This AFR article also pretty damning, and there is no way PS would
not have known about this, so here we have the airline on one hand saying Velocity is independent and not under threat and telling Velocity members they are protected by a trustee, when in the weeks prior to that and the airline crashing into administration, it pulled $200 million out the Velocity trust fund presumably just to stay solvent and keep flying? That's $200 million which the Velocity trust fund will not see again, they're now just one of 10,200 credits clawing for $7 billion, they'll get cents in the dollar, so that's almost $200 million of Velocity purchasing power gone.
The trust set up to protect Velocity Frequent Flyer members lent up to $200 million to Virgin Australia, positioning the company as a creditor to the failed airline and raising questions about how much cash is actually backing the loyalty scheme’s points.
Concerns about the cash backing for the loyalty scheme’s 10 million members arise as the Virgin administrator, Deloitte, estimates that the failed airline owes more than $6.8 billion to 10,000 creditors, much more than the $5.3 billion of interest-bearing liabilities shown in the airline’s accounts.
https://www.afr.com/companies/financ...0200422-p54mfj