Etihad and Virgin Australia have received draft approval to continue their existing codeshare agreement for another five years.
The early approval was handed down today by the Australian Competition and Consumer Commission (ACCC) because it offers benefits to the travelling public such as increased competition and easier connections between Australia and the Middle East.
Final approval is expected before the end of the year and will allow the two carriers to continue codesharing, create complimenting flight schedules schedules and offer joint pricing.
In addition to codesharing on Etihad flights, Virgin will continue to operate its three weekly return services between Sydney and Abu Dhabi using the Boeing 777 aircraft.
The carrier plans on introducing the new Business Class suites on board the 777 aircraft, which will offer greater comfort for clients travelling with the airline.
“Virgin could not offer a viable service on the route without offering the beyond connections available on Etihad’s network within the Alliance.”
Rod Sims, ACCC Chairman
Virgin Australia’s CEO, John Borghetti, welcomed the decision saying the alliance continues to generate benefits for Australian travellers.
He explained that since receiving first approval in 2011, the pair have delivered more benefits, enhanced the customer experience and introduced additional codeshare destinations – giving Aussies more access to the world.
Etihad’s CEO, James Hogan, shared the same sentiment, saying it was great news for the two airlines and for travellers.
“Our intention over the next five years is to expand our global reach and to enhance the guest experience for our shared customers.”
James Hogan, Etihad CEO
Virgin and Etihad commenced their codeshare partnership back in February 2011.
The ACCC is seeking submissions from interested parties in relation to its draft determination, before making a final decision. Submissions are due by 16 November 2015.