Major changes to Velocity Frequent Flyer announced 17/10/24

[moa999]

The Qatar investment probably doesn't help with the joining of an alliance.

Agreed.
But in a two airline market where the other airline is in an alliance it's always been more in Virgin's interest to stay unaligned and get the majority of traffic from both star and Skyteam.

The last 10yrs have also shown that even deeper relationships (JVs) are out of alliance partnerships are often more valuable than alliance memberships.

 

[RooFlyer]

That's correct although one must wonder how big of an issue that was for them. Lounges may have been packed but one must wonder how much of that was from travellers with status versus those on a business ticket or with a credit card?

Don’t care - as long as there’s fewer of them overall.

I wonder why that is?

on the Qantas side of the coin, they just say that the dishwasher is broken (which I’m sure is the case).

 

[Lynda2475]

NZ only finished off what News Corp/TNT started by having no idea on cleaning up their financial mess.

Sure but they poached the good aircraft and sealed Ansett's fate.

Not to mention neither Air NZ nor Star Alliance honoured award redemptions made before the announcement.

I had a *A RTW redemption which included no Ansett Flights just Singapore Airlines, United , Air NZ and Air Canada and they cancelled the ticket; along with the SYD-AKL RTN I had.

 

[kamchatsky]

It is simply in the best interest for VA not to be aligned to any alliances. They can strike partnerships and JV with a greater number of airlines than what *A and ST can provide

 

[kangarooflyer88]

Ansett were basically unable to make the transition from the two-airline policy, where the two airlines basically competed on service, to a deregulated environment, where airlines competed more on price.

Sure but they poached the good aircraft and sealed Ansett's fate.

Not to stray too far off the topic of this thread which is all about Virgin Australia's recent enhancements to their frequent spender program, but thought I'd point out that Ansett's acquisition of East-West airlines didn't help. Sure it may have helped expand their route network, but it also introduced a new limitation: they could only fly in an east-west direction thereby making lucrative markets like the golden triangle inaccessible. That's my dry humour for the day.

Not to mention neither Air NZ nor Star Alliance honoured award redemptions made before the announcement.

I had a *A RTW redemption which included no Ansett Flights just Singapore Airlines, United , Air NZ and Air Canada and they cancelled the ticket; along with the SYD-AKL RTN I had.

Presumably you could've taken those flights and if turned away simply booked new flights and sent the bill to the airlines under the Montreal Convention (or the Vienna Convention if that was the statute that applied in that instance). Sure the travel agency went out of business, but you held confirmed reservations and the Montreal Convention holds the airlines operating the flights, not the travel agents liable for disruptions like these (as they should).

Don’t care - as long as there’s fewer of them overall.

Well if very few people got in via status, then these changes won't have much of an impact. At the same time, I think Virgin's lounge access policy is too generous. In particular, Platinum members can bring in 3 guests. This is a perk not even Qantas offers and mind you Qantas has built two separate lounges at most major airports to reduce the chances of their lounges being rammed.

on the Qantas side of the coin, they just say that the dishwasher is broken (which I’m sure is the case).

Wait Qantas has a dishwasher now? Since when was that a thing?!

It is simply in the best interest for VA not to be aligned to any alliances. They can strike partnerships and JV with a greater number of airlines than what *A and ST can provide

That may be so. Certainly Emirates has shown that being part of an alliance is not necessary. However, many airlines have also shown that one can exist within an alliance whilst having many mistresses on the side. Qantas does this as a OneWorld member holding partnerships with Air France, KLM and China Airways on competitor SkyTeam. Air Canada does this with Emirates and Etihad despite AC being a member of Star Alliance. And for completeness, Delta does this with LATAM despite Delta being a member of SkyTeam.

 

[HS-TQE]

It is simply in the best interest for VA not to be aligned to any alliances. They can strike partnerships and JV with a greater number of airlines than what *A and ST can provide

JVs cost money/OpEx to set up, even if a partner operates zero metal in the JV (eg the EK/QF JV where EK operates 100% of the services).

VA has given zero indication of going past the codeshare and FF agreements by entering JVs under Private Equity ownership.

Likely will have to wait till QR/The IPO goes past the approval processes and the handover is completed before VA and Joint Ventures are considered again.

 

[n7of9]

I've noticed two sides in this thread - those who will be affected by the lower SC earn who emphasise the 'frequent' part of the program, and those affected by the devaluation of their 'loyalty' to the the program. I think both sides are valid in their disappointment and my key outtake from reading these pages is that they've sha-t on their frequent and loyal members. Whether you've attained status by flying on lots of cheap seats frequently, or by spending more on VA and their partners for you and your family pool, we were all working with the same criteria so one type of elite is not more valuable than another.

For myself, I've been either SG or WP for most of the last 12 years (based on having joined AFF in 2012 and quickly 'learning'). Originally it was because you needed min. SG for a points upgrade from Y+ to J on VA1 SYD-LAX. By the time that disappeared I was 'used to' the status and kept it up, and as a solo self-funded leisure traveller it was always 'fun' to figure out where I would go next based on maximum SC earn.

The last couple of years I've been meaning to sit down and properly work out whether VFF status is valuable to me at all as (A) I use very few status perks, and (B) they don't fly anywhere I want to go. As it seems VFF has now answered that for me, I feel so free! I can now use my points* for flights that give zero status credits; I can fly routes and airlines without being tethered to Velocity (airlines that actually have their own international lounges); and I don't have to pretend that being WP on an airline that doesn't even have flat seats is anything to aim for.

I'll miss the priority check-in and boarding, but that's still a couple of years away with plenty of time to put on my big girl pants on and get over it, and savings on sale fares from other airlines will be used on the AMEX PC - I could never 'justify' the cost of the card as well as keeping up VFF status, but my new freedom now makes it a very pleasant and viable option.

LTG would have been something to aim for, but I feel their lol some of your previous SC's now aren't worth sht bait 'n switch is highly distasteful, and not something I want to reward with my loyalty. They should have at the very least had the LTG data available to all members at the same time as the announcement.....simple....fair.

*just crossed the 1M threshold, today in fact!

 

[BrianQQ]

As well as QR being in OW, within OW they own 25% of IAG (BA and IB), 10% of Cathay an 49% of Rwandair (rumoured as a potential OW member). They'd have to either

Air China owns a larger stake in CX, yet is still happy for it to be in OW so I don't see why VA cannot be in *A, considering its partners of AC, NZ and SQ are of *A.

Do not disagree with the sentiment that they are gonna take yoinks to join an alliance, if ever though.

It is simply in the best interest for VA not to be aligned to any alliances. They can strike partnerships and JV with a greater number of airlines than what *A and ST can provide

Really?

Because from what I see it, watered-down agreements with lounge access and uh.. whatever the Hainan Airlines partnership is, is proving not to work well with Velocity as it stands.

 

[HS-TQE]

Air China owns a larger stake in CX, yet is still happy for it to be in OW so I don't see why VA cannot be in *A, considering its partners of AC, NZ and SQ are of *A.

Do not disagree with the sentiment that they are gonna take yoinks to join an alliance, if ever though.

VA 1.0 had karge stakes by both SQ and NZ simultaneously at one point, yet decided to remain outside of the Alliances under both Borghetti and Scurrah.

VA.1.0 also had deeper JVs with rivals EY and DL (Skyteam) which were formed back in the DJ era, which both are now dissolved (replaced by the QR and UA codeshare partnershops) when VA 2.0 emerged from bankruptcy.