Virgin Australia has become the first Australian airline to announce a collaboration with OpenAI, marking a significant step in transforming the carrier’s online experience.
In a landmark step, Virgin Australia says the new partnership will bring “enterprise‑grade AI tools” to both customers and staff, creating more personalised, seamless and connected travel experiences through ChatGPT and related OpenAI technology.
Under the agreement, Virgin Australia will leverage OpenAI’s platform, including the airline’s recently launched AI Trip Planner, to build next-generation flight search and travel-planning experiences.
Customers may soon be able to describe their desired trip simply, and the AI will surface the most relevant Virgin Australia flights in response.
The airline also says staff will gain access to secure AI-powered tools to support operations, booking management, and customer service. This represents a major step forward in Virgin Australia’s ongoing digital transformation.
While the use of AI in aviation is not new globally, for example, earlier this year, European carrier Virgin Atlantic started using OpenAI’s voice‑activated tools for customer service and trip planning. The Virgin Australia deal is being billed as the first in Australia, marking a potential turning point for how Aussies book and manage air travel.
What changes might customers actually see?
Virgin Australia says initial work will focus on “improved personalisation” and “enhanced customer experience.” That could mean more intuitive and flexible flight-search options; easier browsing and booking of flights via ChatGPT; better visibility of reward-seat availability for members of its loyalty program; and smoother access to ancillary services (e.g., seat upgrades, baggage, extras) tailored to individual travellers.
This move builds on an existing history of AI‑powered innovations. Last September, the airline announced the launch of tools from SabreMosaic to deliver dynamic pricing and ancillary offers, part of a multi-year retail transformation. The OpenAI collaboration could be the next evolutionary step beyond those efforts.
What’s behind the timing, and what does it say about the market?
The alliance comes at a moment when AI adoption in Australia is surging. The ChatGPT platform, developed by OpenAI (and owned by Microsoft), is firmly entrenched in many Australians’ daily lives, from business applications to travel planning. According to OpenAI, more than 700 million users are active each week.
For Virgin Australia, the move underscores a desire to meet customers “in the places and platforms they use most,” in this case, ChatGPT, and offer a more innovative, more intuitive way to plan trips. As Virgin Australia CEO, Dave Emerson put it, the airline is “laser focused on making the travel journey more wonderful.”
The timing also reflects broader momentum around AI‑driven travel search. Just last week, Google Flights unveiled a new AI-powered trip planning tool, allowing users to generate tailored itineraries across flights, accommodation and experiences in seconds.
Just as some global carriers are already experimenting with generative AI and voice‑driven assistants, Virgin Australia’s move could prompt others in the region to follow suit. Notably, just months ago, Air New Zealand announced a first‑of‑its‑kind OpenAI collaboration in Aotearoa aimed at improving both customer and employee experiences.
“We’ve been applying advanced analytics and AI across various parts of our business for many years, and this collaboration with OpenAI marks an important step forward in the next stage of our digital transformation,” said Emerson.
“In true Virgin Australia challenger spirit, we’re bringing innovation to the market that will positively reshape the way Australians travel,” he said.
