Virgin, Qatar Airways deal

QaTar Airways and Virgin Australia yesterday unveiled a major new strategic partnership (TD breaking news), with the deal said to “significantly expand both airlines’ networks, lounges and loyalty programs”.

The pact was announced at the start of the Arabian Travel Market in Dubai, and will include a comprehensive bilateral codeshare agreement giving VA passengers access to the QR global network of over 140 destinations.

Qatar Airways passengers will be able to fly to 35 destinations in Australia with Virgin Australia, connecting through from QR services into Melbourne, Sydney, Brisbane, Adelaide and Perth.

Reciprocal loyalty benefits will see members of both airline’s rewards programs able to earn and burn points on either carrier, along with tier-based benefits such as lounge access, additional baggage allowances, priority check-in and priority baggage delivery.

Qatar Airways Group CEO, Akbar Al Baker, said “we have a strong, longstanding relationship with Australia, and this agreement with Virgin Australia comes at a time when it is needed the most”.

“This partnership will give Australian passengers access to the world that they have so acutely missed these past two years, to be able to reconnect with family and friends, and keep the wheels of trade moving...we hope many of them will stop over in Doha to enjoy the wonderful tourism industry that Qatar has to offer,” he said.

Virgin Australia CEO Jayne Hrdlicka said the deal would open up Europe, Africa, the Middle East and beyond to VA customers.

The move is intriguing, given that Qatar Airways is also a member of the oneworld alliance which means it offers similar tier benefits such as lounge access and points accrual to Qantas frequent flyers.

Virgin Australia is currently seeking Australian Competition and Consumer Commission authorisation to allow it to offer existing fares from partner carriers such as United Airlines and now Qatar Airways, rather than a traditional “arms-length” arrangement (TD yesterday).