Points to use

[rfc4eva]

ive got about 670k i was saving for a europe trip in business,my question is are Virgin likely to never resume long haul and just stick to domestic.Feels like a massive waste of points that i acculamated pre covid.

 

[AustraliaPoochie]

Think we are stuck with it (VA2) and JH as it is for a (long) while.
Not much hope any A350 or B787s will join them for a long while.
Our PM has kept borders closed for so long now, apart from Covid repat flights.
Partner flights might come back first, maybe go for that.

 

[antycbr]

ive got about 670k i was saving for a europe trip in business,my question is are Virgin likely to never resume long haul and just stick to domestic.Feels like a massive waste of points that i acculamated pre covid.

When international travel resumes the partners such as SQ will come back in my opinion otherwise Velocity will lose value rapidly and the FF program is most airlines biggest profit centre - from selling points to the banks. Bain won’t want to lose that value for when they sell the airline.

Given we nearly had all points lost if VA went bankrupt, the current situation is better than nothing.

 

[Mattg]

I would expect Virgin to resume allowing redemptions on international partner airlines once borders open back up. I don't think there are any plans *not* to do this.

However, I have stopped actively earning Velocity points while doubt remains over this because I usually redeem points for international travel. I also doubt transfers to KrisFlyer will return.

 

[HS-TQE]

When international travel resumes the partners such as SQ will come back in my opinion otherwise Velocity will lose value rapidly and the FF program is most airlines biggest profit centre - from selling points to the banks. Bain won’t want to lose that value for when they sell the airline.

Given we nearly had all points lost if VA went bankrupt, the current situation is better than nothing.

Considering all JVs negotiated under Virgin Aus mk 1 have expired or is expiring shortly. I can't see those coming back in their pre-COVID states.

The now 'infamous' loss-making Krisflyer/Velocity transfer program is less likely to come back unless if "there's something in it for Bain" - e.g SQ 'paying' Bain to operate the transfer program.

As for international partners resumption, it's unlikely any new JVs will come out of it. Instead a full proper codeshare and FF redemption agreement for the 'Big 3' (SQ, EY, DL) and any future partners would likely be the case, similar to the negotiated VA/AC agreement which would only come into force once the international borders open.

 

[Mattg]

It's perhaps worth mentioning that Velocity specifically said in January 2021 that you would be able to redeem points for Air Canada flights once international redemptions resume. So they're not planning to remove partner redemptions entirely.

 

[AustraliaPoochie]

Several ways of collecting VA points, (and to a lesser extent, FB points), have gone.
Not sure what plans VA2 has for the future, ie, (maybe another prepaid card points earning system, and another utility/mobile phone) VA points earning system might replace the 2 we lost.
Otherwise, QF will win over in these 2 scenarios.

 

[NoName]

Why are people ruling out KF transfers coming back? Surely something like that could be pure profit for VA. SQ effectively sells KF miles to VA and then VA put a margin on them to sell to their members. Wouldn’t that be beneficial to both airlines plus their member base? What am I missing?

 

[HS-TQE]

Why are people ruling out KF transfers coming back? Surely something like that could be pure profit for VA. SQ effectively sells KF miles to VA and then VA put a margin on them to sell to their members. Wouldn’t that be beneficial to both airlines plus their member base? What am I missing?

There's a very slim chance of the transfer coming back, however considering the program's history of losses for VA (considering the one-way traffic from Velocity to Krisflyer before Covid) with VA paying SQ for the points, the chances of the transfer program resuming would close to zero.

For transfers to resume, Bain would require the transfer program to be in 'their favour' (e.g something in it 'for them') rather than a 'money drain' in favour of SQ, thus to ensure their 'return on investment'.

 

[NoName]

It’s not a money drain at all. VA earn revenue when people earn points through their partners. It’s not like the banks are acquiring millions of VA points for free. Those points are then used up along with VA cash to purchase the KF points. All they have to do is make the revenue earned per VA point greater than the cost of the KF points. What is the difference between members redeeming their points for toaster or KF miles (other than the cost per point)? Both result in money out for VA.

 

[AustraliaPoochie]

You must realize that the new VA/(VA2) will have to run as a tighter ship, or plane.
Just look at now we have to buy on board, no more "free" small sandwich in Y, you have to buy.
Lounges, too now, we need to use QR code to order, meaning they save money on not having a diy buffet, (though we do love the idea of it), or did, it does cost them more.
New routes, will also cost them more to run, whoopee, but still, if their revenue does not go up, or to their liking, they might in the future cut it again.
Look too at the pop up VAi lounge at BNE int terminal at BNE airport, don't think that is coming back, granted for the time being VA2 does not have any international flights, but still, I don't see them paying $$$ for that pop up locale.

 

[AIRwin]

International redemptions to re-open soon:

Velocity announces epic membership extension and Virgin Australia flight rewards

Velocity Frequent Flyer members who fly on eligible Virgin Australia services from 1 October 2021 to 31 March 2022 will receive a significant boost to the Status Credits they earn.

newsroom.virginaustralia.com

 

[HS-TQE]

You must realize that the new VA/(VA2) will have to run as a tighter ship, or plane.
Just look at now we have to buy on board, no more "free" small sandwich in Y, you have to buy.
Lounges, too now, we need to use QR code to order, meaning they save money on not having a diy buffet, (though we do love the idea of it), or did, it does cost them more.
New routes, will also cost them more to run, whoopee, but still, if their revenue does not go up, or to their liking, they might in the future cut it again.
Look too at the pop up VAi lounge at BNE int terminal at BNE airport, don't think that is coming back, granted for the time being VA2 does not have any international flights, but still, I don't see them paying $$$ for that pop up locale.

That VA branded lounge in BNE's international terminal was not VA's to begin with. Was owned by No 1 Lounges but they have sold it to Swissport, iirc. So expect a rebrand of that lounge.