Login Now to remove this and all advertisements (GOLD and SILVER members)
Not a member? Register Now for free

Virgin Australia enter Voluntary Administration - Impact on Amex cards?

Doctore1003

Active Member
Joined
Jul 27, 2015
Messages
580
Points
295
Virgin Australia's [possible] collapse will have a big impact on Amex given Virgin is a partner for most Amex cards. If the airline ceases to operate, is transformed into an LCC, loses its international partners or emerges with a small domestic network, the appeal and value of many Amex cards will fall.
I wonder how Amex would respond?
I'd love to see the Membership Rewards program add Qantas as a transfer partner for all MR tiers, so people can use their points to fly domestically.
I'd also love to see the Platinum Card provide Qantas Club membership to replace the current Virgin lounge membership.
The Velocity Amex cards could disappear entirely.
Will be interesting to see what happens!
 
Last edited by a moderator:

samh004

Enthusiast
Joined
Apr 1, 2009
Messages
19,246
Solutions
13
Points
1,570
Qantas
Platinum
Virgin
Red
You raise some interesting points.
I'd love to see the Membership Rewards program add Qantas as a transfer partner for all MR tiers, so people can use their points to fly domestically.
I would think that if Qantas transfers were expanded to the Ascent and Gateway programs, they would be at a reduced transfer rate to differentiate the Platinum Charge level... otherwise I think that product would lose a significant amount of value.
I'd also love to see the Platinum Card provide Qantas Club membership to replace the current Virgin lounge membership.
Technically the Platinum Charge doesn't offer a VA The Lounge membership (and associated benefits), but rather it offers access if flying VA and showing the card. I guess this could happen with QF too, but unlikely for them to give fully fledged Qantas Club I reckon, as it would be taking a benefit away from Centurion. It would also offer access to partner lounges, such as when flying AA, so Qantas Club membership must be worth more than Qantas Club access when flying QF. One is essentially a lounge pass, the other opens many more doors.
 

jakeseven7

Established Member
Joined
Sep 9, 2005
Messages
4,868
Solutions
2
Points
845
There are reports in the other thread of Amex providing free of charge a switch to equivalent direct QF cards for people who held direct VA cards who need to stop them.
 

ff-jr

Intern
Joined
May 2, 2009
Messages
98
Points
130
My interest in earning points for QF is null and I will only fly them out of bare bone necessity (frankly, I'd rather car or rail options on most routes). To that, I'll be looking at alternative card options so hopefully Amex come to party.
 

samh004

Enthusiast
Joined
Apr 1, 2009
Messages
19,246
Solutions
13
Points
1,570
Qantas
Platinum
Virgin
Red
My interest in earning points for QF is null and I will only fly them out of bare bone necessity (frankly, I'd rather car or rail options on most routes). To that, I'll be looking at alternative card options so hopefully Amex come to party.
Perhaps something in the Ascent and Gateway programs.
 

glasszon

Active Member
Joined
Jul 30, 2015
Messages
594
Solutions
1
Points
295
Technically the Platinum Charge doesn't offer a VA The Lounge membership (and associated benefits), but rather it offers access if flying VA and showing the card. I guess this could happen with QF too, but unlikely for them to give fully fledged Qantas Club I reckon, as it would be taking a benefit away from Centurion. It would also offer access to partner lounges, such as when flying AA, so Qantas Club membership must be worth more than Qantas Club access when flying QF. One is essentially a lounge pass, the other opens many more doors.

Perhaps a QF Club lite version that's only valid for domestic QF lounges and international QF lounges in Australia? I agree QF Club will cost more than the current VA lounge access arrangement, but I am sure QF would be keen for a bespoke agreement with Amex given the $$$ involved.
 

oz_mark

Enthusiast
Joined
Jun 30, 2002
Messages
18,783
Solutions
4
Points
1,425
I'd love to see the Membership Rewards program add Qantas as a transfer partner for all MR tiers, so people can use their points to fly domestically.

I don't think Qantas would agree to this

I'd also love to see the Platinum Card provide Qantas Club membership to replace the current Virgin lounge membership.

I once asked Amex about this, and was told the negotiation went:

Amex: We'd like to offer our Platinum Cardholders access to your lounges
Qantas: No
 

hossein_au

Established Member
Joined
May 2, 2013
Messages
1,557
Solutions
1
Points
395
Can you imagine if Qantas allowed a transfer of velocity points to qantas or even status credits? Loyalty for life!

Why would they? Why would they accept something of absolute *zero* value (to them anyway) and give away something of tangible value? People have no choice but to use QF. That is the whole point of arguing for VA's rescue: we now have an actual monopoly.
 
