Etihad has struck a deal with Virgin Blue in Australia enabling passengers to connect between the two airlines. Virgin Blue flies to 22 destinations in the country. The Abu Dhabi-based carrier currently flies daily between Abu Dhabi and Sydney, and will increase that service to 11 flights a week early next year. In September, the airline added three flights a week to Brisbane. The deal comes weeks after Etihad's local rival Emirates rejected speculation about a possible takeover of Virgin Blue.