Virgin Australia and Qatar Announce Strategic Partnership

[FlyingKangaroo]

I’ll honestly be surprised if this deal passes ACCC scrutiny. Surely having a major airline like Qantas gobble up the competition is a no-no?

Qantas isn't gobbling up anyone, and if you meant Qatar, Qatar and VA are hardly competitors?

 

[Must...Fly!]

I've been pondering the Avios question for most of the day. I don't think it's going to happen. It's a world away from the rest of the Avios infrastructure, and VFF and Velocity points as a whole are a very well known local product. There is significant value in these staying in the market as their own currency. There is little in the way of reasons to adopt Avios for any party, imo.

 

[twinaisle]

Velocity will most likely remain as is and unchanged. It's a very profitable operation.

 

[RooFlyer]

I still doubt Avios will be an option, but perhaps VA to QR transfer with a penalty rate (like VA to SQ now) making it possible but not necessarily good value.

I think that would be a great arrangement and perhaps the easiest to implement, if they did want the 2 FF schemes to interact.

Not necessarily good value in the widest sense, but can be good value if you are a bit short in one currency and have surplus in the other. et voila - an award is now bookable. Have done this several times for SQ - got tons of Velocity points, no international use for them (for me), so whack 'em over to SQ and I'm away. The loss on transfer is soon made up.

 

[justinbrett]

I think that would be a great arrangement and perhaps the easiest to implement, if they did want the 2 FF schemes to interact.

Not necessarily good value in the widest sense, but can be good value if you are a bit short in one currency and have surplus in the other. et voila - an award is now bookable. Have done this several times for SQ - got tons of Velocity points, no international use for them (for me), so whack 'em over to SQ and I'm away. The loss on transfer is soon made up.

The trouble unlike the other QR investments, VA isn’t in oneworld and has many *A partners. So there’s competing interests there.

Getting too close to QR/Avios means giving business to the direct competitors of many of VA partners (AA/AS instead of UA, BA instead of VS, JL instead of NH, CX/MH instead of SQ, and even 4Z instead of SA).

It’s a very awkward situation. If VA points can be redeemed for QR metal but not other oneworld, that seems like it ticks all the boxes. What’s the motivation for anything more?

 

[jase05]

It’s a very awkward situation. If VA points can be redeemed for QR metal but not other oneworld, that seems like it ticks all the boxes. What’s the motivation for anything more?

Agree on that and I don’t think it would work as things currently stand but who knows what the future holds. I think things will look very different in the future

 

[PERLHR]

The trouble unlike the other QR investments, VA isn’t in oneworld and has many *A partners. So there’s competing interests there.

Getting too close to QR/Avios means giving business to the direct competitors of many of VA partners (AA/AS instead of UA, BA instead of VS, JL instead of NH, CX/MH instead of SQ, and even 4Z instead of SA).

It’s a very awkward situation. If VA points can be redeemed for QR metal but not other oneworld, that seems like it ticks all the boxes. What’s the motivation for anything more?

I suppose one needs to analyse if FF points and their use are actually "supporting the competition". Maybe it's actually the opposite...taking away a revenue paid seat opportunity? I'm not even sure if airlines within their books consider FF use? I guess they do but what value they put against it I'm not sure. The drawback could be I guess that one likes the service of say One World operator over previously used Star Alliance and then decides to pay for using One World in future. For me as example, I convert VA to SQ and fly SQ however as I am really one world junky, I don't ever buy SQ without using VA points.

 

[justinbrett]

I suppose one needs to analyse if FF points and their use are actually "supporting the competition". Maybe it's actually the opposite...taking away a revenue paid seat opportunity? I'm not even sure if airlines within their books consider FF use? I guess they do but what value they put against it I'm not sure. The drawback could be I guess that one likes the service of say One World operator over previously used Star Alliance and then decides to pay for using One World in future. For me as example, I convert VA to SQ and fly SQ however as I am really one world junky, I don't ever buy SQ without using VA points.

No, that’s just plain wrong.

If QR Avios are used on another oneworld airline, money changes hands. The other airlines benefit (they’re not giving away seats for charity). If it’s two ways then perhaps it cancels out but there’s a monetary value to it.

SQ has been different as they align with many of VA’s other partners (especially now it’s UA and not DL).