Last edited:

Supersonic Swinger

Active Member
Joined
Aug 15, 2006
Messages
752
Solutions
1
Points
310
I'd love to see the Membership Rewards program add Qantas as a transfer partner for all MR tiers, so people can use their points to fly domestically.

I'd be shocked if that happens. Qantas stopped the ability for any credit cards to transfer points across with the 2009 round of "enhancements". Other than the Amex Platinum and I think one or two other business cards, you can only direct sweep (for which sometimes you have to pay an extra "Qantas Rewards Fee" e.g. Citi).

Why? QFF significantly enhances the value of the data they have on members because direct sweep gives you a better sense of the wealth and spending patterns of individual members. QFF don't want to give up that gold mine.
 

BAM1748

Senior Member
Joined
Jul 22, 2008
Messages
6,036
Points
980
Why would they? Why would they accept something of absolute *zero* value (to them anyway) and give away something of tangible value? People have no choice but to use QF. That is the whole point of arguing for VA's rescue: we now have an actual monopoly.

If REX come through they could be the next big thing, their route map is more extensive than you think.

 

samh004

Enthusiast
Joined
Apr 1, 2009
Messages
19,246
Solutions
13
Points
1,570
Qantas
Platinum
Virgin
Red
If REX come through they could be the next big thing, their route map is more extensive than you think.

A lot of their QLD routes are state government supported, and were previously operated by SkyTrans before the Newman government helped kill that airline by taking the contract off them. So I guess what I'm trying to say there is that those routes could be awarded to anyone in the future. I think they would need to fly some standard routes to connect to their regional routes to be a big thing. For instance, from that map you can fly as far South as Brisbane from Bamaga, but then you wouldn't be able to connect to anything else without a drive.
 

ff-jr

Intern
Joined
May 2, 2009
Messages
98
Points
130
I just received the following edm:

Dear crumpet,

Virgin Australia announced today that they are entering voluntary administration. Velocity Frequent Flyer while owned by the Virgin Australia Group is a separate company and not in voluntary administration. As an American Express Velocity Card Member, we appreciate the uncertainty this creates.

We want to let you know that as a valued American Express customer, no matter what happens next we remain committed to ensuring you will continue to enjoy a Card with the benefits you value.

As the situation continues to develop, we'll be in touch to make certain you have the latest updates on your Card and what we're doing to back our customers and partners during these unprecedented times.

If you have any questions about your Card please visit our frequently asked questions page, or for more information about Virgin Australia's announcement, please click here.

Kind regards,

Will Thorne
Head of Airline Co-brands
 

Caversham04

Member
Joined
Nov 2, 2013
Messages
324
Points
220
I got same email tonight. I’ll be cancelling Amex Velocity card for the QF Amex Ultimate

I cancelled my Velocity Escape Amex card last night. I gather that switching immediately to a different Amex card means I'm not eligible for any of the bonus point / sign-up offers, so I'll probably apply for one of the Qantas Money credit cards initially, then possibly switch back to Amex in due course.
 

albatross710

Established Member
Joined
May 15, 2004
Messages
3,337
Solutions
1
Points
625
Virgin Australia announced today that they are entering voluntary administration. Velocity Frequent Flyer while owned by the Virgin Australia Group is a separate company and not in voluntary administration. As an American Express Velocity Card Member, we appreciate the uncertainty this creates.
My forecast will be that they also get sucked into the administration. VFF has a limited income stream now and has to pay staff, creditors etc And they no longer have a reason to exist without Virgin flying.

Administrators are very good at accessing cash and assets.
 

BNEFlyer

Member
Joined
Mar 25, 2012
Messages
381
Points
215
Virgin
Gold
Virgin Australia's collapse will have a big impact on Amex given Virgin is a partner for most Amex cards. If the airline ceases to operate, is transformed into an LCC, loses its international partners or emerges with a small domestic network, the appeal and value of many Amex cards will fall.
I wonder how Amex would respond?
I'd love to see the Membership Rewards program add Qantas as a transfer partner for all MR tiers, so people can use their points to fly domestically.
I'd also love to see the Platinum Card provide Qantas Club membership to replace the current Virgin lounge membership.
The Velocity Amex cards could disappear entirely.
Will be interesting to see what happens!
VA haven’t collapsed though.
 
Trying to access your favourite Australian websites when overseas only to discover they have been geo-blocked? Concerned about your internet privacy especially when using unsecured wifi? NordVPN will solve both these common problems.

Recommended by the Australian Frequent Flyer

guesswho2000

Member
Joined
Oct 26, 2017
Messages
100
Points
155
Qantas
Platinum
Virgin
Silver
Slightly OT, but Interesting to note that ANZ have stopped applications for the Rewards Travel Adventures card. Amex don’t appear to have done the same, in fact OH got a generic email about the Plat Velocity last night, business as usual and they’ll keep us updated.
 
Top