So apparently Virgin Australia went into voluntary administration this morning

Discussion in 'Current Affairs' started by Bullion_ron, Apr 21, 2020.

  1. Bullion_ron

    Bullion_ron Well-Known Member Silver Stacker

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    I have over 350k frequent flyer points, does anyone know what's going on with them?

    I know that the points are held elsewhere, but that's about it really...

    Halp?
     
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  2. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    Points have been frozen until the mess is sorted out, so only option left is to cross fingers and hope.
    Who knows what the value and partnerships will look like after this "restructure".
     
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  3. Bullion_ron

    Bullion_ron Well-Known Member Silver Stacker

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    Sigh
     
  4. Ag bullet

    Ag bullet Well-Known Member

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    any flights paid for or points are likely gone
     
  5. Jason1

    Jason1 Well-Known Member

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    administrators said today F flyer points will be honored after 4 weeks.
     
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  6. Bullion_ron

    Bullion_ron Well-Known Member Silver Stacker

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    Like cashing out, or unspecified?
     
  7. leo25

    leo25 Well-Known Member Silver Stacker

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    Got this email today, doesn't sound great. Lucky i didn't have a massive buildup of points.

     
  8. jnkmbx

    jnkmbx Well-Known Member

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  9. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    I bet each way.
    However, it was becoming apparent a few weeks ago that the writing was on the wall for Virgin, so I transferred all my VP's to Kris flyer. This was always my intention, as SA have a better product, but it also means I have put an involuntary 3-year expiration date on the points now.
     
  10. Jason1

    Jason1 Well-Known Member

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    Not entirely sure sorry, I caught the press conference today with Virgin and the administators, the press conference overlapped slightly with the treasurers press conference on the same issue which I was more interested in, they switched over to the Virgin press conference, But the rewards and F-flyer wasnt a part of the press conference i had much interest in so I didnt pay full attention to those details.
    But they had a question from the press gallery about rewards programs and I caught the part where the administrator said those will be honored but would be delayed for a few weeks while they sort out the restructure side. I didnt pay any further attention after that part sorry.
     
    Last edited: Apr 21, 2020
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  11. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    This may shed some light....and maybe some comfort. Fingers crossed. I'm a member of Virgin's FF programme but haven't accrued points with them in years but do remember the pain of losing my Ansett FF points back in the day.

    https://www.businessinsider.com.au/...y-points-protected-trust-cash-collapse-2020-4

    Virgin Australia will pay out Velocity points in cash if it collapses,
    with money from a secret trust

    [​IMG]
    Jack Derwin
    Apr 22, 2020
    [​IMG]
    Virgin Velocity members won’t lose the value of their points if the airline never flies again. (Steve Christo)
    • Virgin Australia’s Velocity points will be paid out to its members if it collapses, the embattled airline has revealed to Business Insider Australia.
    • No matter if the airline is sold or liquidated, a secret trust is in place to protect the program against the worst case scenario.
    • While remaining tight-lipped over how its structured, Business Insider Australia understands special cash reserves have been designated and protected to ensure members aren’t left with nothing.
    • Visit Business Insider Australia’s homepage for more stories.
    While Ansett may have left its frequent flyers high and dry, Virgin insists it’s not going to make the same mistake.

    On Wednesday, just a day after entering voluntary administration, the beleaguered airline told Business Insider Australia that it had gone to some lengths to protect its 10 million Velocity members if it does not survive.

    “Velocity is set up in a way that safeguards member value by having a trustee that looks after the interests of members,” Virgin said in a statement.

    The reassurance that “members will never just lose points” was issued as a Virgin spokesperson confirmed the company had received “quite a few questions” about the security of Velocity points from nervous members.

    As administrators from Deloitte try to overhaul the business into something more sustainable, a trust essentially protects the Velocity program from collapse even if the entire business should fail to fly again.

    A spokesperson confirmed the trust would protect those points, currently frozen, in every scenario that Virgin now faces, including collapse or sale to another business.

    Business Insider Australia also understands the trust contains special cash reserves that have been put aside to pay out members in the instance the loyalty program cannot continue in some other form. With points typically priced in terms of flights or consumer goods, it’s unclear how monetary value will be assigned or whether the total cash lot will be simply divided by the number of points and distributed accordingly.

