Qatar Airways has taken a 25% stake in Virgin Australia, a move that could open new opportunities for Velocity members and expand Virgin’s global reach. While the agreement is subject to regulatory approval, the deal could bring big benefits for frequent flyers.
Here’s what this development could mean for your points.
Virgin Australia to return to long-haul flying
A key highlight of the deal is Qatar Airways’ provision of wide-body aircraft to Virgin Australia through a ‘wet lease’ agreement.
Subject to regulatory approval, this arrangement, where Qatar will supply both the planes and crew, allows Virgin to re-enter the long-haul market by mid-2025. Virgin will operate flights from Sydney, Melbourne, Brisbane, and Perth to Doha, providing Australian travelers with more international options.
Currently, Velocity members have very limited options for redeeming points on Virgin Australia flights due to the airline’s small global network, so this development could open up more opportunities for long-haul international redemptions using Velocity points.
Will we see increased Qatar award space for Velocity members?
Through an established partnership with Qatar Airways, Velocity members already have the ability to earn and redeem points on Qatar flights, enjoying access to premium award seats on long haul routes.
Qatar’s new ownership stake in Virgin could enhance that relationship further, offering even more opportunities to book Qatar’s lauded business class QSuites, along with first-class seats. Whether this leads to increased award availability remains to be seen.
Could Velocity’s points currency switch to Avios?
One area of interest is whether Velocity might eventually adopt the Avios currency, which Qatar Airways uses in its Privilege Club.
While in theory, this could happen down the track, a full transition to Avios seems unlikely. Velocity boasts a wide range of brand partnerships, especially in the financial services sector. Switching from Velocity points to Avios would likely complicate these relationships.
What does a Qatar ownership stake mean for Virgin Australia’s other airline partnerships?
In recent years, Virgin Australia has inked an impressive number of partnerships with leading airlines like Singapore Airlines, United, and Etihad.
These agreements not only allow Velocity members to earn and redeem points across international routes, but also unlock reciprocal status benefits with select airlines.
It’s very unlikely that Virgin will sever these existing ties, as partnerships with airlines like Singapore Airlines remain key to its network. However, Qatar may take center stage for long-haul flights to Europe and the Middle East, while Singapore Airlines and United could continue to dominate routes to Asia and the Americas. This balancing act will be interesting to watch as the partnership evolves.
What impact will this have on Qantas Frequent Flyer?
For Qantas Frequent Flyer members, Qatar’s deepening ties with Virgin could shift the landscape for premium rewards access.
Despite both airlines being part of the oneworld alliance, Qantas Frequent Flyer members currently have very limited access to Qatar’s premium cabin award space.
A search on the Qantas website shows that most Qatar award space is offered in economy and occasional last-minute premium availability. In contrast, Virgin Australia’s Velocity Frequent Flyer program already enjoys wide access to Qatar’s coveted, long haul premium award space. With Qatar Airways now taking a 25% stake in Virgin Australia, this disparity could grow.
For Qantas Frequent Flyer members, this means that securing a Qatar Airways business or first-class award seat – already a difficult proposition – may become even more challenging. It may also prompt savvy frequent flyers to diversify their points holdings or look at alternative routes and partners.
Final thoughts
The strengthened Qatar and Virgin Australia partnership marks an exciting development in the Australian aviation landscape.
While subject to regulatory approval, with the introduction of long-haul services under a wet lease and the potential for better access to premium seats, frequent flyers stand to gain from these developments.
While you’re here: Subscribe to our newsletter for the latest tips, deals and news. It only takes a few seconds and we respect your privacy:
