When 71-year-old Karen Lancaster booked a trip to Los Angeles in 2019, she could never have imagined that a year later, she would be left fighting for a refund and still unable to meet her family.

Karen, who is vision impaired and relies on a carer when travelling, made the difficult decision to drain her entire superannuation account to pay for business class flights to visit her son and daughter-in-law and meet her 21-year-old granddaughter for the first time.

‘[My son has] had leukaemia; it might be my one and last chance to see him, and I've never met my granddaughter; she'll be 21 in February,’ she said.

‘I speak to her on the phone, but I've never met her person-to-person and the thought of just giving her a big hug… It's hard.’

Virgin Australia was one of the first major airlines in the world to go bust under the strain of COVID-19 travel bans. Credit: Shutterstock.

When the COVID-19 pandemic struck, and Virgin Australia faced financial troubles, Karen's plans fell apart. Her flights were cancelled, and despite her personal hardships, Virgin refused to refund her money.

Now, Ms Lancaster is at risk of losing around $15,000 in flight credits because Virgin doesn't allow customers to use these credits for new bookings with most partner airlines, except Alliance Airlines.

Virgin Australia reportedly reduced its international flight operations after being acquired by Bain Capital and coming out from administration in November 2020.

‘As part of the restructuring process, Bain Capital has disposed of the Boeing triple sevens and the Airbus A330s, which were the aeroplanes they were using for international routes and some domestic routes,’ said aviation analyst Geoff Thomas.

Ms Lancaster was initially informed that she could rebook her trip to Los Angeles with Virgin Australia once the borders reopened.

However, the situation changed, and instead, they offered her credits that could be used for travel within Australia, New Zealand, Christmas Island, Bali, Fiji, or the Solomon Islands.

Unfortunately, these credits are useless to her, as she only wanted to travel to Los Angeles to meet her family.

‘No, why would I want to go anywhere else? I'm blind,’ she said.

‘I can't see what's around me, I cannot enjoy it. I only want to go to America to see my family; that's all I want. I don't want anything else.’

In a letter sent to Ms Lancaster, Virgin Australia explained that during the restructuring process managed by Deloitte, it was determined that bookings made before the airline went into administration could not be refunded.

The funds had to remain with the company to ensure its future viability.

‘The new Virgin Australia business does not hold any of the funds customers paid for these bookings,’ the company said in a statement.

‘We are committed to helping customers impacted by flight cancellations, and we have extended the expiry date for Future Flight Credits multiple times in recognition of the challenges COVID posed to travel. These credits will expire on 31 December 2023, over three years after they were issued.’

CHOICE Chief Executive Alan Kirkland accused the airline of using legal technicalities to avoid refunding customers for services they can no longer provide, saying: ‘Virgin should be treating this like a moral issue, not a legal issue.’

He said he believes that Virgin should approach this matter from an ethical standpoint and not just a legal one. He hopes that public pressure will lead Virgin to change its policies, much like Qantas did in response to customer outrage.

Ms Lancaster has exhausted her savings and superannuation on Virgin flights and is left without financial resources.

‘I feel very much as if I'm not a second-class citizen but a third or fourth. That I've got no rights at all, that anybody can do what they like because I have a disability,’ she said.

‘That makes me angry. I feel this is my last chance in a way that, if I don't do it now, I may not ever be able to do it.’

Key Takeaways

• Virgin Australia customers who booked tickets before the airline went into administration due to COVID-19 will lose their unused flight credits if they do not book new flights by year's end.
• Disability pensioner Karen Lancaster is set to lose around AU$15,000 in travel credits because the airline won't allow bookings with partner airlines, with the exception of Alliance Airlines.
• Ms Lancaster used her superannuation to purchase return business class tickets to Los Angeles to visit her family, and now cannot do so due to the airline cutting international routes due to restructuring from American private investment firm Bain Capital.

Members, we'd love to read about your experiences with Virgin Australia. Have you ever had less-than-pleasant experiences when flying with them in the past? If so, how did you and the airline deal with these situations? Please take a moment to share your stories with us in the comments below.

