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Future Flight Credits

antycbr

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Hi all

Received the email about Future Flight credits being restricted to certain fare classes/buckets if/when VA emerge into Bain Airlines.

Any thoughts what this might mean?
  • Capacity controls on peak flights where seats would be sold anyway
  • Only useable off peak for getaway style fares
  • Only usable for premium fares such as Elevate or Freedom?
  • Not upgradable?
  • Any other ideas?
 

Dee#

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No email. But this might be the beginning of the end for me and Virgin.
 

Happy Dude

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@antycbr I think the term within the deal re future flight credits that is causing the most teeth gnashing is "bookings using your credit will be subject to seat availability within the fare class reserved for Future Flight credits". Your list wouldn't be off Vader's table either.
 

oz_mark

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Haven't seen much on the actual mechanics, but they say Economy and Business fares will be available.
 

antycbr

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Haven't seen much on the actual mechanics, but they say Economy and Business fares will be available.
Business would help soak up the credits! Feel sorry for people with international business fares tho, it’s not the same flying on a 737 to Launceston vs a 777 to Los Angeles.
 

SeaWolf

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It's basically all unknown at this stage. I'm certain we'll get details pretty shortly after the second creditors meeting on the 4th of Sept when the deal is finalised.
 

Mattg

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Section 3.4.5.4 of Deloitte's recent report to VA creditors has some details/context about the Future Flight Credits:

Deloitte said:
In the normal course of trading, airlines hold significant money from customers who had paid for but not yet taken their flight. There would also be customers who may be holding credits or awaiting a refund for flights that were not taken or cancelled. Until the customer took the flight or received a refund, any credits or funds held would be recorded as a liability on the airline’s balance sheet, called unearned revenue. This liability, like amounts owed to other types of creditors, is put on hold during the voluntary administration process.

On 13 May 2020, we obtained orders from the Court allowing us to implement a policy (Conditional Credit Policy) whereby we could offer eligible customers the opportunity to use the value of their original pre-administration booking (the amount paid for the original ticket including ancillaries and taxes, but excluding fees) rather than submitting a claim as an unsecured creditor in the voluntary administration.

Under the terms of the Bain DOCA proposal, Bain has agreed to provide customers with a new Future Flight credit for an amount equal to any remaining value their Conditional Credit. Future Flight credits will be available for booking flights up to 31 July 2022 with travel valid until 30 June 2023. Bookings using the credit will be subject to seat availability within the fare class reserved for Future Flight credits on the selected flight and will be subject its own terms and conditions.

For customers with pre-administration bookings for flight scheduled to occur after the Administration period, should your flight be cancelled the terms of the Bain DOCA proposal will entitle you to receive a Future Flight credit to the equivalent value of your current ticket (less any non-refundable fees and taxes).


Based on the information available to us from the books and records of the Group, we estimate the customer liability position is between $550m and $650m. The number of customers and value is changing constantly as the Virgin Group continues to operate, albeit at reduced capacity.

If anyone wants to have a read, the full report is on the Deloitte website - https://www2.deloitte.com/content/d...ency/virgin/au-fa-virgin-creditors-250820.pdf

(I've read it in full, and there's some interesting information buried in there between a lot of dry accounting talk & numbers.)
 

henrus

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It seems amazing with the future flight credits apparently rolling out tomorrow that no details have been released.
 

AIRwin

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Some updates:

Ongoing use of Conditional Credits
If you have been issued with a Conditional Credit, you can continue to use this credit for travel up to 21 October 2020.Please call the our Guest Contact Centre on 13 67 89 to make your booking.
New Future Flight credits
From 22 October 2020, Virgin Australia will provide customers with a new Future Flight credit to the value of travel credit balances for bookings made prior to the commencement of the voluntary administration period, including customers with unused Conditional Credits. Future Flight credits will be available for booking flights up to 31 July 2022 with travel valid until 30 June 2023.
You will be able to use your Future Flight credit for bookings on Virgin Australia operated flights and any future services we operate as travel market recovers and restrictions ease. Bookings using your credit will be subject to seat availability within the fare class reserved for Future Flight credits on your selected flight and will be subject to its own terms and conditions.
More detail on how Future Flight credits can be used will be provided to customers shortly.
System Maintenance
From 13 October 2020 to 21 October 2020, we will be making some changes to our system to make it easier for you to use your new Future Flight Credit. During this time, you will not be able to use your Conditional Credit or Travel Bank to make a booking. If you need to make a booking using your Conditional Credit for travel on or prior to 21 October 2020, we strongly encourage you to contact our Guest Contact Centre to book prior to 13 October 2020
 

henrus

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Some updates:

So they've basically pushed it back a month. It's impossible to get through on the phone this morning but at least the good news is it sounds as if it'll be possible to use these online instead of calling.
 

SydneySwan

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I wonder if these rules will apply to Virgin flight credits from a booking through FC. Previous correspondence suggested you had to go through FC who would then contact VA on your behalf which of course is a logistics nightmare.
 

serfty

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I have future credits based on I class business fares.

I am still wondering if ill be able to use them on such fares.

Of course this assumes business class will be as we knew it.
 
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ozstamps

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Just used up all credits from past cancelled and past resked flights - they allowed them even on cheapest fares thank goodness.

Long as flights are taken before any more quarantine bubble they are gone forever, thank goodness.
 

Bagpuss

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I noticed this week, likely in preparation for the change to the new Future Flight credit, that my conditional credits had been added to my travel bank.
Purchased intrastate I class fares (business saver) which are fully refundable (though would be back to Future Flight credit), so I have emptied my travel bank (including conditional credits).
Promo code MPX56 works for 10% off all fares (I’ve put the code in the promo code forum too.)
 

trippin_the_rift

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Do you trust an airline that continues to change the goalposts while they hold your money?

How long until Velocity is gutted? [Who is running it?]

Get out while you can, folks!
 

Cubiscus

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I'm very confused, still awaiting my email for the conditional credit but I've had $129 dropped into my TravelBank randomly too (out of $3.5k credit).

If they're restricting what you can spend this on that's another kick in the teeth.
 

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