Is it Time to transfer/withdraw points from Velocity?

[Bibendum]

Hi All,

I need some advice from the brains trust on this forum.

I, like many on here, have hundreds of thousands of points sitting with velocity. With the current COVID-19 situation and virgins financial position I’m concerned that if the airline was declare bankruptcy points may disappear..

What’s the likelihood of this happening and should I withdraw my points by purchasing gift cards to get some cash value at what I have..?

am I making a mountain out of a mole hill.. or is there a real threat to my velocity points been wiped out..?

 

[ozstamps]

Well Virgin Marketing Management appear to be totally asleep at the wheel in recent weeks.

Airline is collapsing around their ears (not of their making) but not a sign of a 50% Off Points promos, universal Double SC promo, or anything even resembling a fare sale - worse deals than 2019 - Management appear in a time warp dream word that things will improve by MAGIC DUST.

Filling the far fewer planes still flying SOMEHOW, should be Priority #1, #2 and #3 in there now.

It is not, and planes are flying at 25% capacity on many routes, bleeding red ink in rivers.

Feds here gave airlines a few table scraps today, that will not touch the sides.

Another couple months of this, tops, and Virgin are gone - sadly.

I lost a million miles in the Ansett crash, and have a million plus in Virgin now. And only fools do not learn from history.

Unless someone in there comes out of their dream coma this week, and looks like creating revenue and filling seats in a big way, they are kaput sadly – and all mine are getting used somehow.

 

[hossein_au]

I don't think any amount of marketing will move the needle materially for any airline at this stage; any marketing effort will fall on deaf ears when people actively avoid travel.

Once things start to thaw, or when the 'new norm' is generally established, (that is when people are at least partially open to the idea of travel) will be the time to go to town with marketing; they need to entice every man/woman and his/her dog to start flying again, and that can only be achieved if there is a lot of marketing.

 

[ozstamps]

If Virgin offered a $999 return deal east coast to Perth in Biz a LOT woud book it.

Many folks are not spooked by this current knee jerk panic. We are not, for sure. Those that are, may choose not to fly so that is their call.

Flying 25% full cabins for 3 months is a sure way to go broke.

Yes people need to be ENTICED to get on planes and great fares will work.

Failure to do that and VERY soon will see Virgin vanish in a few months I fear. So folks will withdraw points balances as we will.

Putting their head in the sand and praying for passengers is not working. And will not work.

 

[Austman]

It's not so much the flying that's the problem. It's possibly being "trapped" at a place, away from home, if you do.

Even domestically.

Despite what is being said at the moment by the government, it's such a real possibility.

 

[MollyJones]

I’m hoping that SQ will be more secure. We have all moved all our velocity points to them. Not going anywhere in the near future now anyway.
This was going to be a very comfortable gold year, but so be it.
Hoping that was the right move

 

[jpp42]

I've cashed in 100,000 points for gift cards. Considered SQ but not sure if my current job (which used to have heavy international travel) will exist in the same form when this is all over - so gift cards seemed the safest plan. Now the question is whether they actually arrive...

 

[Wrapcity]

gift cards will not be valid for much longer either guys !!

 

[Fortheloveofflying]

I've cashed out my 150K points for JB hi fi gift cards. I ordered it late last week and the order status is still "pending". My colleagues have also cashed out their points (all in total 3M points).

 

[lovetravellingoz]

I’m hoping that SQ will be more secure. We have all moved all our velocity points to them. Not going anywhere in the near future now anyway.
This was going to be a very comfortable gold year, but so be it.
Hoping that was the right move

Ah decisions decisions.

SQ is majority owned by the Singapore Government vs Gift Cards for things I really do not need to buy....

 

[ozstamps]

I think Virgin will not be operating come June 30 - very sadly. We transferred out over a million Virgin miles today to SQ.

We all make our own decisions in life, and this is a very easy one for me, who lost a million or whatever Ansett miles. Gone forever. The “wisdom” of us all then on Flyertalk was Ansett failing would *never occur.* It did. And it occured VERY fast.

All award bookings I’d made with Ansett in their death throes were not honoured by Star partner carriers later. As will occur with all awards made on Virgin ticket stock I suspect. Delta or Etihad or SQ etc, do not get *paid* by Virgin, until that Award Ticket is taken AFAIK, and booking something now for Xmas on one of these is just a pipe dream I think.

These million Velocity cost me $50k to $100k of my own money, and darned if that is all going down the plughole. Yes I could have ordered 30 toasters or hair dryers from the web store I guess, instead!

I looked too at Gift Certs as per post above, and highest face I could see was $1000 David Jones at 188,000 each -.

