The Champagne Mile founder Adele Eliseo has called on Virgin Australia to refund unused Covid credits, with just days to go before deadline, arguing the airline’s own figures suggest a significant portion of the remaining $93 million may never be recovered by customers.
Her stand follows Shadow Transport Minister Senator Bridget McKenzie calling on the carrier last week to ‘do the right thing’ by their customers and return Covid credits which were set to expire on June 30. Flight credits not used by the end of the month will be absorbed into Virgin Australia’s bottom line, a decision Senator McKenzie described as “unconscionable”. While the deadline booking remains, Virgin Australia pushed back its Covid credit travel window to May 2027 following renewed criticism.
But Eliseo says while 90 per cent of Covid credit holders are dormant their accounts should be refunded.
“Virgin says more than 90 per cent of the remaining credit holders have been inactive with the airline for over three years,” she said. “This is a remarkable figure, because it suggests a significant amount of the remaining $93 million may never be recovered by the customers it belongs to.
“After more than three years of inactivity, it’s reasonable to ask how many of these credit holders have since passed away, become seriously ill, lost capacity or are otherwise no longer in a position to travel.
“Covid credits represent tangible monetary value. Both Qantas and Virgin Australia already have established processes for dealing with the value of points stored in deceased frequent flyer accounts.”
“What recovery pathways exist for customers who have since passed away, lost capacity or are otherwise no longer able to manage their own affairs? Consumers deserve clarity about how that value can be recovered by estates, family members or authorised representatives.”
Extended deadline
On Virgin’s move to extend the deadline and a call for blanket refund she said customers who miss the 30 June deadline will still stand to lose their money.
“Rather than allowing these balances to expire, Virgin should commit now to refunding any credits that remain unused after 30 June,” she said.
“Many travellers accepted the conversion of their cash into travel credits during Covid because they had little choice. They shouldn’t be pressured into booking unwanted Virgin Australia flights five years later simply to avoid losing their money.”
On the comparison with Qantas, Eliseo said the national carrier had bowed to pressure long ago and created a clearer path for redemptions and refunds.
“Australians made it clear they expected a fairer outcome on Qantas Covid credits,” she said. “Qantas has since established a clear consumer benchmark by allowing customers to reclaim unused Covid credits as a refund with no expiry date.
“Virgin’s travel-only redemption model and hard expiry date are increasingly out of step with consumer expectations.”
In the past, Virgin Australia has pointed out that more than 90 per cent of affected customers have already redeemed their credits, and that the expiry date has been extended four times over four years.
Virgin Australia CEO Dave Emerson has said Virgin Australia had focused on making COVID credits simple and flexible to use since they were first introduced.
“Over the past four years, more than $1 billion in Covid credits have been redeemed by our customers, helping them reconnect with family and friends, take long-awaited holidays, and travel for work,” he said. While credits can be used by friends and family, not just the original booker, they are also valid across Virgin-operated flights as well as partner airlines.
But Eliseo argues it’s not so easy.
“Virgin has consistently argued that these credits are easy to use, yet if these credits were genuinely easy to find and redeem, it’s difficult to explain why so much value remains unclaimed in the midst of a cost-of-living crisis.”
