydney-Abu Dhabi services per week from February 2011 and three Brisbane-Abu Dhabi services per week by February 2012, using its new fleet of three-class Boeing 777-300ER and becoming the first Australian carrier to operate to the Middle East since 1991 .

From October, Virgin Blue Group customers can access Etihad’s network of 65 destinations across North America, Europe, Asia, the Middle East and the Indian Subcontinent. All Virgin Blue services will be available to Etihad customers, opening up 44 destinations in Australia , New Zealand and the Pacific Islands , and to Asia and Los Angeles .

The agreement integrates the Etihad Guest and Velocity frequent flyer programmes, allowing members to earn status/tier points and frequent flyer points immediately along with reciprocal service benefits and lounge access for top tier members of both programs. The ability for members to burn miles on both carriers’ services comes into effect from October 1.

The Chief Executive Officer of the Virgin Blue Group of Airlines, John Borghetti, said the alliance with Etihad allowed it to redefine its long-haul operation and unlock a genuine global network that would be particularly attractive to Virgin Blue’s business and international leisure travellers.

“Everybody wins from this partnership. It increases competition, choice and convenience for the travelling public. Etihad will gain access to the valuable domestic feed in Australia and the Virgin Blue Group will gain east bound access to an extensive international network serving multiple destinations across the Middle East, the UK , Europe, Africa and Asia .

“This is a real game changer and positions us as a truly global player. Just as Virgin changed the game in domestic travel ten years ago and last year made huge impacts on the Pacific route, this agreement will bring real benefits for the travelling public. 

“With the impending launch of our product enhancements across the group, Virgin Blue and Etihad are ideally suited as airline partners.”

  “We expect the strategic alliance to have significant revenue and profit upside for both carriers. Importantly, each business will immediately gain from reciprocal traffic flow,” said Borghetti.

Etihad Airways’ chief executive officer James Hogan, added: “We are excited to facilitate the entry of V Australia into Abu Dhabi as the first Australian airline to fly to the United Arab Emirates .

“Australia is a critically important market for Etihad and we are very pleased to be able to provide more capacity on our Australian routes through this partnership.

“With our combined route network, we will provide all-important access from Australia to both the USA and Europe , which improves our suitability for both business and leisure travel and puts us right in the race for major corporate travel accounts.

“Virgin Blue is fundamentally reshaping itself and, much like Etihad, they have made huge strides in a short space of time. We know there are huge opportunities in working together very closely in this market.”  

Under the agreement, the two airlines will explore further avenues of cooperation, and will lodge an application for authorisation with the Australian Competition and Consumer Commission to allow them to cooperate across a broad range of commercial functions. 

To mark its partnership with Virgin Blue, Etihad is offering special fare sales .

Return fare deals from around Australia to Europe and the Middle East, inclusive of taxes and charges, start from AU$1834, with comparable deals on inbound fares from Europe to Australia and New Zealand.

During the sale period, Etihad return Economy fares inclusive of all taxes and charges, include: Adelaide-Dublin from AU$2138 or Adelaide-Athens from $2171; Cairns-Paris from AU$2190 or Cairns-Milan from $2138;   Gold Coast-Abu Dhabi from AU$1839 or Gold Coast-Manchester from AU$2237; London-Ayers Rock from £947 or London-Auckland from £938; Frankfurt-Auckland from €1155 or Geneva-Adelaide from CHF1355; and Beirut-Sydney from US$1991.

Etihad Business class fares start from: AU$8215 from Sydney to Abu Dhabi ; AU$8465 on Sydney-London;  and AU$8165 between Melbourne and Frankfurt .

Etihad is also launching the Australia Skypass, a new fare product that allows inbound tourists to fly all over Australia and New Zealand on up to six domestic/Tasman sectors from USD$55 per sector.

Etihad Airways’ chief commercial officer Peter Baumgartner said: “We believe the Australia Skypass will be a boon for domestic tourism in Australia , giving untapped European tourists access to secondary ports such as Tasmania and Far North Queensland, as well as connectivity between the major capital cities.”