Velocity Frequent Flyer

Earn Points with Australia's most popular Frequent Flyer program - Velocity Frequent Flyer, loyalty program of Virgin Australia, and Winner of Program of the Year, Freddie Awards 2020 - Middle East, Asia & Oceania. Join free today.

shop.velocityfrequentflyer.com

For a million points I'd get 5 or so of those. Firstly what can I get there that I want for $5000? And the way retail is now, are THEY going to be here next year either?

Getting SQ miles means it buys around 3 x Biz class trips to Europe worth $20,000 in my head. A better deal (to me) than $5000 to spend in DJ's!

We are both Virgin Plats for another year or two, and will still fly them obviously, and I really do hope they survive this horrible mess - not of their making - except the asleep at wheel inertia of the past week or two, with no REAL fare sales to shore up the bottom line.

For 10 years or so as Virgin Platinums we got our benefits, Virgin got our money, and everyone was pretty happy with the deal, and a vibrant Virgin kept Qantas a little more honest! Let’s all hope it stays that way for the sake of ALL travellers.

However if Virgin go belly up by June 30, which looks 99.9% certain to me sadly, the miles are now safe. Unlike the Ansett bust, who foundered in isolation, EVERY carrier globally right now is close to the wall, so no-one is about to pick over the carcasses anywhere – and there will be dozens by June 30.

If Qantas furloughed 20,000 workers of 30,000 today, the bells are ringing loudly - sadly. It is all over.

If the world carrier fleet gets down to two, SQ will certainly be *one* of those two! Plenty of pointy end award inventory, a wonderful market leading soft and hard product, and a great Star Alliance partner route network. We are both lifetime Star Alliance Golds, so a good fit really.

 

[jpp42]

gift cards will not be valid for much longer either guys !!

I got JB Hifi and Kathmandu gift cards so I think that part is okay, if I do actually get the cards.

The cards are fulfilled by a third party though. They may not fulfill them if they're worried about being paid by VA. So we'll see if I actually get them.

 

[Fortheloveofflying]

I got JB Hifi and Kathmandu gift cards so I think that part is okay, if I do actually get the cards.

When did you order them? I ordered mine last Friday and it's still stuck in "Pending".

 

[Bagpuss]

Firstly, I don’t believe Virgin will be overly enticing customers other than the current sale with points distribution. Simply, all flights could end up being cancelled if borders are closed and travel restrictions.
Secondly, should the government step in. I expect they would do so that the main airline owners transfer their shares to the Australian government. In doing so the government would probably totally devalue points dramatically.
Lots of airlines are going to pretty quickly In my opinion. The landscape in 6 months time will be different for aviation with lots of available pilots, aircraft etc.

 

[Aus ATC]

With the way businesses are structured these days, would Velocity Frequent Flyer be regarded as a separate entity to the airline Virgin Australia? Hence, if Virgin Australia folds, the VFF business remains intact - though of course redemption options would no longer include VA if that business no longer existed. The same question applies to Qantas Loyalty.

 

[jase05]

I’ve only got 300k points remaining but will hold tight. I still have hope that VA can hold on and if they survive I’ll be about the only one with points so award seats shouldn’t be hard to find

 

[lovetravellingoz]

All award bookings I’d made with Ansett in their death throes were not honoured by Star partner carriers later. As will occur with all awards made on Virgin ticket stock I suspect. Delta or Etihad or SQ etc, do not get *paid* by Virgin, until that Award Ticket is taken AFAIK, and booking something now for Xmas on one of these is just a pipe dream I think.

I had redeemed flights to Cairo return for my family of 5 on SQ which honoured them going over in December and returning in Feb.

initially SQ stated that as I had paper tickets already issued that they would honor the bookings, but no changes would be allowed at all.

However once we were in Cairo we were actually able to change our return flights at no cost so that the final transit through SIN became a stopover which allowed as to spend 2 week island hoping in Southern Thailand.

At that time with Ansett I had there top status and so had lounge access with *A Airlines. I was advised that we would have lounge access, for all 5 of us, going over but that it would expire at the end of December.

Luckily on the return trip at Cairo the lounge dragons back then had no computers and so just flashed my card and we got into the lounge. No such luck in Dubai, or SIN on the the rest of the trip as they could check and yes lounge access expired

 

[theblank]

isnt Velocity a seperate standalone business?
Aus Govt wont allow Virgin to fold anyway.

 

[AustraliaPoochie]

For Mollyjones, SQ KF do also have a use by date for their FF system points.
Theirs is 3 years from accrual to death of your points if not used.

 

[AustraliaPoochie]

isnt Velocity a seperate standalone business?
Aus Govt wont allow Virgin to fold anyway.

The Ansett levy didnt help us that much, Aud$10 per fare trip and yet AN passed away.
I think the govt would have a hands off policy re our airlines.
VA isnt really the Au national flag carrier, isnt it officially QF.