Virgin Australia Velocity Frequent Flyer increases fees & transfers

Virgin Australia's Velocity Frequent Flyer scheme has undergone a major shakeup, with fees of up to $460 for redemptions, and a much more expensive rate for Singapore Airlines transfers.

Velocity, Virgin Australia's Velocity Frequent Flyer scheme, it to introduce a new fee for redemptions. This could add up to $460 AUD to the cost of a redemption.

Flights between Australia and Los Angeles are to be slugged with a $230 fee for a one-way flight in business class. Redemptions on Delta are also to be hit. Premium economy gets a fee of $140, and economy class $60.

Australia to Hong Kong will have a fee of $50 in business class and $35 in economy per one-way flight. All other international routes (except New Zealand) has a charge of $50 in business class and $25 in economy one way.

Domestic flights within Australia and trans-Tasman flights will now have an extra fee of $5.50 in business class and $3.50 in economy.

Etihad flights in business class will still attract a fee of $300 per flight when using Virgin Australia Velocity points.

Singapore Airlines will also reduce the 'exchange rate' to Singapore Airlines KrisFlyer miles from Virgin Australia Velocity frequent flyer points to 1.55:1, compared to the current ratio of 1.35:1.

Converting Velocity points to KrisFlyer miles meant that passengers could book all Star Alliance flights using Velocity points, and was seen as a key part of the frequent flyer offerings.

However, Velocity status credits are to be increased to a minimum of seven status credits per one-way flight instead.

The change follows Virgin Australia's dramatic split with Air New Zealand, which has also seen the Australia carrier decamp from using Air New Zealand facilities, and plan to open its own lounges under the My Lounge brand, as Lux-Traveller has reported.

You will no longer be able to earn or redeem Velocity points on Air New Zealand flights, and Velocity status will give no benefits when flying Air New Zealand, and will lose access to all Air New Zealand lounges, previously one of the biggest perks.