Virgin Australia's partnership with Air New Zealand has hit another rocky patch, this time affecting the earn-and-burn points proposition on AirNZ flights.
From 1 November 2017, Virgin travellers will only be able to earn Velocity frequent flyer points and status credits on Air New Zealand's trans-Tasman and domestic flights.
Travel further afield with the Kiwi carrier – such as onwards to Los Angeles, Houston or South America, routes which AirNZ has been eagerly spruiking to Australians – and you'll earn a grand total of zero Velocity points and status credits.
Likewise, your Velocity status won't count for anything on those long-distance Air New Zealand routes – so you can forget about that Gold or Platinum card entitling you to business class check-in, extra baggage and of course lounge access.
The same applies for members of Air New Zealand's Airpoints scheme when it comes to earn Airpoints Dollars and status credits on Virgin Australia's international flights – earnings will be clipped back to Virgin's domestic and trans-Tasman services.
It's a bit of a backflip for Air New Zealand CEO Chris Luxon, who only last year described the alliance as "business as usual" and said "we’re really committed to making that work even further."
Those comments came in the wake of a boardroom bust-up which resulted in Air New Zealand selling its 25.9% stake in Virgin Australia after Luxon reportedly called for (and was denied) the resignation of Virgin CEO John Borghetti.
Air New Zealand was one of Virgin's first partners as the airlines teamed up to take on Qantas for the lucrative trans-Tasman market.