 

[MaccaMan]

Whilst we're on the topic of Virgin. Although they currently offer a very good term deposit rate, they are woeful to contact via every platform - phone, email, or via their app. SHOCKING! Long waits, conflicting information from different customer service representatives. Sent them an email almost a week ago (after trying to call them and receiving a audio recording, 'so we can respond faster, email us at......') still waiting for a response.
I'm moving away from Virgin for this very reason and trying ING...

 

[Rob44]

Qantas; Virgin. Lousy airlines and worse service. Singapore Airlines is the best one I have used.

 

[Phantom55]

When 71-year-old Karen Lancaster booked a trip to Los Angeles in 2019, she could never have imagined that a year later, she would be left fighting for a refund and still unable to meet her family.

Karen, who is vision impaired and relies on a carer when travelling, made the difficult decision to drain her entire superannuation account to pay for business class flights to visit her son and daughter-in-law and meet her 21-year-old granddaughter for the first time.

‘[My son has] had leukaemia; it might be my one and last chance to see him, and I've never met my granddaughter; she'll be 21 in February,’ she said.

‘I speak to her on the phone, but I've never met her person-to-person and the thought of just giving her a big hug… It's hard.’

View attachment 33731

Virgin Australia was one of the first major airlines in the world to go bust under the strain of COVID-19 travel bans. Credit: Shutterstock.

When the COVID-19 pandemic struck, and Virgin Australia faced financial troubles, Karen's plans fell apart. Her flights were cancelled, and despite her personal hardships, Virgin refused to refund her money.

Now, Ms Lancaster is at risk of losing around $15,000 in flight credits because Virgin doesn't allow customers to use these credits for new bookings with most partner airlines, except Alliance Airlines.

Virgin Australia reportedly reduced its international flight operations after being acquired by Bain Capital and coming out from administration in November 2020.

‘As part of the restructuring process, Bain Capital has disposed of the Boeing triple sevens and the Airbus A330s, which were the aeroplanes they were using for international routes and some domestic routes,’ said aviation analyst Geoff Thomas.

Ms Lancaster was initially informed that she could rebook her trip to Los Angeles with Virgin Australia once the borders reopened.

However, the situation changed, and instead, they offered her credits that could be used for travel within Australia, New Zealand, Christmas Island, Bali, Fiji, or the Solomon Islands.

Unfortunately, these credits are useless to her, as she only wanted to travel to Los Angeles to meet her family.

‘No, why would I want to go anywhere else? I'm blind,’ she said.

‘I can't see what's around me, I cannot enjoy it. I only want to go to America to see my family; that's all I want. I don't want anything else.’

In a letter sent to Ms Lancaster, Virgin Australia explained that during the restructuring process managed by Deloitte, it was determined that bookings made before the airline went into administration could not be refunded.

The funds had to remain with the company to ensure its future viability.

‘The new Virgin Australia business does not hold any of the funds customers paid for these bookings,’ the company said in a statement.

‘We are committed to helping customers impacted by flight cancellations, and we have extended the expiry date for Future Flight Credits multiple times in recognition of the challenges COVID posed to travel. These credits will expire on 31 December 2023, over three years after they were issued.’

CHOICE Chief Executive Alan Kirkland accused the airline of using legal technicalities to avoid refunding customers for services they can no longer provide, saying: ‘Virgin should be treating this like a moral issue, not a legal issue.’

He said he believes that Virgin should approach this matter from an ethical standpoint and not just a legal one. He hopes that public pressure will lead Virgin to change its policies, much like Qantas did in response to customer outrage.

Ms Lancaster has exhausted her savings and superannuation on Virgin flights and is left without financial resources.

‘I feel very much as if I'm not a second-class citizen but a third or fourth. That I've got no rights at all, that anybody can do what they like because I have a disability,’ she said.

‘That makes me angry. I feel this is my last chance in a way that, if I don't do it now, I may not ever be able to do it.’

