Virgin Australia extends flight credits for Kiwis - but there’s still a catch

Virgin Australia used to fly 70 times a week between NZ and Australia. Photo / Supplied

Virgin Australia has extended future flight credits to the end of the year but there’s little hope of New Zealand-based passengers being able to use them from anywhere but Queenstown.

The airline collapsed three years ago when the pandemic hit, leaving thousands of passengers with tickets they couldn’t use until it started flying again.

The airline is not disclosing how many New Zealand passengers are still stranded with credits they will struggle to use.

Before the pandemic Virgin Australia had about 18 per cent of the transtasman market but is no longer serving New Zealand’s main centres.

While not publicly commenting on any return to main New Zealand cities, Virgin Australia says it has no new announcements relevant to this country.

But it is “assessing network and routes in-line with demand, and adjust services accordingly”.

The airline – whose private equity owners Bain Capital want to float on the Australian sharemarket later this year - did not provide details of how many Kiwi customers still have credits.

“This information remains confidential and we are not in a position to disclose those details,” the airline said.

Instead, it said it was ‘’delighted’' to return to Queenstown, with the resumption of services there last year.

It started flights to Queenstown from Sydney and Brisbane on November 2, and Melbourne and Queenstown the next day and is operating as often as daily on each route.

The airline has just restored flights from Australia to Vanuatu and Samoa in addition to Bali and Fiji services but is concentrating its resources on the lucrative Australian domestic market as it builds up for relisting on the ASX.

Consumer NZ chief executive Jon Duffy said it was good that Virgin extended the expiry date of their ‘future flight’ credits.

‘’However, given they’re only operating limited flights between New Zealand and Australia, and they’re limiting the number of seats that can be booked using these credits, it may make it difficult for consumers to use their credits.’’

Virgin Australia said future flight credits were issued to customers who had bought flights before it entered voluntary administration on April 20 in 2020 where those flights were cancelled.

Those passengers were issued with credits to ensure they retained the full value of their bookings.

More competition before the pandemic meant cheaper prices across the Tasman. Photo / Grant Bradley

It said it had extended the date passengers can book tickets using credits for the third time, from January 31 this year to December 31.

‘’It means guests involved will have had more than three and a half years to use their credits.’’

Future flight credits can be used to make bookings on all Virgin Australia-operated flights, and selected flights into and out of Brisbane operated by alliance airlines on behalf of Virgin Australia.

“However, the number of seats is limited and may sell out quickly, so we encourage guests to book as early as possible to avoid disappointment.”

Consumer NZ’s Duffy recommends anyone with a ‘future flight’ credit to consider booking as far as possible in advance.

“If they’re unable to get a booking with their credit, they should contact the airline and ask what they can do for them.”