Skip to content

Virgin Australia devalues Velocity elite status, pauses codeshare flight sales

Oct. 22, 2020
4 min read
Virgin Australia Plane at Gate
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Virgin Australia quietly unveiled a handful of negative changes to its Velocity loyalty program. These include the suspension of selling international codeshare flights and devaluing a handful of elite status benefits.

These changes come months after Virgin Australia entered administration — similar to filing for bankruptcy in the U.S. — due to the coronavirus pandemic. In the months following, the airline announced it would end most international flights, suspend its transpacific partnership with Delta Air Lines and run an all-737 fleet in the future.

That said, this round of changes to codesharing and loyalty programs show just how dire the situation is at Virgin Australia. Here's a look at all of the changes recently announced by Virgin Australia.

For more TPG news delivered each morning to your inbox, sign up for our daily newsletter.

Virgin Australia suspends international codeshares

Virgin Australia won't sell codeshare flights until further notice (Photo by SAEED KHAN/AFP via Getty Images)

Effective September 2020, the airline has suspended the sale of codeshare flights on its international partners. So, in short, you cannot book partner flights with a Virgin Australia flight number until further notice. Travelers who have already flown one of these flights can request retroactive points credit if the points don't automatically post to their loyalty account.

For background, codesharing is when an airline sells another carrier's flight as its own. For example, you were once able to book Virgin Australia flights that were actually operated by Delta Air Lines. The flight would be a Delta flight, but Virgin Australia members would be able to book the flight with a Virgin Australia flight number.

Thankfully, you can still credit flights booked with a partner to Virgin Australia, so long as the flight doesn't have a Virgin Australia flight number. This means that you can put your Virgin Australia loyalty number on a Delta itinerary and earn points and status credits without change. The airline's website notes that Velocity members will continue to earn a Tier Bonus on Delta Air Lines and Etihad Airways partner flights.

Related: 8 common misconceptions about visiting Australia

Huge elite status devaluations

Virgin Australia has gutted some of its most valuable elite status benefits — including Comfort+ upgrades on Delta flights, (Photo by Nicolas Economou/NurPhoto via Getty Images)

Even worse, those with Virgin Australia Velocity elite status won't have access to as many benefits going forward. Effective September 2020, Velocity Gold and Platinum members can no longer access Alitalia, Hainan Airlines and Hong Kong Airlines lounges worldwide. This is especially disappointing to those flying to cities where Virgin Australia or another partner doesn't offer a lounge, like Hong Kong (HKG). It's also worth noting that Virgin Australia's own lounge network remains closed.

Sign up for our daily newsletter

Further, Velocity Platinum, Gold and Silver members can no longer request upgrades to Comfort+ on Delta flights. Further, since Virgin Australia is no longer selling Delta codeshare flights, you can't upgrade with points on these international flights either.

Related: The best ways to use points and miles to fly from the U.S. to Australia

Bottom line

These changes are indeed heartbreaking for Virgin Australia elites. That said, Australia has continued to restrict international travel, so it won't actually affect too many travelers. It sounds like many of these changes are temporary, but it makes me wonder about the future of Virgin Australia as a whole. If it transitions to a mostly domestic airline, will it also break off its international partnerships?

If it does, this could come as a huge devaluation to Velocity elites in the long-run. With no international partners and benefits, many Australian partners will be forced to move loyalty elsewhere if they rely on international connections for leisure or business travel. These travelers will likely switch to Qantas — the largest Australian airline — so there's the possibility of a lucrative status match on the horizon.

Only time will tell how this plays out, but I hope that Virgin Australia is able to bounce back post-pandemic. Competition has proven to be a good thing for the airline industry, and without it, we might see higher flight prices in Australia. Even a smaller Virgin Australia with international partnerships would be better than a Qantas monopoly on the market.

Feature photo by Peterfz30/Shutterstock

Featured image by (Photo by Peterfz30/Shutterstock)

Top offers from our partners

How we chose these cards

Our points-obsessed staff uses a plethora of credit cards on a daily basis. If anyone on our team wouldn’t recommend it to a friend or a family member, we wouldn’t recommend it on The Points Guy either. Our opinions are our own, and have not been reviewed, approved, or endorsed by our advertising partners.
See all best card offers

TPG featured card

OFFER ENDS 5/3/23
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
3 / 5
Go to review

Rewards

2 - 6X points
6X6x Marriott Bonvoy Points on each dollar of eligible purchases at hotels participating in the Marriott Bonvoy® program.
4X4x points for purchases made at restaurants worldwide, at U.S. gas stations, on wireless telephone services purchased directly from U.S. service providers and on U.S. purchases for shipping.
2X2x points on all other eligible purchases.

Intro offer

Earn 125,000 points75,000 points
Limited Time Offer: Earn 125,000 Bonus Marriott Bonvoy Points after you use your new Card to make $5,000 in purchases within the first 3 months of Card Membership. Offer ends 5/3/23.

