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Details of recent Qatar Airways & Virgin Australia strategic partnership
Qatar Airways and Virgin Australia have introduced plans to launch a strategic partnership across the center of 2022 (the precise date hasn’t but been revealed). With this new partnership, Qatar Airways passengers will get entry to 35 Virgin Australia locations throughout Australia, whereas Virgin Australia passengers will get entry to greater than 140 Qatar Airways locations worldwide.
This partnership will embrace:
- A codeshare settlement, whereby passengers will be capable of seamlessly e-book itineraries that embrace journey on each airways
- Reciprocal factors incomes alternatives, that means that Qatar Airways Privilege Club members can earn Avios when flying on Virgin Australia, and Virgin Australia Velocity members can earn factors when flying on Qatar Airways
- Reciprocal elite perks, together with lounge entry, additional baggage allowance, precedence check-in, precedence boarding, precedence baggage supply, and extra
Here’s how Qatar Airways CEO Akbar Al Baker describes this new partnership:
“We have a strong, long-standing 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.”
Here’s how Virgin Australia CEO Jayne Hrdlicka describes this new partnership:
“Today is more great news for Virgin Australia and Velocity Frequent Flyer members who are hungry to travel internationally. We are incredibly focused on creating great travel experiences and our new partnership with Qatar Airways will significantly expand Virgin Australia’s footprint into the Middle East, Europe and Africa, offering hundreds more ways our guests can seamlessly see the world.”
But what about Qatar Airways & Qantas?
Typically airways kind partnerships to fill a community hole that isn’t at the moment served, and that’s additionally what makes this partnership so fascinating. Qatar Airways and Qantas are each a part of the oneworld alliance, so Qatar Airways passengers have already got entry to an intensive community in Australia, reciprocal factors incomes and elite perks, and extra.
From Virgin Australia’s perspective this partnership makes excellent sense:
- Virgin Australia has discontinued lengthy haul flying, so the airline is now targeted on quick haul flying; forming partnerships with as many lengthy haul carriers as attainable is sensible, because it’s a method to fill seats
- Virgin Australia doesn’t belong to any main alliance, and particularly since rising from chapter safety, the airline appears to be open to simply about any partnership that is sensible (for instance, Virgin Australia dumped Delta in favor of United, provided that the latter has an even bigger community in Australia)
- While Virgin Australia additionally companions with Etihad Airways, Etihad isn’t almost as massive as Qatar Airways, and there are additionally a number of airways that accomplice with each Etihad and Qatar
From Qatar Airways’ perspective this partnership is a little more complicated. Virgin Australia doesn’t provide a lot service that present accomplice Qantas doesn’t provide, so the value-add for frequent flyers is pretty restricted. What’s the motive for Qatar Airways, then? The manner I view it, there are a number of attainable explanations (or maybe it’s a mixture of those elements):
- Airlines are finally free to kind their very own partnerships past alliances; for instance, Qantas and Emirates have lengthy had a partnership, so Qantas’ relationship with Emirates has been nearer than its relationship with fellow oneworld member Qatar Airways
- In common there was some unhealthy blood between Qatar Airways and Qantas; again within the day when Al Baker was threatening that Qatar Airways would depart oneworld, Qantas CEO Alan Joyce mainly inspired him to take action
- I suppose from Qatar Airways’ perspective, if there’s not a non-compete clause, the airline would possibly as nicely kind partnerships with as many Australian airways as attainable, as that can simply result in extra passengers connecting onto Qatar Airways flights
- I ponder if Qatar Airways’ phrases with Virgin Australia are merely higher than with Qantas, by way of income sharing, price of offering reciprocal advantages, and so on.; I assume we’ll see primarily based on how reserving choices are prioritized
- There undoubtedly appears to be a little bit of shade in all of this, as Qatar Airways refers to Virgin Australia as “Australia’s most loved carrier”
Bottom line
Qatar Airways and Virgin Australia have introduced a brand new partnership, which can launch across the center of 2022. This will embrace a codeshare association, and reciprocal factors incomes and elite advantages.
What makes this so fascinating is that Qatar Airways and Qantas are each a part of oneworld. Typically new partnerships are fashioned in underserved markets, however that’s probably not the case right here. I’m curious to see how this performs out, and what this implies for the connection between Qatar Airways and Qantas.
What do you make of the brand new Qatar Airways and Virgin Australia partnership?
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