Virgin Australia has entered voluntary administration and Deloitte has been appointed as the administrators.
The Board of Directors made the decision on 20 April to secure the future of Virgin Australia Group and to emerge on the other side of the COVID-19 crisis. The administrators intend to restructure and re-finance the business, to bring it out of administration as soon as possible.
Important traveller update for Virgin Australia flyers is that the airline will continue to operate their reduced schedule for international and domestic flights. These flights are to help transport essential workers, maintain important freight corridors and return Australians home.
Another note for travellers is that Velocity is not part of the voluntary administration. The frequent flyer programme is managed independently. According to Vaughan Strawbridge from Deloitte, there is no intention for Virgin Australia Group to sell Velocity. However, Velocity has since announced that all redemptions on flights and online shopping will be temporarily paused. The suspension will apply for four weeks and may be extended if necessary.
Velocity has advised:
- – Your Points will remain in your account.
- – Existing Points will not expire through this period. The expiration period for your existing Points will be extended by the timeframe of the pause.
- – You can continue to earn Points with Velocity partners, although you won’t be able to redeem them during the pause.
We will share more information as soon as it’s received from Deloitte, Virgin Australia or Velocity, but please don’t hesitate to contact our CBT team if you need assistance.