ACCC pressures Virgin to lift travel credit expiry [update - Virgin forced to extend]

[Must...Fly!]

If those people haven't used the $300m by now it's probably fair to say the vast majority just won't ever be used. Pointless to extend the liability on the books.

 

[jakeseven7]

If those people haven't used the $300m by now it's probably fair to say the vast majority just won't ever be used. Pointless to extend the liability on the books.

Personally I agree - and I feel exactly the same for all the other credits Virgin has on the books (the ones they’ve been forced to extend) and Qantas for that matter as well.

 

[RooFlyer]

If those people haven't used the $300m by now it's probably fair to say the vast majority just won't ever be used. Pointless to extend the liability on the books.

As I've suggested for Qantas (and still do), why not send an e-mail (which they have) to the credit pax, saying you need to use your credit by XX, else we will send a refund back to your CC (if used). Send out another one, and then a third. Then do it, or attempt it. May need some approvals to do it - OK, so get it. Trying to get customers' money back to customers should have great hurdles.

At the end of the day when they have genuinely exhausted ALL avenues of funds repatriations, apply to the court to have the balance put into some sort of charitable trust and be used for good. These funds must not go to the airlines' bottom line, like Qantas was licking it's lips at a $400 million (oops, $600 million-odd) windfall.

 

[Must...Fly!]

The above is not a bad idea, frankly given the support through COVID it wouldn't be entirely inappropriate for said funds to go to the feds.

 

[pauly7]

Personally I agree - and I feel exactly the same for all the other credits Virgin has on the books (the ones they’ve been forced to extend) and Qantas for that matter as well.

Yes but proportionally $300m for Virgin/Bain is a lot of money is my point.

The above is not a bad idea, frankly given the support through COVID it wouldn't be entirely inappropriate for said funds to go to the feds.

I don’t think the Feds are going to shakedown Virgin or any other company for cash. Politically distasteful

 

[Must...Fly!]

I don’t think the Feds are going to shakedown Virgin or any other company for cash. Politically distasteful

Of course not, it will not happen. Just speaking in the abstract really.

 

[Bagpuss]

I don’t disagree with you but I think they’ve run the ruler over it in a meeting dominated by Bain bean counters and said nope no way and we can weather the brand damage for $300 million thanks very much!

What gets missed is travel agents. They seem to be let off the hook.
A work trip was cancelled during covid and was a standard credit. They travel agent kept saying it had expired and I kept hassling them, the internal travel team just believed what the agent was saying.
After a year of on and off attempts by me they finally agreed it was valid for use. They confirmed the value which was correct. However, when it was used they proclaimed Virgin Australia had charges of $150 for a change date and $150 fee for a routing change. Obviously, there were no such fees and they keep saying it was Virgin fees and not there’s. I knew they were just trying to get money back through the system and the internal travel team again just believed them. In the end I accepted the fees cause otherwise the full value would have gone to waste.

Pre covid if the consumer was told something was non refundable we accepted it. Post covid, how our attitudes have changed.

 

[jakeseven7]

What gets missed is travel agents. They seem to be let off the hook.

That’s interesting… Is there any numbers out there on what the TA’s are holding? Would it be more than VA2’s 300 million?

 

[Princess Fiona]

Awful interview with a blind pensioner tonight on ABC 730

She had paid $15K for return J tickets to LAX for herself and her carer to visit her family.
She wants a refund so that she can rebook and go on the visit.
$270 million expires on Dec 31st.

ABC 730 Report

 

[Must...Fly!]

Awful interview with a blind pensioner tonight on ABC 730

She had paid $15K for return J tickets to LAX for herself and her carer to visit her family.
She wants a refund so that she can rebook and go on the visit.
$270 million expires on Dec 31st.

ABC 730 Report

It's very sad for her. But I understand the Virgin side and I don't think exceptions should really be made in this particular scenario, unfortunately.

 

[justinbrett]

Why can't VA book them on their UA codeshare?

 

[pauly7]

Why can't VA book them on their UA codeshare?

Because they won’t make much money…

 

[Princess Fiona]

Why can't VA book them on their UA codeshare?

IDK the interview details her being offered to rebook domestic flights or to NZ etc.
VA declined to be part of it.

 

[SYD]

Here’s the article. If this had been QF, it would have been reposted in multiple threads but VA is sitting on $15k for this particular person since 2019 and not refunding nor rebooking as originally intended….

Karen is blind and wants to visit her family, but Virgin Australia won't refund her cancelled flights

Virgin Australia is sitting on hundreds of millions of dollars in unused COVID-19 flight credits, with customers who booked flights for routes the airline no longer operates being refused refunds.

www.abc.net.au

”The company's hardline approach has been slammed by consumer advocates who are calling on Virgin Australia to properly consider the individual circumstances of customers.”

 

[Must...Fly!]

But no one says it's lucky they get anything at all.

Regardless let's say they extend to 2025. Then that time rolls around and there's still $200m in unused credits.

May as well just take the reputational hit now. It won't get any better. And clear the books, continue getting ready for the inevitable IPO. That will lead to some benefits for passengers too.

 

[justinbrett]

I'd say last night's story has already cost VA more than 15K in forward bookings.

Smart companies pay up once the media starts sniffing. A very short sighted move.

 

[RooFlyer]

Smart companies pay up once the media starts sniffing. A very short sighted move.

I'd say a smart company pays up before the media starts sniffing - ie just pay up. A pox on both VA and QF in this regard.

 

[Must...Fly!]

You can't compare the two.

Honestly this reaction is all a bit OTT, IMO. Maybe I lack compassion.

 

[Princess Fiona]

You can't compare the two.

Honestly this reaction is all a bit OTT, IMO. Maybe I lack compassion.

I don’t believe I’ve seen any OTT reaction.
Fairly measured report by the ABC on what for this individual is a truly sad outcome of the VA bankruptcy.
I’m sure there will be others but there’s not a lot of reporting on this.
It’s flown under the radar for a long time.

 

[SYD]

VA no longer fly international long haul and by the looks aren’t likely to anytime soon. So there’s really no excuse for not refunding money they can’t or won’t offer a service for.