Key Takeaways

• Virgin Australia customers who booked tickets before the airline went into administration due to COVID-19 will lose their unused flight credits if they do not book new flights by year's end.
• Disability pensioner Karen Lancaster is set to lose around AU$15,000 in travel credits because the airline won't allow bookings with partner airlines, with the exception of Alliance Airlines.
• Ms Lancaster used her superannuation to purchase return business class tickets to Los Angeles to visit her family, and now cannot do so due to the airline cutting international routes due to restructuring from American private investment firm Bain Capital.

Members, we'd love to read about your experiences with Virgin Australia. Have you ever had less-than-pleasant experiences when flying with them in the past? If so, how did you and the airline deal with these situations? Please take a moment to share your stories with us in the comments below.

if the directors of virgin reimbursed this poor woman who in good faith paid in advance for the flight, it would not cost anything (other than. the tax man)

When 71-year-old Karen Lancaster booked a trip to Los Angeles in 2019, she could never have imagined that a year later, she would be left fighting for a refund and still unable to meet her family.

Karen, who is vision impaired and relies on a carer when travelling, made the difficult decision to drain her entire superannuation account to pay for business class flights to visit her son and daughter-in-law and meet her 21-year-old granddaughter for the first time.

‘[My son has] had leukaemia; it might be my one and last chance to see him, and I've never met my granddaughter; she'll be 21 in February,’ she said.

‘I speak to her on the phone, but I've never met her person-to-person and the thought of just giving her a big hug… It's hard.’

View attachment 33731

Virgin Australia was one of the first major airlines in the world to go bust under the strain of COVID-19 travel bans. Credit: Shutterstock.

When the COVID-19 pandemic struck, and Virgin Australia faced financial troubles, Karen's plans fell apart. Her flights were cancelled, and despite her personal hardships, Virgin refused to refund her money.

Now, Ms Lancaster is at risk of losing around $15,000 in flight credits because Virgin doesn't allow customers to use these credits for new bookings with most partner airlines, except Alliance Airlines.

Virgin Australia reportedly reduced its international flight operations after being acquired by Bain Capital and coming out from administration in November 2020.

‘As part of the restructuring process, Bain Capital has disposed of the Boeing triple sevens and the Airbus A330s, which were the aeroplanes they were using for international routes and some domestic routes,’ said aviation analyst Geoff Thomas.

Ms Lancaster was initially informed that she could rebook her trip to Los Angeles with Virgin Australia once the borders reopened.

However, the situation changed, and instead, they offered her credits that could be used for travel within Australia, New Zealand, Christmas Island, Bali, Fiji, or the Solomon Islands.

Unfortunately, these credits are useless to her, as she only wanted to travel to Los Angeles to meet her family.

‘No, why would I want to go anywhere else? I'm blind,’ she said.

‘I can't see what's around me, I cannot enjoy it. I only want to go to America to see my family; that's all I want. I don't want anything else.’

In a letter sent to Ms Lancaster, Virgin Australia explained that during the restructuring process managed by Deloitte, it was determined that bookings made before the airline went into administration could not be refunded.

The funds had to remain with the company to ensure its future viability.

‘The new Virgin Australia business does not hold any of the funds customers paid for these bookings,’ the company said in a statement.

‘We are committed to helping customers impacted by flight cancellations, and we have extended the expiry date for Future Flight Credits multiple times in recognition of the challenges COVID posed to travel. These credits will expire on 31 December 2023, over three years after they were issued.’

CHOICE Chief Executive Alan Kirkland accused the airline of using legal technicalities to avoid refunding customers for services they can no longer provide, saying: ‘Virgin should be treating this like a moral issue, not a legal issue.’

He said he believes that Virgin should approach this matter from an ethical standpoint and not just a legal one. He hopes that public pressure will lead Virgin to change its policies, much like Qantas did in response to customer outrage.

Ms Lancaster has exhausted her savings and superannuation on Virgin flights and is left without financial resources.

‘I feel very much as if I'm not a second-class citizen but a third or fourth. That I've got no rights at all, that anybody can do what they like because I have a disability,’ she said.

