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Virgin Australia Goes Into Voluntary Administration

Virgin Australia Goes Into Voluntary Administration

Old Apr 24, 20, 10:28 pm
  #16  
 
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Originally Posted by OZFLYER86 View Post
you seriously think a bank is going to lose any money ?

Doesn't matter what consumer law says, you cannot get blood from a stone.
Not sure there is a law as such, but recovery of a chargeback is a matter between the merhant and the merchant bank. Went Ansett went under, banks wore tens of millions in chargebacks
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Old Apr 24, 20, 11:52 pm
  #17  
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Originally Posted by OZFLYER86 View Post
you seriously think a bank is going to lose any money ?
Doesn't matter what consumer law says, you cannot get blood from a stone.
When a credit card is used a % goes to the bank/credit card. Charge backs are just part of doing business. Some times they receive $ back from the vendor and sometimes not.
Banks and airlines must comply with consumer law.
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Old Apr 25, 20, 5:09 am
  #18  
 
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Originally Posted by Mwenenzi View Post
When a credit card is used a % goes to the bank/credit card. Charge backs are just part of doing business. Some times they receive $ back from the vendor and sometimes not.
Banks and airlines must comply with consumer law.
Chargebacks are not statutory instruments written into law. It is a clawback mechanism built in to Visa and Mastercard, American express and other payment houses to give confidence in the system.

Banks are bound by the conditions imposed on them by visa and mastercard, et al. It isn't the banks choice to reinburse or not - it is dictated by the contractual operating procedures imposed by Visa, mastercard, etc.
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Old Apr 27, 20, 4:39 pm
  #19  
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Originally Posted by OZFLYER86 View Post
you seriously think a bank is going to lose any money ?

Doesn't matter what consumer law says, you cannot get blood from a stone.
If the bank cannot recover the funds from a failed supplier, it is the bank's problem. It due to the banks' contract with Visa/Matercard/AMEX/etc. .
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Old May 7, 20, 2:52 pm
  #20  
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Link--> Virgin Australia suspends refunds, travel credit for cancelled flights

Virgin Australia has stopped issuing credits and refunds for cancelled flights, saying the matter now rests in the hands of the appointed administrators who continue to seek a buyer for the failed airline.Travellers who had requested a refund or travel credit for a cancelled flight are now receiving emails to advise that neither will be forthcoming, as the airline has "temporarily paused issuing new travel credits and refunds while we wait for direction from the administrator."
<snip>
Refunds would present a heavy drain on the airline's hollowed-out pockets, but holders of travel vouchers would be considered as unsecured creditors in a queue of over 10,000 credits owned close to $7 billion.
<snip>
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Old May 12, 20, 2:42 pm
  #21  
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Link (12 May 2020) Executive Traveller ----->Virgin Australia administrators: no refunds, just 'conditional' credit

Virgin Australia’s administrators intend to offer ‘conditional credits’ to customers on cancelled flights in place of cash refunds or regular travel bank vouchers, but can't guarantee they would be honoured by the airline’s new owners.The credits would also have a strict use-by date: they'd be valid only while Virgin Australia remains in administration.

It would be at the discretion of any new owner of Virgin Mk II as to whether any outstanding conditional credits would remain valid.
<snip>
They may also help conserve the airline's all-important cash reserves, as Virgin is “experiencing an increasing number of (credit card) chargebacks” as would-be passengers on cancelled flights are now resorting to their credit card company's refund mechanism instead of relying on the airline.
<snip>
Australian consumer law taken a back step?
(emphasis added)
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Old May 12, 20, 5:02 pm
  #22  
 
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Originally Posted by Mwenenzi View Post
Link (12 May 2020) Executive Traveller ----->Virgin Australia administrators: no refunds, just 'conditional' credit


Australian consumer law taken a back step?
(emphasis added)
absolutely & obviously. VA is in admin. What part of this don't you understand ? If the administrators do a good job, they will get rid of all leases & lease payments. Ticket holders are unsecured creditors.

Any creditors maybe shouldn't have given virgin credit, in the 1st place.

There has been a change, obviously, in that chargebacks are not automatic.

That said, if V2 does make it, the new owners would be crazy not to offer virgin ticket holders some sort of credit.

