What happens to your Virgin points and flights
As administrators report extraordinary investor interest in Virgin Australia and hope to chart a new path for the airline within months, questions remain for thousands of customers and employees left blindsided by the news.
The airline went into voluntary administration on Tuesday and the hunt is now on for new investors to keep it going.
KEY QUESTIONS ANSWERED: SCROLL DOWN FOR DETAILS
"There is an extraordinary number of parties keen to be involved," administrator Vaughan Strawbridge, from Deloitte, told reporters on Tuesday.
"This is a matter of months, not longer than that."
In the meantime, it leaves uncertainty for Velocity frequent flyers and customers who have paid for future bookings.
Staff who still have jobs will continue to receive their wages, and eligible staff will get the government's JobKeeper payments during the administration period.
Virgin Australia CEO Paul Scurrah said the airline had tried but failed to secure the liquidity it needed from shareholders, governments and others. He said seeking new investment streams was the best way to ensure the airline's future.
"This is a tough day for our airline ... (but) we're certainly not collapsing," he said.
"It is our absolute intention to emerge stronger. Australia needs a second airline and we are determined to make sure we are that airline."
He said the coronavirus pandemic had severed the airline's oxygen supply, but new investors would hopefully ensure Australia has a second carrier when things return to normal.
WHAT WILL HAPPEN TO:
VELOCITY FREQUENT FLYER POINTS
- All points retained and expiration period extended
- Points redemption "paused" for at least four weeks
- Still earn points with partners
CREDITS FOR CANCELLED BOOKINGS
- Will continue to apply
- Can be used for new bookings
- Will be part of restructuring negotiations
- Will be honoured while Virgin continues flying
EMPLOYEES AND ENTITLEMENTS
- No planned redundancies.
- Wages will be paid or JobKeeper payments for those stood down
- All entitlements retained
-Maintaining current government-subsidised schedule of 64 weekly return flights
-Plan for some international flights including leisure routes when borders reopen
Originally published as What happens to your Virgin points and flights