Virgin Australia renews cargo deal with Virgin Atlantic Cargo

Virgin Atlantic Cargo will continue to provide international long-haul cargo sales and management for Virgin Australia through a new, long-term agreement that was renewed between the two airlines.

Despite their similar names, the two carriers are distinct airlines. Richard Branson, founder of the Virgin brand, is no longer among the top 20 shareholders in the airline and the Australian brand is largely owned by Air New Zealand, Etihad and Singapore Airlines.

The terms of the deal are as follows: Virgin Atlantic is responsible for all cargo revenues on Virgin Australia’s long-haul flights – operated by Virgin Australia’s jets – between either Sydney or Brisbane and Los Angeles.

Once Virgin Australia’s 777s arrive in Los Angeles, cargo is shifted onto Virgin Atlantic’s worldwide cargo network. In addition, Virgin Atlantic will market cargo capacity on Virgin Australia’s Sydney-to-Abu Dhabi routes, once they resume in September.

According to Phillippa Palmer, Virgin Atlantic Cargo’s regional sales manager for Australia & New Zealand, “total volumes ex-Australia to the U.S. increased by 5 percent, year-on-year, and ex-U.S. to Australia by 4 percent in what was, and remains, a highly competitive market.”