Not matter what new owners might say, the perception would be that V2 is somehow related to virgin. Bad PR.
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Old May 13, 20, 4:50 am
  #23  
 
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Any idea how this will work for cancelled redemption bookings?
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Old May 13, 20, 8:58 pm
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Originally Posted by Speedbird676 View Post
Any idea how this will work for cancelled redemption bookings?
Can you be more specific? If it is Velocity, you can get your points back but of course no use for them at the moment.
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Old May 13, 20, 9:10 pm
  #25  
 
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Originally Posted by Speedbird676 View Post
Any idea how this will work for cancelled redemption bookings?
You'd be entitled to get your points back, although of course what practical value they have under Virgin 2.0 remains to be seen.

In theory you should also be entitled to a refund of the 'fees & surcharges' component, but that'd likely land in your lap as one of these 'conditional credit' vouchers - despite the Govt agreeing to waive fees for airlines as the first part of its relief package some months back - so I'd suggest looking into a chargeback via your credit card based on non-delivery of service.
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Old May 13, 20, 11:12 pm
  #26  
 
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Originally Posted by CPMaverick View Post
Can you be more specific? If it is Velocity, you can get your points back but of course no use for them at the moment.
I cancelled a Velocity booking on Delta under the “we’re waiving cancellation fees” policy and received a response that currently no refunds or travel credits are being issued due to the administration.

I have received neither the points or taxes back.
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Old May 14, 20, 12:52 am
  #27  
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Originally Posted by Speedbird676 View Post
I cancelled a Velocity booking on Delta under the “we’re waiving cancellation fees” policy and received a response that currently no refunds or travel credits are being issued due to the administration.
I have received neither the points or taxes back.
Is the Delta flight cancelled or operating?
As above consider a credit card charge back
{I have some Ansett ff points if you want them}
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Old May 14, 20, 5:19 am
  #28  
 
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Originally Posted by Mwenenzi View Post
Is the Delta flight cancelled or operating?
As above consider a credit card charge back
{I have some Ansett ff points if you want them}
The flight is still operating at present.

It is a US domestic flight so only $35 in taxes. I won't lose too much sleep over it but I will initiate a charge back if it does get cancelled or I haven't been refunded by the date of the flight.

The information on the Virgin Australia/Velocity sites is very inconsistent. On this page (https://travel.virginaustralia.com/a.../change-cancel) it tells you that you can cancel redemption flights up until 30th June and they'll waive the cancellation fee.
The link takes you to this page (https://experience.velocityfrequentf...cancel-booking) which says you can cancel redemption flights up until 30th September and they'll waive the cancellation fee.



Nowhere do they tell you that due to being in administration they won't be refunding anything. That only comes by email after you've submitted the form.
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Old May 14, 20, 3:52 pm
  #29  
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Originally Posted by Speedbird676 View Post
I cancelled a Velocity booking on Delta under the “we’re waiving cancellation fees” policy and received a response that currently no refunds or travel credits are being issued due to the administration.

I have received neither the points or taxes back.
With Delta retiring the 777 we won’t be seeing them back to Sydney anytime soon, I wonder how that will affect Virgin in the future.
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Old Jun 9, 20, 5:03 pm
  #30  
 
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Virgin Group may pay $35-70mn to keep Virgin Australia stake

Richard Branson's Virgin Group wants to invest between AUD50 to 100 million Australian dollars (USD35-70 million) in insolvent Virgin Australia Holdings in order to retain a minority stake alongside whoever wins the bidding for it when it emerges from administration, sources have told The Sydney Morning Herald.

Virgin Group owned 10% of the Australian company when the coronavirus pandemic grounded the Virgin Australia, Virgin Australia International, Virgin Australia Regional, and Tigerair Australia fleets. It entered voluntary administration on April 21, owing around AUD6.8 billion (USD4.6 billion) to creditors.Virgin Group has said it wants to play a role in the carrier's future but has declined to specify whether this would take the form of a shareholding or merely maintaining the Virgin brand and associated licensing fees, which have been worth around USD15 million a year.
https://www.ch-aviation.com/portal/n...ustralia-stake
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