Etihad ‘open to discussions’ on Virgin Australia re-launch
Etihad was unable to provide a financial lifeline to Virgin Australia because of the pressures created by the coronavirus disease (COVID-19) pandemic on its own business, the Abu Dhabi-based airline said. Virgin Australia on Tuesday said it had entered voluntary administration after the COVID-19 crisis forced it into insolvency. The airline is a major codeshare partner of Etihad and a big contributor to stopover travel through Abu Dhabi for long-haul east-west routes. “Over recent weeks we have worked closely with the company and all key stakeholders to try and find a solution that would have avoided administration for Virgin Australia, but unfortunately did not succeed,” the airline said in a statement to Arab News. “Having to deal with the impact of the COVID-19 crisis on our own business, we were unable to provide additional financial support in the current circumstances.”
But it said it remained “open for constructive discussions on a potential re-launch of the company.”
Together Abu Dhabi-based Etihad and Dubai-based Emirates for years captured a huge share of long haul traffic between Australia and Europe though their codeshare partners with Virgin Australia and Qantas respectively. The routes have also benefited the local tourism sector as travelers broke their journey’s in the UAE’s two biggest cities, spending on hotels and restaurants.
Etihad said on Tuesday that Australia was an important market for the company and that it hoped the administration of Virgin Australia would allow for some form of resumption of service.
“As Virgin Australia’s largest shareholder, we have invested significantly in the company since 2012 and are disappointed by this turn of events,” the airline said. The collapse of Virgin Australia showed how many carriers will need quicker public support to survive, International Air Transport Association Director General Alexandre de Juniac said on Tuesday.
“The example of Virgin Australia is a perfect illustration of the warning we have put forward and the requests we have put in front of governments,” he said.