Virgin Australia buys back 35% stake in frequent flyer programme

Darren Wood
By Darren Wood September 16, 2019 09:34

Virgin Australia buys back 35% stake in frequent flyer programme

Virgin Australia has entered into an agreement to buy back the 35% of its Velocity loyalty programme for A$700 million ($481 million) which it does not currently own from private equity firm Affinity Equity Partners.

Velocity is Australia’s second-largest airline loyalty program, behind rival Qantas Airways, which has 9.8 million members as of June 30. 

The deal, which values the stake at more than twice the A$335 million price paid by Affinity in 2014, remains subject to funding and regulatory approval. 

Velocity was revealed to be a profitable unit for Virgin, reporting earnings before interest and tax of A$122 million for the year to 30 June, with a revenue rise 39% to A$411 million.

Darren Wood
By Darren Wood September 16, 2019 09:34