Update - 21/08/2020
We are aware many customers are asking for updates on their Virgin Australia (VA) credits based on media reports and updates on the Virgin Australia website.
At this point, we don't have enough information at this stage VA have released a trade release and updated their website (https://travel.virginaustralia.com/au/coronavirus-update/change-cancel) to indicate they will convert customer credits (including conditional credits) to Future Flight credits. The website outlines that these credits need to be used by 31 July 22 for travel to 30 June 2023. This is positive news but, as yet we do not have a full policy to support this.
While Bain Capital has been appointed as the preferred new owner of Virgin Australia this process is not complete and isn't due to be completed until approximately 23 September 2020. This is also the date that VA has stated they will convert customers credits to Future Flight credits.
We are working with VA to get this information as soon as possible but due to the administration process, we may not have more detail for a number of weeks.
Virgin Australia’s domestic and international business has been hit hard during the coronavirus (COVID19) pandemic.
On 25 March 2020, VA halted 90% of its flights and stood down 80% of its workforce, maintaining just 17 destinations to transport essential services, critical freight and logistics.Â
On 16 April 2020, VA responded to a request from the Australian Government to resume flying an underwritten, minimal domestic schedule to transport passengers and keep important freight corridors open during the pandemic. 64 return services each week were started.
Virgin Australia had been seeking a temporary loan of $1.4 bn from the Australian Government to keep it’s business operational, however this request has been repeatedly rejected despite concerns domestic airfares would spike if Qantas was left to dominate the market (market monopoly).
The ASX placed an involuntary halt on Virgin’s trading on 16 April 2020.
Virgin Australia board members held a crisis meeting on Monday afternoon on 20 April. Following this meeting an ASX announcement was lodged Tuesday morning confirming Deloitte has been appointed.
The Virgin Australia Group has announced that it appointed the voluntary administrators to recapitalise the business and help ensure it emerges in a stronger financial position on the other side of the COVID-19 crisis. The intention of the administrators is to undertake a process to restructure and re-finance the business and bring it out of administration as soon as possible.Â
What does Virgin Australia going into Voluntary Administration mean?
Voluntary Administration is a process whereby a company (Virgin Australia) is placed in the hands of an independent business known as a Voluntary Administrator (Deloitte) whose role is to investigate the company’s affairs and determine the best path forward for the company and its creditors. It offers the company an opportunity to restructure its affairs and there are a range of possible outcomes, for example entering into a Deed of Company Arrangement, Liquidation or be returned to the directors.
The Virgin Australia Group has announced that it appointed the voluntary administrators to recapitalise the business and help ensure it emerges in a stronger financial position on the other side of the COVID-19 crisis. The intention of the administrators is to undertake a process to restructure and re-finance the business and bring it out of administration as soon as possible.
Velocity Frequent Flyer, while owned by the Group, is a separate company and is not in administration.
The company has confirmed it is still operating all scheduled flights which are helping to transport essential workers, maintain important freight corridors, and return Australians home.
What happens to my Virgin Australia Credit? According to a message on Virgin Australia’s Facebook page, your travel credits remain valid.
Will Travel Partners/Luxury Travel Planner cover my booking / provide me with a credit?
Any future tickets and credit is held with Virgin Australia, not with Travel Partners.
Unfortunately due to the impact of the Coronavirus on Travel Partners, we are not in the position to cover the costs of our customers' bookings. However, Virgin Australia has communicated that ticket credits remain valid.
What happens if I have already submitted a refund?
If the refund has been processed by the airline and money is received by Travel Partners from the airline, then we will refund the money back to you.
For outstanding refunds, this is dependent on the Administrator. Generally, refunds can take up to 12 weeks to be processed and customer payouts will not happen until funds are received from our supplier.
If I can't get a refund, can I get my taxes back?
This is dependent on the Administrator.
Will travel insurance cover anything?
As Virgin Australia is currently in Voluntary Administration, insurance does not cover this.
At Luxury Travel Planner we continue to Monitor the situation and will keep our clients updated with information about the ongoing issues with Virgin Australia.
Comments