If VA gets taken over, what might happen to our Velocity points, status etc?

6 replies

bmc

Virgin Australia - Velocity Rewards

Member since 22 Aug 2013

Total posts 112

If VA gets taken over, what might happen to our Velocity points, status etc? Are there any precedents? Would points/SC get rolled over into Star Alliance given that's what SQ and NZ are part of? Thought?

AlG

Member since 04 Nov 2010

Total posts 155

With respect bmc I don't know why people worry about with things like this. In the first instance nobody knows what would happen, in the second instance this is not likely to happen, Air New Zealand's CEO has come out this week and said they are NOT going to launch a priate take-over of Virgin Australia. Surely people have better things to occupy their times with!

watson374

Qantas - Qantas Frequent Flyer

Member since 17 Aug 2012

Total posts 1,285

With respect, Al, you sound like the Foreign Office.

1. Nothing is going to happen.

2. Something might happen, but we should do nothing about it.

3. Something is happening, but there's nothing we can do.

4. There might have been something we could have done, but it's too late now.

In all seriousness, however, I agree that Velocity is fairly safe for the time being. Barring an Ansett-style collapse, the program should survive.

bmc

Virgin Australia - Velocity Rewards

Member since 22 Aug 2013

Total posts 112

With respect Al. I'm sure there are precedents. Take the current AA + US merger. Secondly, I may start allocating points and SC to NZ or SQ now whilst I have 2 years worth of Velocity Platinum status to enjoy with VA...

StuParr

Virgin Australia - Velocity Rewards

Member since 01 Mar 2012

Total posts 195

BMC, the ACCC will not allow it, and then there is the Foreign Investment Reveiw Board to get it by. Given that VA's purchase of Tiger was heavily vetted by the ACCC and only approved because it was that or Tiger withdrawing from the market, I feel that the only way that you will see VA exit will be via bankruptcy.

Phalanger

Member since 31 Aug 2013

Total posts 14

Considering the only routes they compete on they already have approved co-share agreements it would not be an issue competitive market issue meaning they would be able to pass the ACCC requirements.  However it would be more of an issue with the FIRB, but I would not say impossible.  However this would require a lot of risk by one of the parties and these purchases are more to minimise risks giving more stable results.

Merc25

Qantas - Qantas Frequent Flyer

Member since 29 Jun 2013

Total posts 317

Airline FF progams are a profit making arm and as such are never altered in a take over. If other airlines are buying in ,it means VA is appears to be good for code sharing and airl craft purchases etc.see it as a positive .the only people to worry if there was a take over bid would be the management at VA! And I don't think it will happen anyway 

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