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    Home»News»Airline News»Virgin Australia»Virgin Australia announces its future direction
    Virgin 737 (By Andrew Thomas from Shrewsbury, UK)
    Virgin Australia

    Virgin Australia announces its future direction

    MarkBy MarkNovember 18, 2020No Comments3 Mins Read

    Fresh out of administration, Virgin Australia has revealed its future direction under new management. As expected, under new CEO Jayne Hrdlicka, the airline will be targetting the mid-market. While that had previously been flagged, we now have a much better sense of what that means.

    At a high level, we can expect:

    • Remaining lounges to re-open from today
    • On-board, passengers will be able to choose from Business, Economy and Economy-X
    • No change to Velocity Frequent Flyer with substantial airline and non-airline earn and redemption opportunities for its 10 million members
    • Virgin Australia Regional Airlines (VARA) retained and restructured
    • Significant technology investment planned to upgrade customer experience

    What to expect

    Lounges

    From today, the lounges will begin to reopen. At least for those that will be reopening. The lounges in Mackay, Cairns, and Darwin will be closing due to “low visitation rates”.

    This leaves the following lounges in the network

    • Melbourne
    • Sydney
    • Brisbane
    • Adelaide
    • Perth
    • Gold Coast

    Brisbane will be the first lounge to reopen, with the rest opening as demand increases. The all-new Adelaide lounge is expected to open in the first quarter of 2021.

    Business Class

    Virgin Australia will be retaining a Business cabin, although they are still working through the detail of the product offering.

    While we will hear more next year, for now, they are just saying that it will “better align to the expectations of the cabin’s core customers.”

    Economy Class

    In economy, passengers will revert to a new buy onboard offering. As a result, the current “snack” will be no more. It’s not all bad though – coffee, tea and water will still be offered.

    Passengers will still be able to choose Economy-X, with its extra legroom, and dedicated overhead luggage area.

    The future of in-flight wifi and entertainment is not clear at the moment. This is apparently still under review, and again we will find out more in the new year,

    Velocity Frequent Flyer

    There is not a lot of news on the Frequent Flyer front. The program will be staying pretty much as it is at the moment. In particular, the current earn and burn rates will remain in place.

    Having said that, there is a promise of additional partners coming on board next year.

    Thoughts

    The good news in all of this is that it is not as bad as many had feared. In many ways, it seems to be a continuation of where they had been planning to take the airline anyway.

     

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    Mark

    Mark, the founder of Fly Stay Points, caught the travel bug early in life. During his travels, he eventually came to stumble upon loyalty programs, He first discovered the world of airline frequent flyer programs, and later hotel loyalty programs. He is always plotting his next adventure - and this includes working out how to leverage the loyalty programs. It is a constantly evolving world. Promotional opportunities come and go. Airlines come and go. New hotels open, old hotels change brands, and on it goes. FlyStayPoints was started as a way to try to keep on top of all this. Keep track of promotions. Understand the changes in the marketplace.

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