Bad news for Qantas Points holders who like to fly with Emirates: from 1 September 2020, the number of Qantas Points required to book award seats with the Dubai-based airline will rise significantly.

Right now, Emirates is included in the Qantas Classic Flight Reward price table, which also applies to award seats with Qantas, Jetstar, Airnorth, Fiji Airways, Air Vanuatu and American Airlines.

According to a notice on Qantas’ website, Emirates will only be included in this price table until 31 August 2020.

From 1 September 2020, Emirates moves into the Partner Classic Flight Reward table, in which award seats are more expensive.

This table applies to seats with Air France, Air Niugini, Alaska Airlines, British Airways, Cathay Pacific Airways, China Airlines, China Eastern, Cathay Dragon, EL AL, Emirates (for Emirates bookings from 1 September 2020), Finnair, Iberia, Japan Airlines, KLM, LATAM Airlines, Malaysia Airlines, Qatar Airways, Royal Air Maroc, Royal Jordanian, S7 Airlines and SriLankan Airlines.

Once the new pricing takes effect, a round-trip from Australia to Western Europe with Emirates will cost 132,400 Qantas Points in economy (up from 110,400), 318,000 points in business class (up from 289,200) or 455,000 points in first class (up from 433,800).

More annoyingly, you’ll no longer be able to combine Qantas and Emirates flights in one itinerary and pay the current, distanced-based price.

That’s because any airline in the ‘Partner table’ has its flights priced separately to other airlines in the same itinerary, which increases the total points cost.

To illustrate: if you fly from Sydney to Singapore with Qantas and then connect to an Emirates flight from Singapore to London (via Dubai), you currently pay 144,600 points. From 1 September, this will cost 68,400 points for Qantas’ Sydney-Singapore leg, and 119,200 points for Emirates’ Singapore-Dubai-London leg, totalling 187,600 points – a difference of 43,000 points.

Qantas Frequent Flyer members have until 31 August to lock in the current pricing. If you’re thinking about international travel once border restrictions ease, it may be a good idea to speculatively book some seats before 31 August. The fee will be just 6,000 points per person if you end up cancelling.

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Virgin Australia is once again allowing Velocity Points holders to use their points for domestic flights. As of today, travellers can book seats from 1 September 2020 on some of the carrier’s “most popular” routes (see below).

Since there is still a lot of uncertainty about travel restrictions, Virgin is providing extra flexibility by waiving cancellation and change fees for reward bookings until 1 September. That means you can get a full refund of points and money paid if you (or Virgin Australia) cancel the booking for any reason before 1 September.

By then, Virgin should have new owners and its future will be clearer. Nevertheless, any bookings made right now should be viewed as purely speculative.

Other Velocity Points uses, like transfers to KrisFlyer and online store redemptions, remain frozen.

Virgin Australia also says it has implemented additional cleaning and hygiene measures including social seat distancing onboard.

Initial list of routes as at 15 May 2020 – subject to change

*Travel to this destination may require a transfer through a connecting airport. Minimum and maximum connection times apply. The connection time will be displayed during the booking process.

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The Virgin Australia Group this morning announced that it has entered voluntary administration “to recapitalise the business and help ensure it emerges in a stronger financial position on the other side of the COVID-19 crisis”.

Interestingly, Velocity Frequent Flyer, as a separate company owned by the Group, is not in administration – perhaps reflecting its value as an independent entity with over 10 million customers.

The decision to enter administration comes as Virgin has been seeking financial assistance from a number of parties, including existing owners and Australian governments, to get it through the crisis. These requests have all been rebuffed so far.

The COVID-19 crisis couldn’t have come at a worse time for Virgin, which is financially vulnerable after years of losses and poor management. The new CEO Paul Scurrah began a turnaround program only months ago, with promising early results.

It will be up to the administrators now to find the best path for the airline’s owners and creditors. Administrator, Vaughan Strawbridge, said: “Our intention is to undertake a process to restructure and re-finance the business and bring it out of administration as soon as possible.

“We are committed to working with Paul and the Virgin Australia team and are progressing well on some immediate steps. We have commenced a process of seeking interest from parties for participation in the recapitalisation of the business and its future, and there have been several expressions of interest so far,” said Mr Strawbridge.

Media reports suggest multiple private equity firms are interested in acquiring the airline if the debt can be restructured.

For now, it looks like members’ Velocity Points balances are safe, however all redemptions have been paused.

With travel restrictions in place, many people have been redeeming points for non-flight benefits like wine and gift vouchers.

Velocity has issued a statement that suppliers are unable to meet this demand, but another reason for pausing redemptions is no doubt the huge cash drain for Velocity.

Virgin will continue to operate scheduled domestic and international flights.

