It’s been speculated for nearly two months, and now Virgin Australia has finally confirmed that the co-investor of its Velocity Frequent Flyer program is looking to offload its stake.
In a statement to shareholders, Virgin Australia said Connectivity Pte Limited (Affinity Equity Partners) is seeking an exit from its roughly 35 per cent investment in Velocity Frequent Flyer.
Virgin said Affinity has requested that various exit options for the sale of its stake be considered.
“The group remains committed to the long-term growth of the Velocity business and expects to remain the majority investor in Velocity,” Virgin said.
“There is currently no certainty about the terms or timing that any such exit transaction could take.”
The announcement comes after reports on The Australian Financial Review and The Sydney Morning Herald surfaced in May that Virgin and Affinity were looking for potential buyers for the rewards program, which is estimated to be worth more than $1.5 billion.
At the time, a Virgin spokesperson declined to comment on the reports when contacted by Travel Weekly, dismissing them as merely speculation.
Virgin’s frequent flyer program has been in the headlines a lot lately over its tit for tat with rival Qantas, which you can read all about on Travel Weekly here, here and here.
