Etihad steps in after Qantas pulls Tourism Australia deal

Tourism Australia has signed a three-year marketing agreement with Etihad Airways worth $6 million as the peak body moves to fill the gap created by the loss of funding from Qantas.

The announcement of the partnership with Etihad comes on top of Virgin Australia announcing it had doubled its marketing partnership with Tourism Australia in a new deal worth $12 million over the next three years.

Tourism Australia Managing Director Andrew McEvoy said the memorandum of understanding with Etihad - the airline's first with the peak body - would target visitors from the Middle East, United Kingdom and Europe.

In a statement McEvoy explained "in just five years of flying to Australia, Etihad Airways has demonstrated a strong and growing commitment to its Australian operations."

Etihad Airways Chief Executive James Hogan said Australia was an important market to the Abu Dhabi-headquartered carrier, with 16% of the airline's seat capacity dedicated to flights into and out of the country.

Hogan added "Etihad Airways and Tourism Australia have already started planning a major campaign for the first half of 2013 - together with Virgin Australia - in order to leverage the synergies of the airlines' joint networks and cooperative marketing spends."

Abu Dhabi-based Etihad holds about 10% of Virgin Australia stock and the two carriers formed a global alliance in 2010.

In November, Qantas Chief Executive Alan Joyce ended the airline's partnership with Tourism Australia.

At the time of the termination, Qantas was in the last year of a three-year partnership with Tourism Australia worth $44 million.

16th December 2012 - VIRGIN AUSTRALIA STEPS IN TO WORK WITH TOURISM AUSTRALIA