Conditional Credits | Coronavirus Customer Hub

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Conditional Credits

Because Virgin Australia is in voluntary administration, our ability to provide you with a normal travel credit or a refund has been impacted. However, the administrators have arranged for a conditional credit (to the same value as the amount paid for your original ticket including ancillaries and taxes, but excluding fees) to be provided to you for use on domestic flights operated by Virgin Australia Airlines or Virgin Australia Regional Airlines during the period of administration. 

Initially, Conditional Credits will be valid for travel during the period of administration; however, depending on how the business is structured in the future, a new owner may honour these credits after administration. 

If you choose not to use the Conditional Credit, your rights will depend on the outcome of the administration process. At this stage, it is expected that this will be finalised by, at the latest, mid-August, although this date may change. 

 Tigerair Australia customers may also use a Conditional Credit to make a booking if:

  • they have been provided with a Conditional Credit for a booking made on or before 20 April that was cancelled for any reason and were not issued a credit or a refund prior to Tigerair entering into administration; or

  • they elect to transfer their existing Tigerair flight credit to a Conditional Credit because they have a need to travel during the administration period. 

 

Conditions of use

The Conditional Credit can be used for travel on Virgin Australia or Virgin Australia Regional Airlines flights (including flight extras such as seat upgrades and extra baggage allowance) during the administration period (at this stage, approximately 15-August). You can find out more about your rights if you do not use your Conditional Credit in our FAQs.

We are unable to offer use of the conditional credit on flights with Virgin Australia codeshare partners or for any other good or service other than flights.

The Conditional Credit is not transferrable and can only be used for passengers who were on the original booking, although not all passengers need to be flying.

The amount of your Conditional Credit is equal to the amount you paid for your original booking (including ancillaries and taxes, but excluding  fees). Any amount you don’t use remains valid for use during the administration period. 

If you use your conditional credit as payment for a new flight (in full or in part)  and the new flight is subsequently cancelled, by you or Virgin Australia, we will offer you a Conditional Credit, regardless of which type of fare you booked. 

Eligibility for a Conditional Credit

You are eligible for a Conditional Credit if you have a cancelled booking with Virgin Australia or Tigerair that was made on or before 20 April 2020, and you were not issued with a credit or refund prior to Virgin Australia and Tigerair entering into administration. You are also eligible for a Conditional Credit if you made a booking using a Conditional Credit to pay for the whole or partial value of the booking, and your new flight is cancelled by you or Virgin Australia.

To understand your eligibility, see the chart below.

 

If your booking has not been cancelled (by you or Virgin Australia)

If you booked on or before 20 April 2020 and still have an upcoming booking but no longer wish to fly, it’s important that you complete our cancellation form prior to your departure in order to be eligible for a Conditional Credit.

Frequently asked questions

We understand that it may be difficult to understand your entitlements during this time, so we've prepared the below FAQs to assist.

Can I get a refund for a cancelled flight?

As Virgin Australia Airlines, Virgin Australia International Airlines, Virgin Australia Regional Airlines and Tigerair Australia (the Virgin Australia Group entities) are in voluntary administration, we are not able to issue any refunds for cancelled flights if your ticket was purchased before on or before 20 April 2020. 

If your ticket was purchased on or after 21 April 2020, the normal fare rules and policies applicable to your booking will apply.
 

Can I receive a credit if I can’t get a refund?

If you purchased your ticket on or before 20 April 2020, you are eligible for a conditional credit, which can be used to book other flights with Virgin Australia Airlines or Virgin Australia Regional Airlines, for travel during the administration process. As the name suggests, there are specific conditions that apply to the conditional credit, which you can read about above. 

How do I use my conditional credit?

You do not have to do anything with your conditional credit until you want to make a booking.

If your original booking was made directly with Virgin Australia and you know the new date you would like to book using your conditional credit, please contact our Guest Contact Centre on 13 67 89 (if calling from within Australia) or +61 7 3295 2296 (if calling from outside Australia) to book. 

If your original booking was made directly with Tigerair Australia and you know the new date you would like to book using your conditional credit, please email customerassistance@tigerair.com.au to request a conditional credit and include the following details: 

  • full name

  • preferred contact phone number 

  • Tigerair Australia booking reference

  • new travel date to book using your conditional credit.

If your original booking was made with a travel agent, you will need to contact them directly to use your conditional credit. 

You do not have to use the conditional credit. See below for information about your rights if you don’t use your conditional credit. 
 

What are the specific conditions that apply to my conditional credit?
  • Flights can be booked for domestic travel with Virgin Australia Airlines or Virgin Australia Regional Airlines during the period of administration. Flight bookings using conditional credits are subject to the availability of flights, and if applicable, payment of any fare differences.

  • The conditional credit is non-transferable and cannot be used in conjunction with Velocity Frequent Flyer Points or travel credits of another person.

  • Normal Conditions of Carriage and fare rules will apply to any fare you book using your conditional credit, except that the only remedy we are able to offer at this time if your flight is cancelled is another conditional credit. However, please note that some fare inclusions are currently varied as a result of the COVID-19 pandemic, including the onboard catering offering. Please see our website for more information.

Will the conditional credit be for the full value I paid for my original fare or holiday package?

In the case of a flight, the credit will be for the same amount paid for the original ticket, comprising the cost of the fare for the flight and taxes (excluding fees), and the amounts paid for ancillary services that were to be provided by the airline.  

In the case of a holiday package, the conditional credit will be for the equivalent amount paid for the holiday package, less any cancellation fees imposed on your booking by suppliers.

Will I also receive the value of an upgrade if I purchased this on top of the original fare value?

