But I guess if I've booked through Air NZ operated by Air NZ expecting to get VFF points and status I now get nothing.Obviously as a VFF I'm not going to fly Air NZ without any access to lounges, points or status credits.

Will customers who booked flights expecting to earn VFF status and points be given the option of cancelling their flights for free?

such a pity. two CEOs have a sandpit fight and customers (and the airlines) lose out. Maybe Singapore Airlines will do a status match deal to take every VFF who flies to New Zealand regularly? 

Considering the Virgin Lounges (ie, on the ground) are typically at around 4Mb/2Mb or less, that's pretty decent 

it depends on whether the airline has updated their selections or not. Currently the Virgin Australia selection for both international and domestic is pretty poor, with very few new movies and a collection of old TV episodes. Qantas has good monthly selections but some routes dont get updated as ...