East Coast Wine Trail

East Coast Wine Trail
East Coast Wine Trail

Friday, 8 May 2020

Virgin Australia stops issuing credit vouchers and refunds

The news for anyone holding unused Virgin Australia tickets, or a swag of frequent flyer points, is not looking good.

The airline this week stopped issuing customers with credit vouchers or refunds, Travel Mole reports.

Customers received an email from the airline warning it has "temporarily paused issuing new travel credits and refunds while we wait for direction from the administrator".

The pause is designed to protect the administrators from personal liability under Australian law.

Outstanding refund and credit requests have been logged and will still be vaild - but only if a new buyer agrees to honour them.

In the meantime, all customers awaiting refunds or vouchers are technically unsecured creditors of the company.

"The administrators will be able to provide more certainty on arrangements for those customers in the coming days," a spokesperson for administrator Deloitte said.

Deloitte administrator Vaughan Strawbridge said the credits "are still there, they haven't gone anywhere and are intended to be used in the future.

"They are going to be an important part of the restructure of the business and an important part of loyalty to Virgin Australia."

Deloitte says there are 'high-quality bidders with fantastic credentials' with up to 20 entities showing an interest in taking over Virgin.

"We remain confident that our target of achieving a sale by the end of June is achievable," Strawbridge said.

I'm a whole lot less confident and have basically written off my 130,000+ frequent flyer points. 

And I'll be happy to tell former Virgin Australian chief John Borghetti - a man who lied repeatedly to customers - exactly what I think of him should our paths ever cross.  

1 comment:

  1. No points myself. But my voucher for recent non flight will probably be worthless.