Tag Archives for virgin atlantic.
It’s been two years since they announced this was coming, and all they’ve done so far is change the program name and announced points will no longer expire, but Virgin is trying their hand at a coalition loyalty program across the group’s brands. There’s also a double points promotion for Virgin flights.
Virgin Atlantic has raised $525 million in cash via three new loans, and creditors have agreed to take a hair cut. 42.5% comes from a hedge fund, 50% of the loan comes from Virgin Group, and the remaining 7.5% from a new loan against an aircraft engine.
Delta and Virgin Group get preferred stock as a swap against payments they’re owed by the airline. And the airline is reducing its aircraft lease obligations.
Virgin Atlantic like all other airlines is struggling during the pandemic. They’re in the midst of a restructuring and they’ve only just restarted flying last month to 6 cities.
Previously they had only extended member elite status by six months. They’ve gone ahead and made that now a full year, extending elite vouchers too. And they’re introducing changes to their frequent flyer elite program that are actually positive. The biggest change is that award travel will earn elite qualifying credit starting September 1. You’ll be able to transfer points from a credit card, fly, and earn top tier elite.
As long as the restructuring is approved, miles are safe – and it seems likely that creditors will approve because in the current environment the value of collateral is likely depressed and liquidation of the carrier isn’t likely to secure greater repayment. Put another way, you want to sell Heathrow slots when they’re worth more, not when they’re likely to secure their lowest prices in years.
Virgin Atlantic has been looking for – but hasn’t yet received – a government bailout. They’ve presented themselves as insolvent without one.
To conserve cash there are several airline frequent flyer programs that have suspended redemptions, or partner airline redemptions, that would require them to pay out funds. So when Virgin Atlantic’s frequent flyer program went offline due to technology issues, and some bank card transfer partners suspended points transfers (so the points wouldn’t disappear enroute), that raised alarm bells.
Wide open business class awards for four or more passengers between the U.S. and Europe in Virgin Atlantic’s new product for multiple cities.
Since this is available for 2021, it’s reasonable to book, and there are great mileage values out there – and you can book the seats using points from any of the major transferable bank currencies.
Delta-controlled Virgin Atlantic has its hand out for government subsidies on the one hand, while running new bonus miles and elite qualifying promotions on the other.
I still think it’s too early to move the needle on travel with promotions, but Virgin is in a different boat than U.S. programs whose status years run with the calendar. They don’t have the option of waiting to extend elite status.
The man named Jack found Violet and offered to switch seats. It was her dream come true to sit in business class, and this was her first and maybe only time every doing it.
Some people feel though that if a passenger doesn’t want their premium cabin seat it should go to the next person on the upgrade list.
American Express is running a 30% bonus on transfers to Virgin Atlantic through December 28. You have to be logged into your Membership Rewards account to see the bonus.
There are some great uses for Virgin Atlantic’s miles.
Bank of America adopted two new rules for card approval over the last two years. Now they have another one that is either stricter – or less strict – than Chase’s 5/24, depending on whether you have a banking relationship with them.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
