Originally Posted by
Blackout
Taken from news.com.au
Virgin Australia customers owed refunds to be offered ‘conditional credits'
Quote:
’"He said the administrators were considering whether Virgin Australia would need interim funding to allow the business to keep operating until a second meeting of creditors, which they propose to hold in August.
The administrators are seeking permission to issue conditional credits to customers that had booked flights cancelled due to the pandemic which could be honoured by an acquirer, Mr Strawbridge said.
“Potential buyers may be motivated to extend these conditional credits as part of any restructuring or recapitalisation of the Virgin Companies’ business for the purposes of maintaining and enhancing the customer goodwill associated with the Virgin Companies,” he said.
He added the airline is seeing a rise in credit card charge-backs from customers seeking refunds. There have been around 340,000 requests for refunds after cancelling 65,000 flights between March 1 and April 30.
That is a potential drain on cash it holds in accounts.
The travel credits will be valid for the administration period, and customers who have not claimed or used the credits during the process are "unlikely to receive a 100 per cent refund on any restructuring or upon liquidation".
Mr Strawbridge said the credits would preserve goodwill in the airline and make it more attractive to potential buyers."
Frankly I'm surprised that that story isn't generating more widespread interest/concern, particularly the
The travel credits will be valid for the administration period, and customers who have not claimed or used the credits during the process are "unlikely to receive a 100 per cent refund on any restructuring or upon liquidation.
bit.
If I were one of the thousands of Virgin customers, sorry, guests, holding a travel credit I'd be extraordinarily pi55ed off. I've been done out of a refund at a federal court hearing that I had no representation at such that I'm now effectively being treated as an unsecured creditor but with no representation on the Committee of Inspection.
As to the '
travel credits will be valid for the administration period', how much flying and on what routes is likely to occur during 'the administration period'? The Administrator is effectively rissoling the customers here and it's all gone under the radar.
And it's made all the more galling knowing that PS is still trousering twenty large a week ... to do what exactly?