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
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