VIRGIN Australia is introducing new “carrier charges” in connection with tickets booked using Velocity frequent flyer points, with the move effective for bookings from 01 Jan 2019.
The change mirrors long-standing practice by Qantas, which has for years imposed additional fees on redemption bookings.
In an email to Velocity members overnight Virgin said the changes were “in line with local industry practice,” with Velocity still remaining “very competitive and well below the price charged by our competitors”.
The carrier charge will apply to all Virgin Australia operated flights as well as Delta Air Lines operated and marketed services between Sydney and Los Angeles.
The carrier charge can be paid with points or a combination of points & cash, and will be applied during the booking process.
The fees vary depending on route, with the biggest impost being a $230 one way charge for Business class reward flights between Australia and LA, while Premium Economy will cost $145 and Economy $60 on LAX routes.
For domestic redemptions the carrier charge is $5.50 in Business class and $3.50 in Economy.
By contrast, Qantas domestic carrier charges are currently $14, while a Business class Australia-US points flight costs $335 in carrier charges one way.
MEANWHILE Virgin also announced changes to its loyalty relationship with Singapore Airlines, with the conversion rate between the programs changing to 1.55 Velocity points=1 KrisFlyer Mile on 01 Jan, reflecting the “differing reward program currencies” each airline program operates with.
VA also confirmed Air NZ would no longer be a Velocity airline partner effective from 28 Oct.

Source: traveldaily