After Virgin Australia entered voluntary administration on April 21, the race to purchase the crippled airline began with around 20 interested bidders. That list has now been narrowed down to just two parties, with Boston-based private investment firm Bain Capital, and New York-based global investor Cyrus Capital Partners announced as the two final bidders.
Members of Virgin Australia’s Velocity Frequent Flyer program have taken keen interest to the administration period, as well as travellers who booked tickets before the airline collapsed. So, that begs the question, are Velocity points and outstanding bookings safe?
Cyrus’s Statement to the AFTA
In an email to the Australian Federation of Travel Agents (AFTA) chair Tom Manwaring, Cyrus Capital’s senior adviser Jonathan Peachey said that the firm will honour Velocity points and outstanding bookings.
“Rewarding customer loyalty is also important to Cyrus, especially at this time, and if Cyrus becomes the new owner of Virgin Australia, points held by members of the Velocity Frequent Flyer program will be protected and honoured,” he said.
Peachey also confirmed that the firm would honour outstanding tickets “without hesitation” if Cyrus were successful in becoming the new owner of Virgin Australia.
“In the event that changes to Virgin Australia’s flight schedule are necessary as operations increase, Cyrus will ensure that affected customers receive credit to rebook on alternative Virgin Australia flights.” he wrote.
What did Bain have to say?
According to Travel Weekly, Manwaring has also written to Virgin Australia’s administrator Deloitte along with Bain Capital. It is understood that Bain Capital has made a similar statement to the AFTA in response to questions surrounding the fate of points and tickets.
It is also worth mentioning that Bain is keen to develop Virgin Australia’s technology systems, which would potentially bring Virgin Australia and Velocity into a single website and app.
Summing up
While the choice to honour outstanding tickets and Velocity points is ultimately a decision for Virgin Australia’s new owner, this news from Cyrus will be welcomed many.
Administrator Deloitte is expected to make its decision on Virgin Australis’s new owner by June 30.
