Will you still earn/retain Velocity status beyond 2025?

[HS-TQE]

Changing the topic slightly, and to play devil's advocate, I do wonder if the (assumably Bain-mandated) changes could be intended to accommodate not only the pending QR alliance (currently at the ACCC) but also to "exit" most of their primary "International Long Haul Passengers" (who rarely flies VAd) from the VFF books.

Thus the changes are leant towards accommodating their "core passengers" the VA domestic network, as a primary "domestic carrier", whilst focusing their (Long Haul) international primarily on QR going west, followed by SQ in Asia and UA going east going forward.

As some have said in the past across multiple forums including here, VA should "exit (long haul) International," but they didn't expect changes like this to remove most of their Long Haul (international) codeshare (or even non-codeshare Long Haul International/VFF members) passengers from VA. Changing focus on their Domestic network with supplemental income from VARA and their Short Haul International Leisure network, and focusing most of their long haul international codeshare network on three primary carriers (QR, SQ and UA)

 

[odysseus]

How does it benefit them broadly to get rid of customers? Remembering also that if they "rarely fly much" per your scenario, they also don't cost VA much. And they're not in a position of being the premium, dominant carrier where customers will automatically flock to them. While their food is generally slightly above QF, apart from that they don't really have any competitive advantages to QF (smaller network, fewer flights, basic aircraft, inflight services the same or worse, fewer lounges and so on)

 

[levelnine]

How does it benefit them broadly to get rid of customers?

If most customers continue to fly Virgin, but are no longer elites or are paying for their elite benefits through partners (eg Amex is paying for their lounge access), then it is net positive for Virgin.

Whether most customers will continue to fly Virgin is, of course, the big question. But when your competitors are a noticeable step up in price (QF) and a noticeable step down in experience (JQ), it isn't an entirely unreasonable gamble.

 

[MooTime]

If most customers continue to fly Virgin, but are no longer elites or are paying for their elite benefits through partners (eg Amex is paying for their lounge access), then it is net positive for Virgin.

Whether most customers will continue to fly Virgin is, of course, the big question. But when your competitors are a noticeable step up in price (QF) and a noticeable step down in experience (JQ), it isn't an entirely unreasonable gamble.

I'll just add that many don't consider JQ much of a step down from VA.
JQ is a step down in price, yes.

Re lounge access, you / I can gain lounge access through various CCs & QF PC+.

I don't believe it's the wisest of changes to discourage VA status flyers to fly with them, which in my eyes it has done. Then what would I know.

 

[levelnine]

I'll just add that many don't consider JQ much of a step down from VA.

I guess it depends on the definition of 'many'. If the number of people who saw them as indistinguishable were significant, VA would have next to no market share.

There aren't millions of people who are choosing VA over JQ simply because they can game family pooling to attain VA SG. While the lounges are overcrowded, they aren't that full.

Re lounge access, you / I can gain lounge access through various CCs & QF PC+.

Sure, but we're the least profitable customers going around.

My guess is in 24 months time, this graph of market share will look identical to what it currently is, with the exception of Bonza and Rex no longer being present of course.

 

[clifford]

My guess is in 24 months time, this graph of market share will look identical to what it currently is, with the exception of Bonza and Rex no longer being present of course.

Depends to a large extent on what Qantas and Jetstar do. And from my own personal experience, I don't find a lot of difference between row 1 on Jetstar and row 3 on VA, apart from the price. The main downside to JQ for me is the aggressive weighing of cabin baggage.