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Virgin frequent flyers will finally have their points unfrozen TODAY 

por Dane Jacoby (2020-06-01)

1 year agoMembers of Virgin's frequent flyer program will finally be able to use their points after having their points frozen for four weeks.

The company announced customers could use their hard-earned points from Friday. 

However, they can only use the points on discounts for Virgin flights rather than redeeming them to buy gift vouchers, wine or electronics as the company's Rewards Store remains frozen. 

The discounts apply to flights from September 1, 2020. 

And the failed airline will need to find a new buyer before the flights are guaranteed. State and federal governments also need to lift the ban on inter-state travel. 

Virgin Australia has limited the purchase of retail gift cards using points to once a day under the changes made last week

Virgin Australia, which was already struggling with $5billion in debt before coronavrius grounded its planes, was the first in Australia to fold amid the crisis

A Velocity spokeswoman told The Australian they were hopeful domestic travel restrictions and state and territory border lockdowns would be ease by September. 

'We look forward to sharing more offers with our members as we emerge from the COVID-19 crisis and travel resumes more broadly,' she said.

One-way domestic reward flights begin at 7,800 Velocity Points in economy class and 15,500 Velocity Points in business class, plus taxes, fees and charges. 

Virgin Australia has been fighting for survival since the coronavrius pandemic saw its planes grounded.





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The airline was already struggling with $5billion in debt when the travel industry was brought to a crashing halt in March with Australia closing its border.

The company was placed in administration last month with administrators at Deloitte tasked with finding a buyer.  

It is hoped Deloitte will have a better sense of which parties are interested in buying the beleaguered airline, when non-binding indicative offers are made on Friday. 

The Queensland state government could emerge as a serious contender after submitting a plan to rescue Australia's second carrier through either a direct equity stake, a loan, guarantee or another financial tool.

Virgin Australia employees are seen at Sydney Airport, in Sydney, ????? Tuesday, April 21 after the company announced it would go into administration

This has come even as the federal government has refused to bail out Virgin Australia, with Deputy Prime Minister and Transport Minister Michael McCormack saying the solution must be market, not government, led.

The airline has debts of nearly $7 billion and its creditors are expected to be asked to accept a 'haircut', or payment of less than they are owed, to keep the airline operational.

It stood down 8,000 staff last month to try and stay afloat but went into freefall on the back of strict coronavirus travel bans.

The company is 90 per cent foreign owned with Singapore Airlines, Etihad Airways and Chinese conglomerates HNA Group and Hanshan owning 80 per cent between them while Richard Branson's Virgin Group still owns 10 per cent.

More than 15,000 jobs, many based in Queensland, are at risk should a decision be made to carve off assets to service the airline's debts.

The administrators have stated their intention to agree a deal with a buyer by the end of June. 

Read more:

Virgin Australia forced into voluntary administration, as Deloitte says 'there are no plans to make redundancies' - ABC News

Clamp loosens on Virgin Velocity frequent flyer points