• Virgin Australia’s alliance with Qatar Airways won’t negatively impact most partnerships or frequent flyer benefits.
• Existing partnerships with airlines like Singapore Airlines and South African Airways remain unchanged.
• The alliance aims to increase flight capacity and potentially lower fares.

Virgin Australia has moved to shut down concerns its impending marriage with Qatar Airways will gut its existing partnership arrangements and dud its frequent flyers. The airline has submitted a lengthy response to submissions made to the ACCC about the proposed “integrated alliance” that will see Qatar Airways take a 25% shareholding in Virgin and Virgin use Qatar aircraft and crews to operate its own flights to Doha.

The good news is, aside from the demise of Virgin’s already watered-down partnership with Etihad, not much will change for Virgin’s frequent flyers, including the ability to earn and burn points and redeem flights on partner airlines. Much of the confusion stemmed from a proposed geographical exclusivity clause making Qatar the only Gulf-based codeshare partner and the only airline allowed to offer VA codeshares and flights to airports in the Middle East, Europe, and Africa (EMEA).

Calm the farm says Virgin. It’s just a codeshare. If the ACCC approves the alliance, here’s what it will mean for Virgin’s existing partnerships and Velocity frequent flyers.

Will Singapore Airlines still honour my Velocity perks?

Virgin Australia will no longer place its flight number on Singapore Airlines flights operating to and from EMEA airports. But that has zero impact on the ability to book Velocity reward seats, earn points, and take advantage of lounge access rule on Singapore Airlines flights in and out of those regions.

Existing codeshare arrangements on Singapore Airlines flights outside EMEA will remain in place. Virgin says there is a misunderstanding about changes to the Velocity program:

“There will be no changes to Virgin Australia’s loyalty arrangements with Singapore Airlines.”

Virgin Australia in submission to ACCC

That means a Velocity Gold member flying economy on Singapore Airlines with their Velocity number in the booking can still wander into the Krisflyer lounge in Heathrow for a couple of glasses of Piper before flying out, and a Velocity member can still book a redemption on a Singapore Airlines flight to Cape Town.

Are South African Airways and Virgin Atlantic breaking up with Virgin Australia?

Virgin Australia’s existing partnership with South African Airways will remain in place. While lacking the depth of the Singapore partnership, South African does scoot between Perth and Johannesburg up to four times per week and offers a far quicker option than detouring through Doha. 

Virgin says there will be no changes to Velocity members’ ability to earn and redeem Velocity points when travelling on eligible South African Airways-operated flights. Priority check-in and access to South African Airways-operated lounges will also remain the same.

Velocity gold members and above flying on eligible Virgin Atlantic-operated flights will also continue to receive priority check-in, priority boarding and lounge access. South African and Virgin Atlantic were partners of concern because they both have extensive operations within that EMEA exclusivity zone.

Existing arrangements with Virgin Australia’s other international partners, namely ANA, Air New Zealand, Hawaiian Airlines, Air Canada, and United Airlines continue as is. 

Will Virgin Australia end its partnership with Etihad?

The casualty of Virgin Australia’s tie-up with Qatar is its longstanding partnership with Etihad. This will end on June 1, 2025. In recent years, the partnership had become a shadow of its former self – a bit like Etihad, really. But there were some bright spots, like Velocity platinum members getting access to the first class lounge in Abu Dhabi. If that’s still a bucket list travel item, there is six months left before that perk evaporates.

Virgin says its alliance will offer all travellers, not just Velocity members, easier access to a bigger range of destinations. The airline says the alliance, if approved, “will deliver clear and significant public benefits to Australian travellers and the Australian economy.” Virgin CEO Jayne Hrdlicka said it gives her airline…

“A shot at something special.”

Virgin CEO Jayne Hrdlicka

The deal will see Qatar effectively double the number of planes it sends in and out of Australia. The extra flights will operate as Virgin Australia flights, although Qatari crews will operate them. However, it’s unknown if Virgin will want to cough up the dough to serve caviar to its passengers in their “it’s Qatar but it’s not Qatar” business-class cabins.

Is the Virgin Australia-Qatar Airways partnership good for passengers?

Theoretically, all this additional capacity should put downward pressure on airfares – a win for travellers. But the devil will be in the detail. Aside from caviar dramas, a browse of Virgin Australia’s website shows it is already busy funnelling passengers onto Qatar flights. Fair enough. But Qatar’s fares and redemptions, particularly in premium cabins, are often significantly higher than competitors, including some existing Virgin partners. 

A potential problem is not that these partners no longer exist, but that it becomes far harder to book a flight or decent redemption on the partner airline to maximise your Velocity membership. The removal of VA codes on some Singapore Airlines flights may also impact Velocity points and status-earning rates on those flights. However, Virgin is overhauling its frequent flyer program, including status and point earn rates on its partner airline earn rates, and this is a minor quibble in the wider scheme of things.

Overall, except for Etihad’s exit, it’s business as usual for Virgin’s international partnerships and critically, the ability of its passengers and frequent flyers to make use of them.