Virgin Australia is unexpectedly ending its longstanding with Delta Air Lines after cementing a new partnership with United Airlines that will triple the airline’s reach into the Americas. The announcement takes the gloss off Delta’s same-day announcement about it expanding its global reach via equity stakes in other airlines.
United taps into Australian feeder traffic at Delta’s expense
The announcement deprives Delta’s daily Los Angeles – Sydney of feeder traffic at the Australian end. Competitor American Airlines enjoys feeder traffic from the Qantas domestic network, and now United Airlines (who normally have the most comprehensive network into Australia of any US carrier) can tap feeder traffic from Virgin Australia’s domestic network.
“Virgin Australia is the perfect partner for United,” says United CEO Scott Kirby. “Our partnership provides considerable commercial value for both airlines and a shared commitment to offer the best travel experience for our customers.”
United currently offers daily direct flights from San Francisco and Los Angeles to Sydney, while other services including flights from Houston and direct services to Melbourne are expected to resume later in 2022. Under this new partnership, United’s customers will now have access to top Australian destinations including Brisbane, Perth, and Adelaide.
Nice to know you, Delta, says Virgin Australia
In the other US-bound direction, the partnership will triple the number of US cities Virgin Australia customers can reach. The new partnership will offer 92 one-stop connections to points across the United States. Frequent flyers on both airlines will receive reciprocal benefits. These benefits include priority check-in, priority boarding, priority baggage delivery, additional baggage check allowance, priority security clearance, and lounge access.
“We are grateful to have such a strong partner in United,” says Virgin Australia CEO Jayne Hrdlicka. “They have proudly been one of Australia’s most loyal and long-serving aviation partners and their market strength both to Australia and in the United States brings great value to our guests.”
In a statement, Virgin Australia confirmed their decade-long partnership arrangement will end next year.
“We’d like to thank Delta Air Lines for their long-standing commitment and relationship with Virgin Australia,” said Ms Hrdlicka. “As a strategic partner with Virgin Australia for many years, Delta Air Lines has shared a wonderful journey with us, and we appreciate and value the many achievements we made together.
“We will work closely with Delta over the coming months to transition our Velocity partnership, and of course, all bookings will continue to be honored when Delta customers fly on Virgin Australia.”
Jilted Delta left to go it alone in Australia
In 2019, the last year of uninterrupted flying, more than 3.3 million people flew the US – Australia country pair. The Los Angeles – Sydney city pair one of Australia’s busiest and most hotly contested international airline routes.
Virgin Australia did fly between Brisbane, Sydney, and Melbourne to Los Angeles. Last year, the airline ended the flights and sold the operating aircraft. That leaves United, Delta, American, and Qantas to duke it out on nonstop routes between the two countries.
To help load the big planes at either end, feeder traffic from other cities is critical – and the loss of that will place Delta at a significant disadvantage, at least at the Sydney end.
Simple Flying has approached Delta Air Lines for their response to Virgin Australia’s new North American partnership arrangements. We have not received a response before the publication deadline.
Virgin Australia advises it will be wheels up on their new partnership with United by April 2022.
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