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..?

 

[Bct]

Anyone else had issues getting their redeemed gift cards? I've received 8 out of 9 but nothing for over a week now. Completed contact form yesterday to query with Velocity.

 

[Legoman]

true especially for meal service

Most people I see hang them off the straps sewn into the headrest backs of the seat in front which is up and away from the tray table.

 

[Mattg]

Anyone else noticed that Velocity has used the resumption of domestic flight redemptions as an excuse to reinstate the expiry of Velocity points?

From the email sent to members:

While redemptions were paused, your Points remained in your account and we extended the expiration period and your Points haven’t expired. Now that the pause on domestic redemptions has been lifted, we’ll revert to our standard terms and conditions on expiry

 

[tomlee1986]

Most people I see hang them off the straps sewn into the headrest backs of the seat in front which is up and away from the tray table.

I learn something everyday as i dont fly often... thx for telling me this

 

[BNEFlyer]

I’d bet my house on the fact most people have tossed their Velocity earning cards in a cupboard until VA2 emerges.

I've got a Velocity Platinum Amex, still using it, still earning points. And planning on using points to upgrade flights I booked today.

 

[AIRwin]

And planning on using points to upgrade flights I booked today.

When is your flight - full business class service?

 

[BNEFlyer]

When is your flight - full business class service?

November, so should be full J service. Provided the Government allows interstate travel by then (QLD to NSW).

 

[serfty]

Most people I see hang them off the straps sewn into the headrest backs of the seat in front which is up and away from the tray table.

Of course, one has to be flying on of the few Qantas aircraft fitted with these - and it does not assist with netbooks.

 

[Bundy Bear]

So there's a theory being floated around on that.

The theory is that Virgin Australia needs money, and a lot of it, and fast - reported in FFX today that Virgin has but $100m left in the kitty, and there are serious concerns it will run out of money before its new owner is chosen, let alone signs on the dotted line (as there's still a cash burn going on even now).

Hence, unlocking Velocity redemptions is expected to see people turning Velocity points into Virgin Australia seats, at which point Virgin can hit up the Velocity trustee for the value of those seats and get some of those Velocity dollars flowing its way.

This could also explain why the Velocity Rewards online shopping store is not yet active - as points would flow out to partners and cost money, rather than flowing back to Virgin.

I'm not sure I subscribe fully to this theory, although I can see why it's been put forward.

One reason for my hesitancy is, how much money does Virgin really expect to claw back from Velocity for domestic-only bookings, given such uncertainty around the airline and travel right now? Also: if you really wanted to rake in that cash, wouldn't you make redemptions available on all routes?

A few other reasons I don't buy this fully at the moment, but you can see some logic behind it...

Thanks David you raised some good points.

I went looking for a flight to redeem using points.
I thought about redeeming a flight on points even just for a day trip to some place like Cairns, my points are likely toast but I have 70,000 points to use I could just fly to Cairns and back.

Has anyone been able to redeem a flight using points from 1 September, it just ended up as an error.

Edit;

Ok you can only redeem on that current cough schedule so a flight like Brisbane to Cairns and return is only available during the week days.

 

[BNEFlyer]

I've got a Velocity Platinum Amex, still using it, still earning points. And planning on using points to upgrade flights I booked today.

So Velocity points can only be used for redemptions at the moment, not upgrades.

 

[Legoman]

Of course, one has to be flying on of the few Qantas aircraft fitted with these - and it does not assist with netbooks.

The only place I can get a laptop far enough away from me to be able to focus on the screen is in business class and if you're in business class then any issues to do with space restrictions are moot.

 

[Legoman]

So Velocity points can only be used for redemptions at the moment, not upgrades.

That sentence definitely didn't need to begin with a "So". I spent a few seconds trying to find the other response you were replying to that justified a "So". But yes, it is becoming apparent that this re-opening of Velocity is a cynical exercise to try and grab some media rather than any genuine effort at allowing people to redeem their points for anything they actually want. It's all about using Velocity for Virgin's advantage, not the customers'.

