Virgin Australia and Etihad received good news this morning with the Australian watchdog approving their joint alliance for another five years.
The Australian Competition and Consumer Commission (ACCC) reauthorised the relationship on the grounds that it delivers public benefits by promoting competition, especially on flights to the UAE.
Chairman, Rod Sims, said the ACCC accepts that with Etihad, Virgin wouldn’t be able to fly guests to Abu Dhabi, which would give Qantas the upper hand on Australia services to the Middle East.
“The ACCC accepts that Virgin would not operate services to Abu Dhabi if this partnership with Etihad did not exist.”
Rod Sims, ACCC Chairman
“Virgin could not offer a viable service on the route without offering the connections available on Etihad’s network within the Alliance.”
Under the extended agreement, the pair will continue to operate joint flights to the Middle East, cooperate on joint pricing and scheduling services across their network.
Etihad welcomed the decision, saying it was a ‘real win’ for Australian travellers who benefit from more capacity, connections and unrivalled guest experience.
“We are two best-in-class airlines, working together to offer a superior level of comfort and service; like-minded brands committed to putting the air traveller first through innovation and a shared passion for excellence.”
James Hogan, Etihad President and Chief Executive
Over the next half a decade, Hogan said the two airlines will focus on new areas of commercial cooperation that will continue to benefit the public.
The pair’s partnership now has Australian approval until 30 December 2020.
