The airline announced its new policy today, saying it was expected to launch within 12 months following regulatory approval.
It will see Australia for the first time following North American airlines such as United Airlines and Air Canada.
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The service will be limited to “small” cats and dogs on specific domestic routes.
Pets will also be restricted to a limited number of designated rows and will not be allowed to roam freely or sit on laps.
They will also have to be carried in a Virgin Australia-approved pet carrier under the seat in front of the owner for the duration of the flight.
“Overwhelmingly, our guests tell us they want to travel with their pets, and we are now on a journey to make that a reality,” Virgin Australia CEO Jayne Hrdlicka said.
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“It’s something that commonly happens overseas and is proven to work well.”
Further information, such as the fee for bringing a pet, and the routes the service will be available on, will be revealed later.
The new service for pets also won’t change the policy around approved assistance animals, which will continue to be able to travel in the cabin at no extra cost.
Pets will also still be able to travel as cargo.