Our thoughts are with all the Virgin Australia staff, whose futures are now very uncertain.

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It’s no secret that Virgin Australia is struggling right now, with lots of stories in the media questioning its viability. The airline couldn’t turn a profit when times were good, so now that the coronavirus has decimated the travel industry its prospects look even gloomier.

I don’t think Virgin is going under immediately, but it’s certainly possible if this crisis drags on. It has billions of dollars in debt and a limited amount of cash on hand. The airline has asked the federal government for a $1.4 billion loan to see it through, but the federal cabinet is reportedly split on the issue.

Over the past couple of weeks there’s been a ‘run on the bank’ of sorts, with lots of Velocity Frequent Flyer members rushing to redeem their points in case the airline went belly-up. Many of these people probably have Ansett-tinged nightmares in mind.

Velocity has now restricted two of the most popular ways members have been spending their points. Transfers to Singapore Airlines’ KrisFlyer program were suspended tonight. Velocity’s website now displays the following message: “Velocity Frequent Flyer and Singapore KrisFlyer are temporarily suspending conversion of Points and Miles between the two programs. We’re looking forward to providing you with this program feature once flight schedules return to normal.”

Earlier this week, Velocity also imposed a limit of one gift voucher redemption per day “due to high demand”.

I’m really not sure what advice to give to Velocity members. Your two options are to ride the crisis out with the risk of losing your points if the airline fails, or spend your points now on items at the Velocity store. You won’t get as much value as using points on flights (you’ll get around 0.5 cents per point at the Velocity store), but at least you’ll get something.

If you’re wondering what other people are thinking and doing, join the discussion over at the Australian Frequent Flyer forum.

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American Express has implemented measures to support customers affected by COVID-19, including those who hold unused travel credits or complimentary flight benefits that come with their Amex card.

Travel Credits

Amex provides annual travel credits with cards like the Platinum Card, Explorer Credit Card and Qantas Amex Ultimate Card.

For card members with travel credits expiring between 1 February 2020 and 30 June 2020 that have not been redeemed, Amex is extending the expiry date to 31 December 2020. As always card members can book for travel up to 10 months in advance.

There is no need to call or take any action, as the extended expiry date will be automatically reflected in online accounts within the next 6 to 10 weeks. All other terms and conditions for the travel credit remain the same.

Velocity Platinum Card Complimentary Flights

The Velocity Platinum Card comes with an annual complimentary flight benefit, which is also being extended.

For flights expiring between 1 February 2020 and 30 June 2020 that have not been redeemed, Amex is extending the expiry date to 31 December 2020.

Again, there’s no need call Amex or take any action as the extended expiry date will be automatically updated.

When you’re ready to fly, you can redeem the flight here.

All other T&Cs remain the same.

More information about these changes and other measures Amex is taking regarding the coronavirus can be found on its website here.

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Given the dramatic decline in travel due to the coronavirus, Qantas is extending Qantas Club memberships and complimentary lounge invitation expiry dates by six months.

Paid Qantas Club members with a membership year anniversary date between 23 March 2020 and February 2024 will automatically receive a six-month membership extension. This will be awarded to members who purchased their Individual, Corporate, Partner, or Group membership or an Annual Guest Card, using a credit or debit card, or Qantas Points. The extension won’t be provided to complimentary Qantas Club members.

Affected customers don’t need to register for this offer – it will be applied automatically as follows:

• If your Qantas Club membership is due to expire in March, April or May 2020, it will automatically be renewed by the end of May 2020, with an additional six-months extension from the original month of expiry.
• If your Qantas Club membership is due to expire between June 2020 and February 2024, it will automatically be extended for six-months, by the end of May 2020.

Most complimentary lounge invitations issued prior to 23 March 2020 will also automatically be extended for an extra six months. This will be processed by the end of April 2020.

For members who received a lounge invitation upon attaining or retaining Silver Tier status, you will receive one additional lounge invitation along with your 12-month Tier Status Extension, so the six-month extension will not apply to your original invitation.

For members who recently joined the new Points Club program, your newly acquired lounge invitations have been issued with a 12-month validity, expiring in 2021, so the extension will not apply to these invitations.

You can view the expiry dates of your invitations via the Complimentary Lounge Invitations portal. More information about these changes is available on Qantas’ website here.

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To help frequent flyers preserve their status during this time of massive travel disruption, Virgin Australia is extending status by 12 months and crediting bonus status credits to all current Silver, Gold, and Platinum Velocity Frequent Flyer members.

The extra status credits boost could even help customers reach a higher tier with no additional flying.

Here’s how many status credits Virgin will be gifting:

The status credits should be credited in the first week of each month.

Virgin Australia will be contacting customers with all the details in the next two weeks. You don’t need to do anything at this time.

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