Virgin Australia has assumed full ownership of Velocity Frequent Flyer after completing its acquisition of Affinity Partners’ minority stake in the lucrative business.
The aviation group announced its intention to buy back its 35 per cent investment of the frequent flyer program from Affinity for $700 million in September, following months of speculation.
The deal reiterates just how valuable frequent flyer program is to Virgin, having delivered earnings growth of 13 per cent to $132.4 million in an otherwise dour FY19 for the group, which led to the announcement of 750 job cuts.
The buyout deal with Affinity values the business at $2 billion, according to multiple media reports.
