Virgin Miles if they go Bust !

[Rebelrebel]

Hmm really starting to worry now with the news about Gatwick. Sad news for all those jobs and those with flights booked too. We've save 400k miles for a trip of a life-time and we may have to forget it . I appreciate there are a lot worse things happening in the world at the moment but this was such a big thing for us, do I lose the value and change to Hilton or keep my fingers crossed and hope the miles are ok,it is such a gamble .

[dippy lippy]

Originally Posted by Rebelrebel

Hmm really starting to worry now with the news about Gatwick. Sad news for all those jobs and those with flights booked too. We've save 400k miles for a trip of a life-time and we may have to forget it . I appreciate there are a lot worse things happening in the world at the moment but this was such a big thing for us, do I lose the value and change to Hilton or keep my fingers crossed and hope the miles are ok,it is such a gamble .

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I'm sitting on nearly 800k - I'm holding on at the mo as there are other airlines that they can be used on. I've no idea on the legality of these matters but I cant imagine they would all suddenly become completely worthless - or am I simply being naïve?

[Rebelrebel]

Originally Posted by dippy lippy

I'm sitting on nearly 800k - I'm holding on at the mo as there are other airlines that they can be used on. I've no idea on the legality of these matters but I cant imagine they would all suddenly become completely worthless - or am I simply being naïve?

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I really don't know, I'm thinking along the lines of shops that have closed and gift cards have become obsolete however I may be wrong

[eaglesrest]

Originally Posted by Rebelrebel

Hmm really starting to worry now with the news about Gatwick. Sad news for all those jobs and those with flights booked too. We've save 400k miles for a trip of a life-time and we may have to forget it . I appreciate there are a lot worse things happening in the world at the moment but this was such a big thing for us, do I lose the value and change to Hilton or keep my fingers crossed and hope the miles are ok,it is such a gamble .

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It is sad news, but restructuring gives them a much better chance of survival.

Hopefully, when the dust has settled and demand increases again, they can take the staff back on.

[dippy lippy]

Last paragraph of this article (copied and pasted from head for points) mentions Virgin flying club

Virgin Atlantic appoints advisors to manage a bankruptcy process” (Sky News)
9 May 2020 By Rob 112 Comments
Links on Head for Points may pay us an affiliate commission. A list of partners is here.

Sky News reported this afternoon that Virgin Atlantic has appointed restructuring specialists Alvarez & Marsal to oversee a potential pre-pack insolvency of the airline.
This does not necessarily mean that administration is inevitable, and as Sky points out it is a legal requirement of the directors to prepare for such an eventually if it looks like it may be necessary.
Because of the way that pre-pack administrations work, this would NOT mean the end of the airline.
Under a pre-pack, the airline would declare itself bankrupt and would be immediately sold to a pre-arranged buyer. This buyer is highly likely to be Sir Richard Branson, potentially with new partners.

The new shareholders would acquire the assets of the existing business but not its liabilities. The airline would therefore emerge debt free. The process would also allow it to shed leases on aircraft which were no longer required.
One issue, however, would be the potential loss of its Heathrow Airport landing and take-off slots. Many people have forgotten that many of Virgin’s slots are secured against a £220 million loan and would be forfeit if that loan was not repaid.
It is possible that any announcement this weekend to force visitors to the UK into 14 days quarantine, including returning UK citizens, could be a trigger for administration.
Changes to UK insolvency proceedings as part of the response to coronavirus allow the airline to continue trading whilst going through a restructuring without the directors being personal liable for the debt. This increases the chances that the airline would be able to emerge intact in some form.
Virgin Flying Club should emerge unscathed, especially as your miles are legally owned by Virgin Red / Virgin Group Loyalty Company. Virgin Atlantic is not a shareholder in this business, which is owned jointly by Virgin Group and Delta Air Lines. However, in reality your miles will have little value if the cannot be redeemed for flights as it is unlikely that Virgin Red has enough funding to pay for redemptions with third parties.

[eaglesrest]

If and when the 14 day self-isolation is introduced, and if it does not have a realistic exit date/goal, then a pre-pack administration would be the sensible option.

Quite what the end-game picture will look like (slots, airports, schedules) and how it will impact existing customers remains to be seen.

Ideally the PM announces the 5-level plan today. If we are at level 4 now, and moving to level 3, I'm guessing level 3 will include the self-isolation protocols.

Would be really useful to understand if those protocols will still apply in say Level 2 or even Level 1 (god no!). Also useful to understand what the criteria will be when moving between the levelled.

At least then the travel industry will be able to risk assess the impact and estimate timescales.

[Ritz]

Virgin miles isn't owned by VA it was moved about 18 months to Virgin Red, which is the reward arm of Virgin group.
So if VA do go bust it doesn't mean that miles go certainly not immediately that will depend how Virgin group wants to run its rewards.