Abu Dhabi: Is the UAE flag carrier Etihad Airways about to add significant new capacity to Australia?
Two events have raised speculation in airline industry circles that something big is afoot.
First, there was Etihad saying it would end its long-standing unilateral and bilateral frequent flyer partnership with Virgin Australia from June 1, 2025. The airline cited ‘divergence in the direction it intends to pursue in Australia as reason to end the Virgin Australia partnership. However, the UAE airline said it remains dedicated to serving Australia, as it has since 2007. “For Summer 2025, the airline will increase its flights to Sydney and Melbourne,” Etihad said in a statement.
There is a good chance that the airline may boost its solo presence in Australia. Etihad also announced that it is ‘gearing up for one of its most ambitious projects ever, as it prepares to go big, unveiling 10 new destinations on a single day’.
The airline will reveal the locations on November 25. Antonoaldo Neves, Etihad’s CEO, said: “We have already unveiled three new destinations for 2025 - Prague, Warsaw and Al Alamein, but now we are taking it to another level. Etihad is accelerating its growth strategy with an impressive announcement of 10 new destinations daily.”
At present, Etihad sells tickets to 83 destinations.
Virgin Australia and Qatar Airways
This move from the Abu Dhabi-based carrier also comes after Qatar Airways announced plans to strengthen its existing partnership with Virgin Australia by acquiring a 25% stake in the Australian carrier from Bain Capital.
The deal between Virgin Australia and Qatar Airways includes the Australian carrier launching flights to Doha and providing improved market access for the Gulf carrier as it expands its global network.
“The proposed wet lease services will begin in mid-2025, allowing Virgin Australia to assess the longer-term merits and viability of wide-body aircraft flying while providing Australians with greater local competition for their long-haul travel needs in the near term,” Virgin Australia said.
Etihad Airways has held a 20% stake in Virgin Australia since 2013. In September 2020, the US private equity group Bain Capital acquired Virgin Australia. The airline was restructured in bankruptcy that year after the pandemic obliterated travel demand.
“Qatar Airways has been a valued codeshare partner of Virgin Australia since 2022,” said said Virgin Australia Group CEO Jayne Hrdlicka. “This investment (by Qatar Airways) will deepen a strong partnership by bringing critical scale and the best industry expertise to support our long-term competitiveness and growth,”
Meanwhile, Etihad is doing everything it takes to double its fleet to 150 planes and triple passenger numbers to 33 million by the end of the decade. The airline is also preparing for a potential IPO as part of its growth strategy—a first for a major Gulf carrier.
New heights
According to its latest traffic statistics, Etihad had 1.6 million passengers during October, achieving an average passenger load factor of 87%.
According to the airline's website, Etihad has interline and codeshare agreements with 40 airlines, including Air France, Turkish Airlines, and Egypt Air.
