Virgin Australia in Voluntary Administration
As you’re probably aware, Virgin Australia entered voluntary administration on 21 April 2020. Virgin Australia continues to operate scheduled flights but the administration process is expected to take at least until the end of June 2020, and possibly longer.
The Australian Frequent Flyer has published a comprehensive summary of the voluntary administration here and an update on the airline’s financial situation as of 1 May here.
Although 100% owned by Virgin Australia, the Velocity Frequent Flyer loyalty program is a separate entity and is not currently in voluntary administration. Velocity assures its members that the value of existing Velocity points is backed by a trust and that Velocity points are safe. However, the ability to earn or redeem Velocity points is currently severely limited.
Here’s a summary of how Velocity Frequent Flyer is affected by the current situation, as of 7 May 2020:
- Velocity redemptions have been paused for an initial period of 4 weeks, starting from 21 April 2020. This period will almost certainly be extended.
- Velocity points will not expire during the redemption pause (the expiry date of all Velocity points will be extended by the length of the “pause” period)
- Velocity redemptions made prior to 21 April will be honoured, but there delivery delays
- It is still possible to earn Velocity points. But all Australian banks have temporarily blocked the ability to transfer points from a credit card rewards program to Velocity Frequent Flyer
- Applications for new Velocity co-branded credit cards have been suspended. If you already have a credit card that earns Velocity points directly, you will continue to earn points but may have an option to change to a different credit card (especially if you have an American Express card – see here for Amex info)
- Virgin Australia travel credits remain valid, but Virgin Australia is not currently processing any new refunds or travel credits
Meanwhile, Virgin Australia has launched a range of initiatives in response to the COVID-19 travel restrictions:
- Silver, Gold & Platinum members of Velocity Frequent Flyer (as of March 2020) will have their status automatically extended for 12 months on their next review date
- Silver, Gold & Platinum Velocity members are also receiving a monthly status credit “gift” in April, May & June 2020
- Paid Virgin Australia Lounge members will have their memberships extended by six months
If you’re a Premium Economy, Business Class or First Class member, be sure to attend the next webinar on 27 May 2020 for an update of the situation with Virgin Australia & Velocity Frequent Flyer. The webinar will also feature lots of tips for maximising your points on the ground!