Is it Time to transfer/withdraw points from Velocity?

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Bibendum

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Virgin
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Hi All,

I need some advice from the brains trust on this forum.

I, like many on here, have hundreds of thousands of points sitting with velocity. With the current COVID-19 situation and virgins financial position I’m concerned that if the airline was declare bankruptcy points may disappear..

What’s the likelihood of this happening and should I withdraw my points by purchasing gift cards to get some cash value at what I have..?

am I making a mountain out of a mole hill.. or is there a real threat to my velocity points been wiped out..?
 
Velocity was just bought back recently by VA. If the airline fails, then the velocity points will be useless and worthless. That's why there are so many warnings at the moment to use them up asap.

I have yet to read anything to make me nervous in regards to keeping Velocity points. Last I knew they had 3-8 months cash depending on who's opinion who listen to. The way I read things Virgin have made financial decisions to help make the most of what they have until domestic travel restrictions are lifted.

I may be way off but I have invested in property and the amount of times I have heard interest rates are about to go up or down or property prices are about to burst or boom has got to the point you can usually find an article on both at the same time.
 
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I have yet to read anything to make me nervous in regards to keeping Velocity points. Last I knew they had 3-8 months cash depending on who's opinion who listen to. The way I read things Virgin have made financial decisions to help make the most of what they have until domestic travel restrictions are lifted.

I may be way off but I have invested in property and the amount of times I have heard interest rates are about to go up or down or property prices are about to burst or boom has got to the point you can usually find an article on both at the same time.
Comparing property market to a company is a bit of false sense of security

Property wont go bankrupt, it might drop 20% worst case but that's 20% loss which you should recover one day

If virgin go under youll get zero for your points, plus much higher chance of virgin going to zero vs property dropping 20% in today's climate
 
Comparing property market to a company is a bit of false sense of security

Property wont go bankrupt, it might drop 20% worst case but that's 20% loss which you should recover one day

If virgin go under youll get zero for your points, plus much higher chance of virgin going to zero vs property dropping 20% in today's climate
I am not comparing property to business but comparing the information you get and how you act on it.
 
I am not comparing property to business but comparing the information you get and how you act on it.
Well, it's up to individuals to try to make their decisions then

It pained me to redeem for gift cards but I've had too many hindsight regrets
 
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Never thought I'd see the day. I always hold my shares even if going poorly and I almost treat ff points as such. Cashed out with a bbq, golf balls, jbhifi voucher and a pair of sunnies... would have much rathered a business class flight to SFO as I was planning :(
 
I just received 20k points in my Velocity account from CC bonuses owing (1 of 3). I had already moved all my other points into SQ, so I'll just leave these sit here and see what happens. I'm not interested in juicers 🤷🏻‍♂️
 
Unfortunately the run on VA points is now mainstream media. It’s everywhere. Social media, everything.

Apart from sites like this one. I can't see any reports in the mainstream media in regards to the Velocity points panic? Frankly, that's a good thing, last thing VA needs is more people following the herd. Maybe the mainstream media are being responsible, highly unlikely.

If most people cash in on their points the more chance we'll be left with one major domestic airline and limited reward seats to boot. Hopefully, the federal government can loan VA a very low interest loan to help them in these difficult times. The federal government has already voiced this is a possibility as they appreciate the need for a healthy domestic airline industry once Covid-19 disaster is over.
 
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If most people cash in on their points the more chance we'll be left with one major domestic airline and limited reward seats to boot. Hopefully, the federal government can loan VA a very low interest loan to help them in these difficult times. The federal government has already voiced this is a possibility as they appreciate the need for a healthy domestic airline industry once Covid-19 disaster is over.
Yes because more debt is a great thing for VA, don't you think they have enough debt already?
 
Yes because more debt is a great thing for VA, don't you think they have enough debt already?

It sounds like you would prefer they collapse and in turn make a local tourism rebound even more difficult. It's difficult times, not even VA could foresee this forcast 6 months ago. If this mess goes on for a year then Qantas will be in a very similar situation to what VA is in now, what then no domestic airlines?. We can only hope domestic flying is back in full swing in 3 months.
 
I would love to fly VA anywhere when this is all over. I promise to NOT use points. My dream is to make sure it is a revenue booking, because paying customers is what they would need. I promise to enjoy the view out the window, instead of expectations of the view on my tray table. I promise to thank the cabin crew, because I know they will be just grateful to have their jobs back. Lastly, I will never, ever whinge about standing in a crowded line on the aerobridge again. I miss hugging friends and family more than anything.
 
I wonder if VA would be waiving the restriction on buying points (in the form of looking the other way moreso than by official policy) in these trying times? It would allow those with some cash to spare to buy up points at slightly below standard market rate and would slow down a run on velocity redemptions. Seems like a win win for the airline and those who want to offer some support by topping up their points balance, with the risk sitting squarely on the shoulders of those doing the buying in support of VA.
 
I wonder if VA would be waiving the restriction on buying points (in the form of looking the other way moreso than by official policy) in these trying times? It would allow those with some cash to spare to buy up points at slightly below standard market rate and would slow down a run on velocity redemptions. Seems like a win win for the airline and those who want to offer some support by topping up their points balance, with the risk sitting squarely on the shoulders of those doing the buying in support of VA.
That would probably yield a similar ROI to investing in VA stock at the moment...
 
That would probably yield a similar ROI to investing in VA stock at the moment...

I agree with you entirely, but it would give those who are imploring people to stop making a run on velocity redemptions an avenue to hedge
 
I would love to fly VA anywhere when this is all over. I promise to NOT use points. My dream is to make sure it is a revenue booking, because paying customers is what they would need. I promise to enjoy the view out the window, instead of expectations of the view on my tray table. I promise to thank the cabin crew, because I know they will be just grateful to have their jobs back. Lastly, I will never, ever whinge about standing in a crowded line on the aerobridge again. I miss hugging friends and family more than anything.

When all our wings are unclipped...
 
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