Yes. The conditional credit will include any additional payments made for an upgrade. 

How long will the administration process take?

The administration process is expected to be finalised by mid-August, but this date is subject to change. 

Why can’t I use the conditional credit after the administration process ends?

Initially, conditional credits will be valid for travel during the period of administration; however, dependent on how the business is structured in the future, a new owner may honour these credits after administration.

Can I use the conditional credit with one of Virgin Australia’s codeshare partners?

The conditional credit can only be used for services operated by Virgin Australia Airlines or Virgin Australia Regional Airlines. 

What happens if the flight I booked using my conditional credit is cancelled?

If your flight is cancelled, Virgin Australia will endeavour to reaccommodate you onto the next available service. 

Should the reaccommodation service not be suitable, you will be offered another conditional credit that can be used for travel during the voluntary administration period. 

Can I make changes to a flight booking made using my conditional credit?

If you wish to make a change to your booking, and this change is permitted by the conditions of your fare, you can request the change be made by contacting the Guest Contact Centre on 13 67 89 (if calling from within Australia) or +61 7 3295 2296 (if calling from outside Australia). Information about your fare rules can be found on the Virgin Australia website.

What happens if I don't use the conditional credit, or due to travel restrictions, I can’t use it?

You do not have to use the conditional credit.

If you do not use the conditional credit, your rights as an unsecured creditor are preserved and what happens with your conditional credit will depend on the outcome of the administration process. Depending on how the business is structured in the future, a new owner may honour these credits after administration.  More information about being a creditor can be found here: www.deloitte.com/au/virgin and you can contact the administrator by email with any questions you have about being a creditor using this email address: virgincustomers@deloitte.com.au.

I previously requested, or my refund request was approved, by Virgin Australia/Tigerair Australia/Virgin Australia Holidays before it went into administration, but I still haven’t received my refund. What happens now?

Unfortunately, due to the Virgin Australia Group entities now being in voluntary administration, no refunds will be issued; however, you may be eligible for a conditional credit if you purchased your ticket or holiday package on or before 20 April 2020. 

I have already been provided with a refund/credit/compensation/reaccommodation. Am I also eligible for a conditional credit?

No. If you have already been provided with a refund, credit, reaccommodation on another flight, another holiday package or alternative compensation (including any amounts received from your travel insurance provider), you are not eligible to receive a conditional credit. 

Exception for Tigerair customers with issued flight credit: If you are a Tigerair Australia customer and have been issued with a flight credit that has not yet been used, you may be eligible to transfer your flight credit to a conditional credit which can be used to book other flights with Virgin Australia Airlines or Virgin Australia Regional Airlines, for travel during the administration process.
 

I have requested a refund and don’t want a conditional credit. What are my rights?

Your rights under the Australian Consumer Law and any law applicable to your booking are not extinguished by the administration. However, Virgin Australia and Tigerair’s ability to provide a refund,  a normal travel credit or other remedy is impacted by the administration.

The administrator has arranged for impacted customers to be provided with a conditional credit which enables customers who want to use the value of their original booking to travel on a Virgin Australia flight during the administration period. 

If you do not use the conditional credit, your right to stand as an unsecured creditor in the administration remains preserved.

You are entitled to submit a proof of debt claim to the administrators and take a position as an unsecured creditor if you wish. However, you will be no worse off by waiting until the end of the administration period to see what the outcome could be for conditional credit holders (which may be better than those available for unsecured creditors). Please note that if your proof of debt claim is accepted by the administrator, you will not be able to use your conditional credit.

We will keep you informed on the outcomes available to our customers. In the event you elected to retain your conditional credit but are subsequently required to submit a proof of debt claim, the administrator will advise of this requirement at that point in time. 

More information about being a creditor can be found here: www.deloitte.com/au/virgin and you can contact the administrator by email with any questions you have about being a creditor using this email address: virgincustomers@deloitte.com.au.
 

Are you allowed to offer a conditional credit rather than provide me with a refund?

Your rights under the Australian Consumer Law and any law applicable to your booking are not extinguished by the administration. However, Virgin Australia and Tigerair’s ability to provide a refund, a normal travel credit or other remedy is impacted by the administration.

However, the administrator has been granted approval by the Federal Court to offer conditional credits throughout the administration process, which provides an option for our guests that is above what they may ordinarily be entitled to during the administration process. 

The conditional credit gives you an opportunity to use the value of your original ticket towards a flight during the administration period, which would not otherwise have been possible.
 

What happens to my conditional credit if the voluntary administration process is not successful and the Virgin Australia Group entities are liquidated?

You would be considered an unsecured creditor. More information about being a creditor can be found here: www.deloitte.com/au/virgin and you can contact the administrators by email with any questions you have about being a creditor: virgincustomers@deloitte.com.au.

I have travel credits that were issued prior to the Virgin Australia Group entities going into voluntary administration. Are these still valid?

Existing travel credits issued by Virgin Australia Airlines, Virgin Australia International Airlines, Virgin Australia Regional Airlines or Tigerair Australia remain valid and will be honoured in line with the standard terms and conditions applicable to that credit when it was issued. 

Exception for Tigerair customers with issued flight credit: If you are a Tigerair Australia customer and have been issued with a flight credit that has not yet been used, you may be eligible to transfer your flight credit to a conditional credit which can be used to book other flights with Virgin Australia Airlines or Virgin Australia Regional Airlines, for travel during the administration process.

Where can I find more information?

More information about conditional credits and other information for creditors is available here: www.deloitte.com/au/virgin.

 If you have a question about the administration process, please email  virgincustomers@deloitte.com.au.