Etihad Airways is set to lose its only Australian codeshare if plans proposed by Qatar Airways to acquire a 25% minority stake in Virgin Australia are approved.
In a joint application to the Australian Competition and Consumer Commission (ACCC), it is stated that if the proposal is accepted, Virgin Australia’s codeshare agreements will be impacted.
“Qatar Airways will become Virgin Australia’s exclusive interline, codeshare and loyalty partner headquartered in the Middle East or Türkiye,” the application reads. “Virgin Australia will not codeshare on the international flights of other airlines to, from or within the Middle East, Europe, and Africa.”
News of the ramifications on Etihad Airways were first reported by Australian Aviation following an analysis of the proposed deal by Analytic Flying.
In addition, the application reveals that Virgin will become Qatar Airways’ exclusive interline, codeshare and loyalty partner headquartered in Australia.
“Qatar Airways will not codeshare on the international flights of other airlines to or from Australia,” the application adds.
However, the proposal does allow Qatar Airways to continue its relationship with Qantas, as both airlines are part of the Oneworld alliance.
It also permits either Virgin Australia or Qatar Airways to join the Star Alliance or SkyTeam, with Virgin Australia eligible to join Oneworld as well.
According to Australian Aviation, the proposal could seriously hamper long-haul travel in Australia with many passengers choosing to book with Etihad due to its partnership with Virgin.
The proposed services include daily scheduled Virgin return services between Brisbane, Melbourne (twice a day), Perth and Sydney and Doha using capacity wetleased from Qatar Airways.
Analytic Flying indicates that the proposal suggests these flights will be operated by Boeing 777-300ERs. The application covers a five-year period, starting in June 2025.