 

[BNEFlyer]

That sentence definitely didn't need to begin with a "So". I spent a few seconds trying to find the other response you were replying to that justified a "So". But yes, it is becoming apparent that this re-opening of Velocity is a cynical exercise to try and grab some media rather than any genuine effort at allowing people to redeem their points for anything they actually want. It's all about using Velocity for Virgin's advantage, not the customers'.

I assumed upgrades would be available because redemptions were, hopefully they will be soon. Though using points to book flights is a good thing, and possibly more common than using them for upgrades.

 

[jakeseven7]

I've got a Velocity Platinum Amex, still using it, still earning points. And planning on using points to upgrade flights I booked today.

I’m sorry you have so many points stuck in there and hope the VA2 that pulls through allows you to use them.

 

[HappyFlyerFamily]

Not that it was in doubt, but dining plates (PopInk) and iron (druin) arrived today and iPad (harvey Norman) arrive on Tuesday.all from the rewards store, ordered in the last hours on 21/4.

for what it’s worth, it’s a shame velocity probably is handing over money/cash to fulfil member’s flight redemption. We don’t even know if Virgin Australia Mark 2 is full service or not. It will make them a bigger creditor than they already are in the event Virgin cancels or member cancels. All to fix Virgin‘s pending cash issue.

if the flight redemption was a way for velocity to collect back on its loan to Virgin then that would have been better.

 

[tomlee1986]

Not that it was in doubt, but dining plates (PopInk) and iron (druin) arrived today and iPad (harvey Norman) arrive on Tuesday.all from the rewards store, ordered in the last hours on 21/4.

for what it’s worth, it’s a shame velocity probably is handing over money/cash to fulfil member’s flight redemption. We don’t even know if Virgin Australia Mark 2 is full service or not. It will make them a bigger creditor than they already are in the event Virgin cancels or member cancels. All to fix Virgin‘s pending cash issue.

if the flight redemption was a way for velocity to collect back on its loan to Virgin then that would have been better.

it is sad to see this, but the members normally think of themselves first (I plead guilty too - FYI) instead of saving the company.. that is human nature

 

[hydrabyss]

it is sad to see this, but the members normally think of themselves first (I plead guilty too - FYI) instead of saving the company.. that is human nature

Considering this is a Virgin frequent flyer forum would not saving the company be a members first choice.

 

[jakeseven7]

Considering this is a Virgin frequent flyer forum would not saving the company be a members first choice.

Logically yes but reality - obviously not because we were given great intel weeks in advance that VA1 was going to fail - and it did. Faced with that most evacuated their points to SQ or redeemed in the store.

But at the end of the day AFF represents probably 2/5 of sweet nothing in respect to VA/VFF anyway and the public made their mind up on VA1 as well, cashing in their points as well.

 

[Legoman]

it is sad to see this, but the members normally think of themselves first (I plead guilty too - FYI) instead of saving the company.. that is human nature

The members are not really responsible for what has been revealed to be a horribly managed airline from the get go basically, that left themselves no headroom for a rainy day by constantly operating at a loss and in huge debt.

This was largely inevitable. If a pandemic didn't get it, then war or high oil prices or weather destruction or something else would have. Companies cannot operate in perpetuity at a loss year after year avoiding domestic company tax. Virgin made razor thin paper profits in 2 of the last 20 years. That was never going to continue.

 

[tomlee1986]

The members are not really responsible for what has been revealed to be a horribly managed airline from the get go basically, that left themselves no headroom for a rainy day by constantly operating at a loss and in huge debt.

This was largely inevitable. If a pandemic didn't get it, then war or high oil prices or weather destruction or something else would have. Companies cannot operate in perpetuity at a loss year after year avoiding domestic company tax. Virgin made razor thin paper profits in 2 of the last 20 years. That was never going to continue.

of course the members are not responsible for such a loss to the company, the management are... but for those that say redeeming points will lead to a cash drain, that it is true to a small extent

Considering this is a Virgin frequent flyer forum would not saving the company be a members first choice.

The problem is how the members can save this company? I dont see much sense in asking the members to save a company, shouldnt that be the administrator's responsibility?