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Virgin Flying Club miles splitting from the airline to create a Virgin-wide loyalty scheme

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Virgin Group, Virgin Atlantic and Delta Airlines have announced their intention to launch a brand new pan-Virgin loyalty programme with reward opportunities across all Virgin brands.

You can find out more here on the Virgin Atlantic website.

This is a further attempt by Virgin Group to bring all of its brands closer together, something which has been challenging in the past because each business has separate ownership and different shareholders.  Virgin Trains, for example, is owned by Virgin Group and Stagecoach whilst Virgin Atlantic is owned by Delta, KLM, Air France and Virgin Group (now just 20%).  Virgin Money is a PLC although it is in the process of being taken over by the parent of Clydesdale Bank and Yorkshire Bank.

Back in 2015 Virgin Group launched Virgin Red, an app which lets users earn points and prizes through quizzes, challenges and reverse auctions. By ‘getting to know’ the user, the app enables relevant Virgin products to be promoted. Virgin Red will be integrated into the new company.

An interesting ownership structure

Virgin Group and Delta Air Lines have founded a new entity, Virgin Group Loyalty Company (VGLC), which will own and manage the new loyalty scheme.

What is interesting is that Virgin Atlantic is not a shareholder.  The airline has effectively sold its loyalty scheme to the new company, although it is not known if any money changed hands.  Some deal must have been done to keep KLM and Air France happy, as they presumably invested in Virgin Atlantic assuming they would also be owning a profitable loyalty programme.

In general, moves like this are often done when an airline is in serious financial trouble.  You may remember how Etihad bought the Air Berlin loyalty programme, topbonus, at an inflated price – this was a backdoor way of injecting money into the airline without breaking EU rules on foreign investment.  There is no indication that this is being done for the same reason.

Who is running Virgin Group Loyalty Company?

VGLC will be launched in 2019 and headed up by Andrew Swaffield.  Swaffield is the well regarded former CEO of Avios Group (he was replaced by Gavin Halliday, who left to run Etihad Guest and Etihad Holidays, and who was replaced by the current CEO Drew Crawley).  VGLC will hopefully be a happier job than the one he left Avios Group to do – become CEO of Monarch Airlines ……

Andrew Swaffield said about the new programme:

“Virgin is one of the most admired brands in the UK and across the world, serving 53 million customers each year across 60 companies. Customers expect to be rewarded for their loyalty to Virgin and we want to ensure Virgin customers get the very best rewards possible. Our ambition is to bring the Virgin companies together and combine their appeal to customers, working together to create a truly outstanding offer”

Virgin Atlantic has said that there will be no changes to Virgin Flying Club for now, and that in the future members will have an expanded range of ways to earn and spend miles via the new Virgin loyalty programme.

Oli Byers, SVP Global Sales and Customer Loyalty, Virgin Atlantic, said:

“Today Flying Club offers Virgin Atlantic’s customers compelling and valuable rewards for flying on Virgin Atlantic, Delta and a range of Flying Club partners. This will continue to be the case, but at the same time we’re excited to work collaboratively with Virgin Group to build a stronger loyalty programme and unleash the power of our shared brand to reward customers for their loyalty to Virgin. We’ll be giving customers more reasons to join Flying Club and fly with Virgin Atlantic and our airline partners.”

It is important to note that Virgin Flying Club miles will be the ‘currency’ of the new scheme.

My initial concern here is how the relationship between Flying Club and Virgin Atlantic will work.  As they will soon be totally separate companies, the airline will effectively be selling reward flights to the loyalty programme.  It is fair to say that Avios Group and BA already work like this, but at the end of the day both companies are owned by the same parent and should be pushing in the same direction.  That is not necessarily the case here.

My other worry is that Virgin Flying Club moves towards revenue-based redemption once it is legally separate from the airline.  After all, it is highly likely that all of the other redemption options with Virgin Trains, Virgin Active, Virgin Media etc will be revenue-based at around 0.5p per mile.

I am also intrigued as to why Delta Air Lines is a shareholder in Virgin Group Loyalty Company but Virgin Atlantic (49% Delta owned) is not.  It is worth noting that we do not know the exact split of ownership between Virgin Group and Delta.

It will also be interesting to see how the arrival in 2019 of KLM and Air France as Virgin Flying Club earning and redeeming partners is impacted by this.

With Virgin Group as a shareholder, I am confident that VGLC will be a success.  Virgin Group will be able to put pressure on Virgin-branded businesses to sign up, and it could become a contractual requirement for new partners.

