Virgin Atlantic appoints advisors to manage a bankruptcy process

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• Ken says:

  9 May9 May 16:37

  Will be much the best solution by far if a ‘Phoenix’ Virgin can fly again, with fresh capital.

  Restructure the business, concentrate on profitable routes using more fuel efficient planes.

  No shame in administration under current circumstances and don’t think there is much damage to brand.

• David Cohen says:

  9 May9 May 16:52

  What would this mean for 932 plated tickets with on-carriage to other carriers? Would IATA have to suspend them from the clearing procedures? If the new business is liability free, that comes with the implication that these would not be honoured by other airlines? Unless there’s some prior agreement with Delta and KLM/AF (who I imagine most of the flights would be with)?

• Baji Nahid says:

  9 May9 May 17:02

  Oh god, I have flights that were ticketed by virgin but were to go on KLM and Delta. If virgin goes bust i believe i may lose my tickets unless DELTA OR KLM would like to honour these 🙁

  • Baji Nahid says:

    9 May9 May 17:03

    I have become stressed as I have saved a lot for these flights and I would be absolutely gutted if I lose these 🙁

  • Harry T says:

    9 May9 May 17:14

    Are they redemption tickets? If so, there’s a slim chance Delta might honour them (I wouldn’t count on it). KLM would likely not. The airline partners rely on Virgin paying them after you take your flight, if booking using VFC miles.

    • Baji Nahid says:

      9 May9 May 17:17

      Hey Harry!, unfortunately these were cash tickets paid on a credit card through an OTA but ticketed by virgin. One flight just got cancelled now that was for the end of may so im gonna try getting a refund from the OTA but the other flight is in November and thats still online.

      • Harry T says:

        9 May9 May 20:10

        If they are cash fares then you would be entitled to a refund or rerouting. The OTA might make it a bit more of an arduous process if they aren’t on the ball.

• r* says:

  9 May9 May 17:38

  In this situation would the points be wiped out or would they likely transfer to the new virgin?

  • marcw says:

    9 May9 May 17:41

    No one knows.

  • Rob says:

    9 May9 May 17:58

    You can’t afford to annoy your best customers ….

    • Mikeact says:

      10 May10 May 10:13

      You mean 1000’s more will say, ‘I’m never flying Virgin again ‘? …. (if they return)
      I think not.

      • Rob says:

        10 May10 May 10:15

        If you wipe our their miles and status, there is far less reason to return.

        • Mikeact says:

          10 May10 May 12:00

          Sorry, not clear. I meant to say, they may be upset, 1000’s of their customers, but they will definitely not shun the ‘new virgin.’
          Bit like BA’s upset thousands…..of course they will fly BA again, despite what they say.

        • jc says:

          10 May10 May 15:45

          Disagree, Mikeact. No one was flying BA for the free meals. People are flying Virgin because of the miles stash / status they have there.

        • Mikeact says:

          10 May10 May 17:06

          You need to backtrack and read the numerous ‘No more BA for me’ etc etc., that have been posted on this site for months now…it’s nothing new. (And this is just one site)

• Shacker says:

  9 May9 May 17:43

  An option for those not wanting hotel points would be a virgin gift card which can be used at other virgin group sites, the experience site for example doesn’t seem to be run by Virgin but a third party

  • Rob says:

    9 May9 May 17:57

    For big balances, booking a Virgin Holiday on miles works. Better return (0.55p) and ATOL protected.

    • Mr Magloo says:

      9 May9 May 18:53

      Very Wise

    • Ben says:

      9 May9 May 23:56

      But, are the points protected under ATOL – do they count as ‘cash’ towards the holiday?

      • Rob says:

        10 May10 May 08:23

        I would say yes because you are using miles to pay a cash bill – it is not a ‘redemption’ holiday. Bung £100 on a credit card for extra protection.

      • Craig says:

        10 May10 May 08:45

        Hi Ben, I believe they would be protected by ATOL but most travel insurance companies don’t recognise them as payment and will not payout cash in the event of a travel insurance claim.

    • Lady London says:

      10 May10 May 14:29

      Someone was saying a Virgin Holidays booking (which would bring you under ATOL protection) would only need a £100 night at, say, LGW or LHR as well as your flight.

• Chris Heyes says:

  9 May9 May 18:10

  So if VA could be bought by Branson, that also means Branson could inject all his money into Virgin now and keep it afloat if he so desired, could he ?

  • Shacker says:

    9 May9 May 18:23

    Well he could but it wouldn’t make much sense as the debts would still be there, when he does this the debts are wiped so they can have a fresh start

    • Shacker says:

      9 May9 May 18:23

      Unless you meant after he took the deal

      • Chris Heyes says:

        9 May9 May 18:52

        Shacker, Yes after the deal , because 2/3 years down the line unless he injected his money in NEW Virgin they would be in the same position again.
        His position is inject just enough in many “Virgin Business” gain from growth.
        The problem with VA has been ALWAYS on the edge will be same in 2/3 years unless Branson devotes his time and money in New Virgin (Mainly His Time but he’s got space travel as his new toy)

        • Will says:

          9 May9 May 21:07

          Who knows, in a post apocalypse world where there are empty slots at Heathrow and less overall travel requirements an agile airline without an excessive fleet and the flexibility to try different routes might be a better model than a monolith designed to operate at 2019 levels with a near monopoly over slots and commitments on far too many aircraft.

• BJ says:

  9 May9 May 18:46

  @Rob, would Conrad Samui Residence not work for your family? A 2 bedroom pool villa with sea view is usually at least £1000/night including tax and fees. Premium room reward night is usually over 300,000 so you would be returning your 0.33p valuation, and possibly better as prices can get to £1500/night at times.

  • TGLoyalty says:

    9 May9 May 18:52

    Only if he would be willing to pay £1k/night for a 2 bed villa in Koh Samui anyway

    • Rob says:

      9 May9 May 21:59

      Premium Room rewards are a function of the cash rate and usually nearer 0.25p per Hilton point. That’s over 60% loss vs sticking and hoping for 1p on a flight.

• Anwar says:

  9 May9 May 18:48

  So are people still holding onto their Virgin miles ? Or is it time to press the release switch. I’ve held my horses thus far, but I’m not sure now.

  • Peter K says:

    9 May9 May 19:16

    Basically, the arguments for and against are the same as before and thus the replies will be as well.

  • philco says:

    9 May9 May 20:28

    I am still holding but I already have a ton of Hilton points and will soon have a ton more given 12x points on grocery spend on certain US issued Hilton cards.

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