Important program announcement

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Jul 30, 2010
Dear AFF members,

You will no doubt have already learnt of today’s news about Velocity Frequent Flyer from the media but we felt that it is important to provide our valued members with more information about what this development means for you. We are pleased to provide the AFF community with an advanced preview of an email we will be sending to all Velocity members later today:

Today we celebrated an exciting milestone for Velocity Frequent Flyer. We announced to the market that one ofthe Asia Pacific’s largest investment firms, Affinity Equity Partners, will purchase a 35 per cent minority stake in the Velocity Frequent Flyer program.

It is important to note that there will be no changes to the way your account is managed and operated. And Velocity will continue to be the award-winning loyalty program of Virgin Australia as the airline will maintain majority ownership of Velocity.

This represents a great opportunity to accelerate the development of the program and fast track our vision to becomeone of the world’s leading loyalty programs.

Over the past year we’ve continued to break new ground by introducing innovative member benefits and launching new partnerships:
· We’ve partnered with some of the world’s leading hotels including Starwood Hotel Group, Langham Hotels and One&Only Hayman Island
· We’ve continued to expand the Global eStore, which enables members to earn points when shopping with more than 180 retail brands including therecently added Net-a-Porter, Priceline and Sony
· We became the first loyalty programs to partner with Australia Post andAussie Home Loans giving you brand new ways to earn Points
· We also introduced ‘Space Class’, granting members the opportunity to receive an upgrade to space with a seat on board SpaceShipTwo, the world’sfirst commercial spaceline, in partnership with Virgin Galactic
· And extending opportunities to earn Points to the four-legged kind, we launched Australia’s first frequent flyer program for pets!

We continue to listen to what you value most about the program and today’s announcement will allow us to bring more of what you want sooner. We look forward to bringing you news about more features and benefits in the coming months.

Next year will be Velocity Frequent Flyer’s tenth anniversary and in that time we have grown to bring you a wide range of partners including a world-class network of global airlines, some of the most innovative and unique member benefits ever to be launched inAustralia, and have now grown to become a loyalty program with more than 4.5million members.

I would like to thank you for your support to date in making the program what it is today. You’re the reason we continue to grow and we truly value the relationship.

Kind regards

Neil Thompson
CEO, Velocity Frequent Flyer
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