We will keep you updated as we find out more …..

The Virgin Atlantic website has the full statement here.


How to earn Virgin Points from UK credit cards

How to earn Virgin Points from UK credit cards (April 2024)

As a reminder, there are various ways of earning Virgin Points from UK credit cards.  Many cards also have generous sign-up bonuses.

You can choose from two official Virgin Atlantic credit cards (apply here, the Reward+ card has a bonus of 15,000 Virgin Points):

Virgin Atlantic Reward+ Mastercard

15,000 bonus points and 1.5 points for every £1 you spend Read our full review

Virgin Atlantic Reward Mastercard

A generous earning rate for a free card at 0.75 points per £1 Read our full review

You can also earn Virgin Points from various American Express cards – and these have sign-up bonuses too.

American Express Preferred Rewards Gold is FREE for a year and comes with 20,000 Membership Rewards points, which convert into 20,000 Virgin Points.

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & four airport lounge passes Read our full review

The Platinum Card from American Express comes with 40,000 Membership Rewards points, which convert into 40,000 Virgin Points.

The Platinum Card from American Express

40,000 bonus points and a huge range of valuable benefits – for a fee Read our full review

Small business owners should consider the two American Express Business cards. Points convert at 1:1 into Virgin Points.

American Express Business Platinum

40,000 points sign-up bonus and an annual £200 Amex Travel credit Read our full review

American Express Business Gold

20,000 points sign-up bonus and FREE for a year Read our full review

Click here to read our detailed summary of all UK credit cards which earn Virgin Points

(Want to earn more Virgin Points?  Click here to see our recent articles on Virgin Atlantic and Flying Club and click here for our home page with the latest news on earning and spending other airline and hotel points.)

Comments (83)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • Sam Wardill says:

    Is this new organisation solely focused on the UK? I’d be very interested to know if they have plans for expansion to cover Virgin Australia

    • Julian says:

      Does this also include Virgin Mobile, a company which I am a customer of and have tolerated for a while because it is so cheap compared to parent network EE on equivalent bundles. However this product very heavily tarnishes the Virgin brand (as also surely does or did Virgin Red) with one of the world’s very worst ever offshored call centres (in the Philippines where the staff seem to be told they have a job for life no matter how rude of offhand they are and that there is no connection between totally appalling English or very bad attitude to customers and their wage packets). They even repeatedly lie (which people seem to feel much safer doing when hardly speaking your language and working 10,000km away from the caller) that Virgin is currently building its own mobile transmitter network in the UK in response to any form of complaint about signal strength or call quality.

      Also the level of technical management at the Virgin end is so poor (or they are such a poor MVNO relation to parent network EE and not paying them enough money) that I have found myself with no data access and spending forever on the phone to be sent a new APN the last two times in the last few months that I have been to other EU countries where data roaming is supposed to be included. (although actually subject to a sneaky Fair Use policy that radically lowers the amount of data you can use compared to back in the UK). Also data use is basically disabled in other EU countries when you first arrive (phone calls and texts still always work) until you have spent days complaining, as though they are trying to circumvent the EU data roaming rules because they cost them too much.

      With avios.com just about to be closed I find it very hard to believe that Virgin is now keen to repeat exactly the same failed experiment that BA have just given up on?!!!

  • Nigel the Pensioner says:

    The easier it is to earn loyalty points, the harder they are to spend AND the less their value. Watch yet another so called “airline” loyalty programme tumble as its points are offered out to masses who simply don’t use their points as they never amass enough to do anything useful with! All tis does is devalue the product for those who DO get enough miles to use on meaningful travel by virtue of their travel habits. Join a gym and fly first class return to Sydney? I don’t think so!!

  • David says:

    I thought I read somewhere (here?), that after Aeroplan, nobody else would spin off their loyalty programme into a separate company. Is this different because it still has Virgin Group as a shareholder?

    • David says:

      … and the airline (Delta) that is in real terms controlling the airline. 49% direct, more via minority AF/KLM stakes, etc.
      Together Delta and Virgin Group will still on 69% of the airline directly.

      (Based upon the structure as last announced.)

  • Gavin says:

    Any chance of being able to earn and redeem across all of Sky Team?

    • David says:

      While there is always a chance, it is VERY VERY small and highly unlikely right now IMO.
      No need for that to be a priority – and VS will still not become a SkyTeam member.
      Alliances are not really in vogue these days, more direct partnerships.

