Virgin Australia cuts staff deal with Brunei airline over Sharia law

The Australian arm of Richard Branson's Virgin Airlines has cancelled a staff travel agreement with Brunei's national carrier in response to the Asian nation's adoption of sharia law, including the death penalty for gay sex, the airline said Thursday.

The agreement allowed Virgin staff to book discounted tickets on Royal Brunei flights for leisure travel.

The company, Australia's second-biggest airline after Qantas, sent an email to employees explaining the new Sharia code, which came into effect on Wednesday, applies to Muslims, non-Muslims and foreigners "even when transiting on Brunei-registered aircraft and vessels."