Annual Fee

$125

Recommended Credit

670-850
Excellent/Good
Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

Why We Chose It

The Marriott Bonvoy Business Amex is a stacked card with a rewards rate that will help you earn bonus points on everyday and business-related purchases. You'll earn 15 elite night credits each calendar year, and receive automatic Gold elite status. Finally, the free night award certificate with a redemption level of 35,000 points or less can get you hundreds of dollars in potential value each year.

Pros

  • 6 points per dollar on eligible purchases at hotels participating in the Marriott Bonvoy program
  • 4 points per dollar at restaurants worldwide, U.S. gas stations, wireless telephone services purchased directly from U.S. service providers and U.S. shipping
  • 2 points per dollar on all other eligible purchases
  • Earn a free-night award each card renewal month (up to 35,000 points)
  • Receive 15 elite night credits to jump-start status
  • Transfer Marriott points to 40+ airlines

Cons

  • Airline points transfer ratios are poor
  • Must spend $60,000 in a year for second free-night award
  • Limited Time Offer: Earn 125,000 Bonus Marriott Bonvoy Points after you use your new Card to make $5,000 in purchases within the first 3 months of Card Membership. Offer ends 5/3/23.
  • Receive a 7% discount off standard rates for reservations of standard guest rooms at hotels that participate in the Marriott Bonvoy program when you book directly. Terms and Conditions Apply.
  • 6x Marriott Bonvoy Points on each dollar of eligible purchases at hotels participating in the Marriott Bonvoy® program.
  • 4x points for purchases made at restaurants worldwide, at U.S. gas stations, on wireless telephone services purchased directly from U.S. service providers and on U.S. purchases for shipping.
  • 2x points on all other eligible purchases.
  • Receive 1 Free Night Award every year after your Card renewal month. Plus, earn an additional Free Night Award after you spend $60K in purchases on your Card in a calendar year. Awards can be used for one night (redemption level at or under 35,000 Marriott Bonvoy® points) at hotels participating in Marriott Bonvoy®. Certain hotels have resort fees.
  • Enjoy Complimentary Marriott Bonvoy Gold Elite Status with your Card.
  • Terms apply.
Apply for Marriott Bonvoy Business® American Express® Card
at American Express's secure site
Terms & restrictions apply. See rates & fees
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
3 / 5
Go to review

Rewards Rate

6X6x Marriott Bonvoy Points on each dollar of eligible purchases at hotels participating in the Marriott Bonvoy® program.
4X4x points for purchases made at restaurants worldwide, at U.S. gas stations, on wireless telephone services purchased directly from U.S. service providers and on U.S. purchases for shipping.
2X2x points on all other eligible purchases.
  • Intro Offer
    Limited Time Offer: Earn 125,000 Bonus Marriott Bonvoy Points after you use your new Card to make $5,000 in purchases within the first 3 months of Card Membership. Offer ends 5/3/23.

    Earn 125,000 points
    75,000 points
  • Annual Fee

    $125
  • Recommended Credit
    Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

    670-850
    Excellent/Good

Why We Chose It

The Marriott Bonvoy Business Amex is a stacked card with a rewards rate that will help you earn bonus points on everyday and business-related purchases. You'll earn 15 elite night credits each calendar year, and receive automatic Gold elite status. Finally, the free night award certificate with a redemption level of 35,000 points or less can get you hundreds of dollars in potential value each year.

Pros

  • 6 points per dollar on eligible purchases at hotels participating in the Marriott Bonvoy program
  • 4 points per dollar at restaurants worldwide, U.S. gas stations, wireless telephone services purchased directly from U.S. service providers and U.S. shipping
  • 2 points per dollar on all other eligible purchases
  • Earn a free-night award each card renewal month (up to 35,000 points)
  • Receive 15 elite night credits to jump-start status
  • Transfer Marriott points to 40+ airlines

Cons

  • Airline points transfer ratios are poor
  • Must spend $60,000 in a year for second free-night award
  • Limited Time Offer: Earn 125,000 Bonus Marriott Bonvoy Points after you use your new Card to make $5,000 in purchases within the first 3 months of Card Membership. Offer ends 5/3/23.
  • Receive a 7% discount off standard rates for reservations of standard guest rooms at hotels that participate in the Marriott Bonvoy program when you book directly. Terms and Conditions Apply.
  • 6x Marriott Bonvoy Points on each dollar of eligible purchases at hotels participating in the Marriott Bonvoy® program.
  • 4x points for purchases made at restaurants worldwide, at U.S. gas stations, on wireless telephone services purchased directly from U.S. service providers and on U.S. purchases for shipping.
  • 2x points on all other eligible purchases.
  • Receive 1 Free Night Award every year after your Card renewal month. Plus, earn an additional Free Night Award after you spend $60K in purchases on your Card in a calendar year. Awards can be used for one night (redemption level at or under 35,000 Marriott Bonvoy® points) at hotels participating in Marriott Bonvoy®. Certain hotels have resort fees.
  • Enjoy Complimentary Marriott Bonvoy Gold Elite Status with your Card.
  • Terms apply.