      • Oh Matron! says:

        i’d hate for Virgin to move away from the current (heavily dominated by *Alliance airlines) to SkyTeam. Singapore / Air New Zealand vs Korean Air / Aeroflot? Kinda sullies the brand somewhat

        • Gavin says:

          Selfishly I want to harness virgin miles to redeem on Korean Airlines!

        • Alex says:

          Aeroflot fleet is 4 times bigger than that of Air New Z and service you get with Aeroflot is way better than what you get with BA, at least on Lon-Mow route, both economy and business class (that probably tells more about BA service nowadays).

  • Alan says:

    Can’t see this as a positive move. Time to cash in my miles I think before the inevitable devaluation. Shame, as I’ve been collecting them for a while and really enjoyed my economy (yes, economy!) flight to New York earlier this month.

    • Johnny Tabasco says:

      I wouldn’t rush into anything like that. We don’t know anything yet.
      We can’t just assume it will bad.

      • Alan says:

        It’s always bad. Its just the degree of badness that varies with these change announcements

        • Alex says:

          Semper in excretis sumus, solis profundus vareat

        • Lady London says:

          speak for yourself. some of us are pigs that like wallowing.

          • Rob says:

            I just booked 3 nights at St Regis New York for 60k Marriott which are selling for $1200 per night, so can’t argue with that!

    • TripRep says:

      Likely to be poor value for miles, how much was a cash ticket, be interested to see your calcs for comparison…

      • Alan says:

        Depends what you are comparing it to Trip Rep. We paid 55,000 miles each and £185 Taxes and fees (2xAdult 1xTeen). The VA fare for the same flights, whilst it varied, averaged about £800.

        I could have flown cheaper with a different airline, maybe, but I wasn’t looking to fly with a different airline.

        “Value” is what you want it to be. Could I have got more pence per mile by flying Upper? – almost definitely but a) I didn’t have enough miles for 3 x Upper seats and b) I didn’t want to spend the extra cash even if I had the miles. Cash is something I’m not particularly flush with but managed to get value out of my miles by actually going to New York rather than the alternative which was to not go to New York.

        • Alan says:

          Forgot to add that the economy experience on the A330-300 was very good. Crew were very attentive and I lost count of the number of times they came through the cabin with drinks/food. We were in 61 DF&G as this was the first row of 3 seats and there was surprisingly good legroom.

          All in all a very pleasant experience.

        • Alan says:

          That should have been 45000 miles not 55000. A standard Peak redemption on VS for this route would be 40000 but we paid an extra 5000 miles and flew back Delta as their Taxes/Fees were £50 per person cheaper and I’d rather have the cash than the miles.

          The Delta flight was fine but not as good as the VS one

        • Callum says:

          If you’re so enamoured with Virgin you wouldn’t have flown with anyone else, giving up on Flying Club seems rather bizarre?

  • Mr Dee says:

    If they give me more option to spend then great, if not don’t see the point.

  • Mikeact says:

    Suits me, the more competitive pressures put on the IAG group, the better.

  • Oh Matron! says:

    This should simplify things a little. mean, how many of us already have:

    A virgin money credit card
    A virgin money ISA
    A virgin life insurance policy

    Just because of the miles? 🙂

    • Roger1* says:

      Well, not because of the miles, I have/have had:
      – a Virgin mobile, long since given up as poor value;
      – a virgin.net e-mail address, long since abandoned except as the receptacle for junk mail.
      🙂

      In addition to the disappearing or sleeping brands – for vodka, cola, brides etc – one problem for me has been the apparent blessing of non-core products by the addition of the Virgin logo or Branson profile, using the license for the payoff but usually without any other control.

      It will be interesting to see what Mr Swaffield makes of this, assuming he stays long enough.

    • RussellH says:

      I do not have any of these. I do have 2 Flying Club miles – the other 10 000 went to Hilton.

      I do consider getting a free VS credit card for the 5000 miles; combine that with 5000 Amex points and get 15 000 Hilton points, then scrap the card.

      What would be useful would be if you could use Virgin Miles for Virgin Trains, but not if it were just 0.5p per mile off a ticket. If they did that one might as well stick with Nectar on Virgin Trains and get 0.5p off at Sainsbury’s.

      The problem with this is that it seems to be entirely marketing driven. I tend to stay well away from anything that is heavily promoted, on the grounds that what you are paying for is advertising, not the product. Remember the ridiculous “les français adorent le Piat d’Or”? They did not – it was utter rubbish. Stop by a small wine producer in France, Germany or Italy and taste what he/she makes. Decent stuff for a decent price, with no middlemen or marketing burden.

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