Frequent flyer war: Virgin launches its counter-attack on Qantas

The carrier has delivered its pitch to snatch Qantas’s most loyal passengers with a lucrative new membership.

‘We know we have a compelling offer for business and leisure travellers who are emerging from COVID-19 with less discretionary spend’: Virgin chief executive Jayne Hrdlicka. Picture: Lyndon Mechielsen

A war for the wallets of well-heeled business travellers has erupted, with Virgin Australia launching a counter-attack on Qantas over its plan to lure the airline’s most loyal passengers across to its frequent flyer scheme.

In a shot across the bow of Qantas, Virgin Australia said the company would “invite” people with Qantas Frequent Flyer Gold status and above to receive a Velocity Discover Gold Status trial membership for three months, which will include “lucrative bonus points” when customers book and fly with the airline.

The carefully curated pitch, described by Virgin as the company going “one better” on frequent flyer offers, is a direct challenge to Qantas’s decision last month to “fast track” top-tier Velocity members to Gold status on the airline’s own frequent flyer scheme.

Under Virgin’s initiative, those who hold eligible loyalty status with Qantas can retain Velocity Gold Status for 12 months and receive a membership for their companion if they take one eligible flight and earn 80 status credits during a three-month trial period.

During that “trial” period, people who apply by December 21 will be entitled to lounge access, priority boarding, extra checked baggage, and preferential seating.

Virgin Australia CEO Jayne Hrdlicka said the company’s frequent flyer program had retained its popularity with its 10 million members throughout the COVID-19 crisis.

“We know we have a compelling offer for business and leisure travellers who are emerging from COVID-19 with less discretionary spend, but who still want lounges, preferential seating, priority boarding, checked baggage, and all the comforts a mid-market carrier can offer their guests without the price tag,” Ms Hrdlicka said.

Having emerged from administration under new owner Bain Capital, Virgin Australia was still in the process of reviewing its business-class product, and had ­announced the closure of lounges in Darwin, Cairns, Mackay, Alice Springs, Perth T2 and Wellington.

The carrier’s Canberra lounge was also under review, which could leave only Brisbane, Sydney, Melbourne, Adelaide, Perth (T1) and the Gold Coast.

Virgin’s strategy to entice Qantas customers to switch allegiances comes less than a month after the national carrier announced that people who hold eligible loyalty status with one of 16 qualifying airline programs would be able to apply for gold-tier status, providing they rack up 100 credits in three months.

The “Qantas Status Fast Track” initiative, a first for the airline, was prompted by a flood of inquiries from members of other loyalty programs about joining the frequent flyer scheme. Changes in the local market with Virgin Australia repositioning itself, and restrictions on overseas travel, are thought to have triggered the demand to switch ­allegiance.

Qantas counts more than 13 million members in its frequent flyer program, against 10 million in Virgin’s Velocity scheme.

On Monday, Ms Hrdlicka ­confirmed that the airline’s Melbourne and Sydney lounges would reopen on December 15 after the Brisbane lounge reopened last month. She said the airline’s Gold Coast, Perth and Adelaide lounges would reopen early in the new year.