In a significant move to strengthen air travel connectivity between India and Australia, Air India and Virgin Australia have announced a new codeshare partnership. The agreement, unveiled on 16 February 2025, will allow passengers to book flights on both airlines under a single ticket, providing greater flexibility and convenience for travellers. This comes as Virgin Australia solidifies its position as Australia’s leading domestic carrier, having overtaken Qantas in passenger numbers for the first time in December 2024.
Under the codeshare arrangement, Air India will place its ‘AI’ code on Virgin Australia’s domestic flights, enabling seamless connections for passengers travelling from India to key Australian cities such as Melbourne, Sydney, Brisbane, and Perth. Similarly, Virgin Australia will add its ‘VA’ code to Air India’s flights from Australia to Delhi and Mumbai, as well as select domestic routes within India. This partnership is expected to significantly enhance travel options for tourists, business travellers, and those visiting friends and family.
The timing of the partnership aligns with Virgin Australia’s recent growth in the domestic market. According to the latest Australian Competition and Consumer Commission (ACCC) report, Virgin Australia carried 35 per cent of domestic passengers in December 2024, surpassing Qantas for the first time. This growth was driven by the addition of three Boeing 737s previously leased by Rex, which collapsed in July 2024, as well as the arrival of new 737 Max 8 aircraft throughout the year. Virgin Australia also achieved the highest load factor among domestic carriers, with 93.4 per cent of seats filled on average.
Campbell Wilson, CEO and Managing Director of Air India, highlighted the strategic importance of the partnership, stating, “This collaboration with Virgin Australia marks a pivotal step in our mission to expand Air India’s global footprint. By offering seamless connections to popular Australian destinations, we aim to provide our passengers with a more integrated and hassle-free travel experience.”
Virgin Australia’s Chief Strategy and Transformation Officer, Alistair Hartley, echoed this sentiment, emphasising the benefits for Australian travellers. “This partnership with Air India opens up exciting new opportunities for our customers to explore India’s vibrant cities and cultural landmarks. It also strengthens our position as a leading carrier for international travel,” he said.
The codeshare agreement is expected to be particularly beneficial for the growing number of travellers between the two countries. India is one of the fastest-growing outbound travel markets, with a significant diaspora in Australia. According to recent data, over 700,000 people of Indian origin reside in Australia, and the number of Indian tourists visiting Australia has been steadily increasing.
The partnership will also support the broader aviation recovery in the post-pandemic era, as airlines seek to rebuild international networks and meet rising demand for travel. Both airlines have indicated that the codeshare agreement is just the first step in a broader strategic relationship, with potential plans to explore additional collaborations in the future.
Passengers can expect the new codeshare flights to be available for booking in the coming weeks, with travel commencing shortly thereafter. The partnership will also allow frequent flyers of both airlines to earn and redeem points on codeshare flights, further enhancing the value for loyal customers.
This collaboration between Air India and Virgin Australia underscores the growing importance of the India-Australia travel corridor and reflects the airlines’ commitment to delivering enhanced connectivity and customer satisfaction. As the aviation industry continues to evolve, such partnerships are likely to play a key role in shaping the future of international travel.
For more information, travellers are encouraged to visit the official websites of Air India and Virgin Australia or contact their preferred travel agent.
