New VA carrier charge on reward seats (from 1/1/19)

[samuson]

Was just looking at the points tables at: https://www.velocityfrequentflyer.com/content/Redeem/Airlines/PointsTables/

Looks like there's a new carrier charge for reward bookings from 1 January 2019. Incredibly disappointing especially for premium/business to LAX.

 

[serfty]

Ouch! While not as onerous as what Qantas' charges, those transpacific pings will be painful.

 

[Cryptarcadian]

Wow, nicely spotted! (For a definition of "nice" from the same dictionary as "enhancement"… )

That came out of nowhere, and is very disappointing indeed! It's like VA were deliberately looking for ways to make the program less attractive than ever. In hindsight, a de facto devaluation probably shouldn't have been surprising, given the number of points they've been throwing out there.

To put a more positive spin on it: given it's nearly impossible to redeem for J between SYD and LAX anyway, the most outrageous charge of $235 will affect almost nobody anyway. Relax everyone!

Also, it looks like there's no mention of this on the points upgrade side (as opposed to outright redemptions). Let's hope it remains that way.

 

[theblank]

To put a more positive spin on it: given it's nearly impossible to redeem for J between SYD and LAX anyway, the most outrageous charge of $235 will affect almost nobody anyway. Relax everyone!.

OR, it might mean that there will be greater availability! we can only hope

 

[Silvia]

If QF can get away with outrighteous charges, I think VA is just playing the game by still just charging half of the taxes that QF would do on a J redemption to USA.

It is disappointing, but would be good to see if there are changes in availability of reward seats which seem increasingly hard to get.

 

[pauly7]

Any more good news VA / Velocity!? Talk about drip feeding the poison!! No more please

 

[coolkid101]

Virgin Australia adds 'carrier charge' fee to Velocity reward bookings

Here's the news covered on ausbt.
At least partner awards are not being affected.. That would have been even more reason to send vff across to kf with the upcoming deval

 

[kpc]

With carrier surcharges to book premium awards on EY and now on VA and DL flights bet Syd and Lax, and the lost of the alliance with NZ, an average to good FF scheme is now sh.t!

 

[CPMaverick]

Ugh. Better start burning VA points now. Paying nearly $500 just to use my points for a round trip J award is harsh. I wonder if these charges will apply to booking DL SYD-LAX flights (or if DL redemptions on VA will add these fees?)...

 

[Silvia]

Ugh. Better start burning VA points now. Paying nearly $500 just to use my points for a round trip J award is harsh. I wonder if these charges will apply to booking DL SYD-LAX flights (or if DL redemptions on VA will add these fees?)...

Yes they do, same pricing if you book DL or VA flight or coded ones.

 

[CPMaverick]

Ah, I see that now. Right there in the chart.

 

[JohnK]

If Qantas can get away with the carrier surcharges.

 

[Mattg]

Seriously, Velocity? The lack of carrier charges are one of Velocity's key competitive advantages over Qantas.

I'm also unconvinced by Velocity's excuse that they are introducing carrier charges to "cover ongoing associated costs of Velocity Reward Seats". What costs? The opportunity cost of not charging extra?

The actual amounts are at least reasonable, but Qantas' fuel surcharges also started off low (and then ballooned to the obscene amounts we see today).

The charges will be slightly more than $3.50/$5.50 for domestic flights as GST will be added.

Carrier charge quoted exclusive of GST. The carrier charge will attract the 10% Australian Goods and Services Tax (GST) an all-Domestic itinerary. GST is not payable on carrier charges for Australian Domestic flights as part of international bookings.

 

[Must...Fly!]

If this is their gateway to offering more redemption seats on flights, I suppose that's better than the current situation on LH International.

If it's just to shore up the balance sheet, this WP is waving his middle finger!

 

[henleybeach]

Not a good week for velocity, starting to feel like Etihad , every announcement is bad news

 

[kamchatsky]

Looking at this news made me glad that I redeemed a transferred a lot of points last year to redeem on SQ Js and Fs and Suites

Plus redeemed 4 * Y tix on Hawaiian as well ...... for next year with family.

Moral of the story, burn points when you can

 

[Happy Dude]

Perhaps it might be time to stop giving out FFPs like they're eccies at a music festival.

Perhaps it might be time to review one's "loyalties" too.

 

[MEL_Traveller]

Gotta hand it to the PR people writing the Velocity email I just got stating carrier charges are in line with 'local industry practice'. The words 'local industry' (ie Australia) being key. It's certainly not world-wide airline practice.

 

[eastwest101]

I just got the email 'fessing up to these changes. Although the carrier surcharges are more reasonable than QF you can bet they will only be going in one direction in the future.

People are deluding themselves if they think that availability of reward seats will improve, it's all about revenue, those new lounges and flying empty A330s to HKG have to be paid for somehow.

Interesting that the minimum domestic SC earn rises from 5 SC to 7 SC, that round of negative enhancements (was it a year or two ago?) must have really thinned out the ranks of frequent domestic travellers being able to retain their status, so a drop of status and QF being close in price to VA in a rising airfare market with capacity cuts with a more resurgent and profitable QF domestic competitor they might be losing market share back to QF.

 

[serfty]

Although the carrier surcharges are more reasonable than QF you can bet they will only be going in one direction in the future.

Current QF YQ for a one way MEL-LAX Business class redemption is $349.