    Virgin wouldn’t be drawn on how much cash had been put aside, how much members could receive, or how those points would be valued if the airline did fail. In fact, until recent weeks, in which Virgin has faced the real prospect of liquidation, Business Insider Australia understands many within the company weren’t even aware such a cash reserve existed

    Given the sensitivities that surround trusts, it’s unsurprising the company remains tight-lipped on exactly how it has protected the loyalty program. A collapse would leave a long line of hungry creditors, some of whom would likely never recoup their money.

    They will be less than impressed to learn that in case Virgin does go to the wall, a trust would stop them from getting their hands on the company’s remaining cash, instead going to the former customers of the airline.
     
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  12. Bullion_ron

    Bullion_ron Well-Known Member Silver Stacker

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    Thank you
     
  13. Ag bullet

    Ag bullet Well-Known Member

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    secret trust? isn't that reserved for board members when a company becomes insolvent? they sail off into the sunset
     
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  14. jnkmbx

    jnkmbx Well-Known Member

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    Except it's not the company's cash anymore. =_=

    I suppose people who paid for Virgin Australia Lifetime Lounge memberships will be worried.
    These volatile times should serve to remind people of the risks associated with chasing lifetime status.


    won't touch krisflyer ever lah :p
     
  15. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    Why not? Much better product than the "other guy" you bet on. ;)
     
  16. jnkmbx

    jnkmbx Well-Known Member

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    I like Singapore Airlines and have enjoyed their Singapore Slings and service, but I choose Qantas (the "other guy") over them in most cases because it's possible to hoard Qantas points over many years; and there are many avenues available to do this.
    Rather than transfer to KrisFlyer, I would have transferred points to one of the hotel loyalty programs if it were an option.
     
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  17. jultorsk

    jultorsk Well-Known Member Silver Stacker

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    https://www.theaustralian.com.au/bu...s/news-story/0523a6b49a0fa547d71b9269a4cdffb5

    Perth Airport has taken possession of a number of Virgin Australia’s aircraft over the airline’s failure to pay its bills. The airline went into voluntary administration on Tuesday, after being unable to secure the financial assistance needed to keep it afloat.

    On Friday administrators’ Deloitte revealed Virgin Australia owed $6.8bn to creditors, including $71.2m to landlords such as airports.

    The aircraft locked by Perth Airport, are not currently being used by Virgin Australia to operate government-subsidised domestic flights or charter flights within Western Australia. A spokeswoman for Perth Airport said they were working cooperatively with Virgin’s administrators to try to help the carrier come through the coronavirus crisis. “Maintaining a two-airline system in Australia post-COVID-19 is absolutely essential for the aviation and tourism sectors, and the broader economy,” said the spokeswoman.

    “Virgin has significant outstanding invoices from Perth Airport for airfield and terminal use charges – money the airline has already collected from its passengers and the FIFO sector. “While Perth Airport is working with the Virgin administrators, it also needs to protect its own interests.”

    The spokeswoman said they had taken liens over a number of Virgin aircraft, which she described as a “standard practice in these situations”. “The aircraft affected are not being used for current FIFO or interstate operations and have been parked at Perth Airport for some time now. There will be zero impact on Western Australia’s resources sector,” she said. “At this point in time, we continue to facilitate Virgin’s FIFO flights through Terminal 2 while we try to secure an agreement with the administrators. Virgin continue to fly around 180 flights a week through Terminal 2.”

    No other airports have taken possession of Virgin Australia aircraft. The airline has grounded most of its fleet, as it navigates the coronavirus crisis with the help of administrators.
     
  18. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    I remember that Qantas on the day Ansett went into VA, sent a ground crew over to a specific Ansett plane at a gate, and towed it away to a Qantas hanger as for some strange reason, Qantas had actually leased the plane to Ansett and Qantas wanted to get in first before the VA did.
     
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  19. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    We used our points with Amex to help pay off our credit card debt. We thought that would be the most sensible use for our points.
     
  20. Roswell Crash Survivor

    Roswell Crash Survivor Well-Known Member Silver Stacker

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    This entire 'Voluntary Administration' charade is about brinksmanship with creditors.

    Virgin Australia's debt schedule will definitely change and their ownership structure may also shift drastically, but I don't see Virgin Australia going the way of Ansett just yet.
     

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