VIRGIN BLUE GROUP LINKS UP WITH UAE'S ETIHAD

DUBAI, Aug 26 (Bernama) -- Virgin Blue Holdings Limited and Etihad Airways
have signed an agreement establishing a commercial partnership that will enable
the former's international arm, V Australia, to launch direct services to Abu
Dhabi in 2011.

The pact also allows the two airlines to offer a joint network of more than
100 destinations from Oct 1, 2010.

Together, Etihad and V Australia will move towards a total of 27 weekly
services between Abu Dhabi and Australia, including double-daily services
between Abu Dhabi and Sydney, daily Melbourne-Abu Dhabi flights and six
frequencies per week between Abu Dhabi and Brisbane.

V Australia will operate three Sydney-Abu Dhabi services per week from
February 2011 and three Brisbane-Abu Dhabi services per week by February 2012,
using its new fleet of three-class Boeing 777-300ER.

It will become the first Australian carrier to operate to the Middle East
since 1991, according to a statement issued following the signing of the deal
today.

From October, Virgin Blue Group customers can access Etihad's network of
65 destinations across North America, Europe, Asia, the Middle East and the
Indian subcontinent.

All Virgin Blue services will be available to Etihad customers, opening up
44 destinations in Australia, New Zealand and the Pacific Islands, and to Asia
and Los Angeles.

Virgin Blue Group of Airlines Chief Executive Officer John Borghetti said
the alliance with Etihad Airways allowed it to redefine its long-haul operation
and unlock a genuine global network that would be particularly attractive to
the company's business and international leisure travellers.

"We expect the strategic alliance to have a significant revenue and profit
upside for both carriers. Importantly, each business will immediately gain from
reciprocal traffic flow," he added.

Etihad Airways' Chief Executive Officer James Hogan said the partnership
would grow to become one of the Gulf carrier's most significant.

"We're excited to facilitate the entry of V Australia into Abu Dhabi as
the first Australian airline to fly to the United Arab Emirates (UAE).

"Australia is a critically important market for Etihad and we're very
pleased to be able to provide more capacity on our Australian routes through
this partnership," he said.

"With our combined route network, we will provide an all-important access
from Australia to both the United States and Europe, which improves our
suitability for both business and leisure travel and puts us right in the race
for major corporate travel accounts," he added.

Etihad is the national airline of the UAE, based in its capital, Abu Dhabi.

Australia-based Virgin Blue Group of Airlines includes Virgin Blue,
short-haul international airlines Pacific Blue and Polynesian Blue - the joint
venture with the Samoan government.

It also includes long-haul international carrier V Australia.

The four airlines operate a fleet of 88 Boeing 737-NGs, Boeing 777 and
Embraer E-Jet aircraft to 31 Australian and 17 international destinations.
-- BERNAMA