Virgin Australia strikes deal with Etihad-backed Alitalia

Virgin Australia has struck a new code-sharing agreement with Etihad Airways-backed Alitalia,​ at a time when some analysts doubt whether the Abu Dhabi-based carrier will remain a shareholder in the Australian airline over the longer term. The new deal will cover Italian carrier Alitalia's daily flights from Abu Dhabi to Rome and Milan, destinations to which Virgin already offers code-shares through Etihad and Singapore Airlines. A reciprocal frequent flyer arrangement is expected to follow soon. Until March, Alitalia had a code-share and frequent flyer agreement with Virgin rival Qantas, a legacy from before Etihad bought a 49% stake in the financially troubled Italian carrier, as part of a E1.76b deal in 2014. In December, Australian Cramer Ball, the former head of Etihad affiliate Jet Airways, was appointed the new CE of Alitalia. Etihad owns a 25.1% stake in Virgin Australia. Air New Zealand has placed its 25.9% stake in the Australian carrier for sale, in a move that could result in significant shifts on the share register. However, aviation experts view SIA as a more likely buyer of the Air New Zealand stake than Etihad.<br/>