Virgin Australia on verge of collapse: What it means for your Velocity points

COVID-19 has hit Australian businesses hard and amongst its victims is major airline Virgin Australia. 

This morning, Virgin Australia put out an ASX announcement that said the company will enter voluntary administration. 

Prior to the spread of the coronavirus, the airline was already facing financial trouble and had been cancelling a bunch of overseas flights. 

The pandemic gave it the final push it needed to tip it over the edge. 

Naturally, with the fate of Virgin Australia looking so grim, questions around the airline’s frequent flyer program, Velocity, have shot to the surface. 

Customers have found themselves asking: what will happen to my Velocity points if Virgin Australia goes under?

Unfortunately, there is no simple answer. 

In the same ASX announcement, Virgin said that “Velocity Frequent Flyer, while owned by the Group, is a separate company and is not in administration,” meaning points are safe, for now. But there has been no indication what it means for the future of the program. 

And without the back-up of an airline, customers won’t be able to redeem their points for flights or upgrades, which, as many frequent flyers know, is often the most value-for-points way to spend them. 

Currently on the Mozo database, there are 65 rewards credit cards that use Velocity points to convert flight rewards, including cards offered by Westpac, ANZ, CommBank and NAB. 

What should I do with my Velocity points? 

Over the past few weeks, some Velocity customers transferred their points to Singapore Airlines (who is in partnership with Velocity), while others redeemed them for store gift cards. 

However, while customers are still able to earn points, the Velocity online store has now paused points redemptions, which will be in place for at least the next four weeks. 

Points will not expire during this period, and Virgin will be extending the expiration period of existing points. 

So, the unfortunate truth is, all Velocity customers have no choice but to sit tight and see what happens as updates are announced. 

Will my Velocity points disappear? 

At this point in time, there is no knowing what the future of Velocity points entails, however having your points vanish is still a possibility if history were to repeat itself. 

Cast your mind back to 2001 when Ansett Australia went into administration, customers’ point balances vanished almost instantly. 

However, when you look at more recent events, like when AirBerlin filed for insolvency back in 2017, Etihad eventually snapped up the airline’s loyalty program TopBonus, which allowed customers to use their points up a few months after AirBerlin went bust.

Some airline experts have predicted that a similar situation may occur in the case of Velocity, or that banks may get their hands on the program instead.  

But there have been no official announcements yet. 

RELATED ARTICLE: Amex's response to COVID-19 about travel bookings, credits and complimentary flights

Need to reconsider your current rewards program? Take a look at what other rewards credits cards are on offer below or jump over to our rewards credit card comparison tool. 

Rewards Credit Cards 2020 - last updated 21 January 2022

Search promoted rewards credit cards below or do a full Mozo database search. Advertiser disclosure
  • Platinum Rewards Credit Card
    Rewards program
    Annual fee
    Bonus points
    Earn rate per $1
    Bendigo Rewards
    $89
    No current offer
    1.5 points uncapped

    Earn 1.5 Bendigo Rewards points for every dollar spent (T&Cs apply). Up to 55 days interest free, comprehensive travel insurance, purchase protection and extended warranty.

    Details
  • Virgin Australia Velocity Flyer Card - Bonus Points Offer
    Rewards program
    Annual fee
    Bonus points
    Earn rate per $1
    Velocity Frequent Flyer
    $129 $64 in the first year
    100,000
    0.66 points up to $1,500/month, then
    0.5 points uncapped

    Earn up to 100,000 bonus points in the first 4 months (conditions apply) and 0% Balance transfer for 18 months

    Details
  • Rewards Signature Card
    Rewards program
    Annual fee
    Bonus points
    Earn rate per $1
    NAB Rewards
    $295
    120,000
    1.25 points uncapped

    Earn 90,000 Bonus Points then an additional 30,000 when you keep your card open for 1 year (Minimum $3,000 spend in first 60 days). Up to 44 days interest free on purchases (see T&Cs).

    Details
  • Apply By 24 Feb 2022
    Altitude Black
    Rewards program
    Annual fee
    Bonus points
    Earn rate per $1
    Altitude Rewards
    $250 $99 in the first year
    180,000
    1.25 points uncapped

    Earn up to 180,000 bonus Altitude Points ($6k min. spend in the first 120 days on eligible purchases). 0% balance transfer for 24 months. 1% BT fee. Discounted Annual Fee of $99 for the first year. New cards only. Offer ends February 24th 2022. T&C's and exclusions apply.

    Details
  • Velocity Platinum Card
    Rewards program
    Annual fee
    Bonus points
    Earn rate per $1
    Velocity Frequent Flyer
    $375
    100,000
    1.25 points uncapped

    Receive 100,000 bonus Velocity Points when you apply online, are approved, and spend $3,000 on your new Card within the first 3 months. Available to new Card Members only. Enjoy a complimentary domestic return flight with Virgin Australia to selected cities, each year after your first card spend.

    Details
  • Qantas Rewards Signature Card
    Rewards program
    Annual fee
    Bonus points
    Earn rate per $1
    Qantas Frequent Flyer
    $395 $295 in the first year
    110,000
    1 point up to $5,000/month, then
    0.5 points up to $20,000/month

    NABs fastest way to earn Qantas Points. 110,000 bonus Qantas Points when you spend $3,000 on everyday purchases within 60 days of account opening and keep the card open for 12 months. Access to 6 complimentary insurances when you make eligible purchases.

    Details

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