‘That makes me angry. I feel this is my last chance in a way that, if I don't do it now, I may not ever be able to do it.’

Key Takeaways

• Virgin Australia customers who booked tickets before the airline went into administration due to COVID-19 will lose their unused flight credits if they do not book new flights by year's end.
• Disability pensioner Karen Lancaster is set to lose around AU$15,000 in travel credits because the airline won't allow bookings with partner airlines, with the exception of Alliance Airlines.
• Ms Lancaster used her superannuation to purchase return business class tickets to Los Angeles to visit her family, and now cannot do so due to the airline cutting international routes due to restructuring from American private investment firm Bain Capital.

Members, we'd love to read about your experiences with Virgin Australia. Have you ever had less-than-pleasant experiences when flying with them in the past? If so, how did you and the airline deal with these situations? Please take a moment to share your stories with us in the comments below.

it would cost almost nothing for the board of directors to have a whip around and reimburse $15000 to this poor customer, she has already paid the money, the directors of Virgin would lose nothing, its a tax deduction, and would be a drop in the ocean from their pay, I doubt if about a thousand bucks from each director would result in the resulting tax to be paid about a fifty dollar hit from their pay packet.or at best nothing

 

[MariaG]

if the directors of virgin reimbursed this poor woman who in good faith paid in advance for the flight, it would not cost anything (other than. the tax man)

it would cost almost nothing for the board of directors to have a whip around and reimburse $15000 to this poor customer, she has already paid the money, the directors of Virgin would lose nothing, its a tax deduction, and would be a drop in the ocean from their pay, I doubt if about a thousand bucks from each director would result in the resulting tax to be paid about a fifty dollar hit from their pay packet.or at best nothing

All they would need to do is dip into their respective expense accounts. You know, do without that extra gin and tonic, don't hire a limo instead of a cab....etc. Virgin should be taken to task on this one.

 

[magpie1]

seeing that she made the booking with Virgin in 2019 before the take over.....maybe she should be seeking
a refund from Richard Branson instead......this has turned into a horrible crash landing for this poor woman. I hope that Bain Capital come to the party and do the right thing here.

 

[joany]

Maybe she needs to contact ACA and the Ombudsman also get someone to start a Go fund me account. I feel for you.

 

[Sherza]

When 71-year-old Karen Lancaster booked a trip to Los Angeles in 2019, she could never have imagined that a year later, she would be left fighting for a refund and still unable to meet her family.

Karen, who is vision impaired and relies on a carer when travelling, made the difficult decision to drain her entire superannuation account to pay for business class flights to visit her son and daughter-in-law and meet her 21-year-old granddaughter for the first time.

‘[My son has] had leukaemia; it might be my one and last chance to see him, and I've never met my granddaughter; she'll be 21 in February,’ she said.

‘I speak to her on the phone, but I've never met her person-to-person and the thought of just giving her a big hug… It's hard.’

View attachment 33731

Virgin Australia was one of the first major airlines in the world to go bust under the strain of COVID-19 travel bans. Credit: Shutterstock.

When the COVID-19 pandemic struck, and Virgin Australia faced financial troubles, Karen's plans fell apart. Her flights were cancelled, and despite her personal hardships, Virgin refused to refund her money.

Now, Ms Lancaster is at risk of losing around $15,000 in flight credits because Virgin doesn't allow customers to use these credits for new bookings with most partner airlines, except Alliance Airlines.

Virgin Australia reportedly reduced its international flight operations after being acquired by Bain Capital and coming out from administration in November 2020.

‘As part of the restructuring process, Bain Capital has disposed of the Boeing triple sevens and the Airbus A330s, which were the aeroplanes they were using for international routes and some domestic routes,’ said aviation analyst Geoff Thomas.

Ms Lancaster was initially informed that she could rebook her trip to Los Angeles with Virgin Australia once the borders reopened.

However, the situation changed, and instead, they offered her credits that could be used for travel within Australia, New Zealand, Christmas Island, Bali, Fiji, or the Solomon Islands.

Unfortunately, these credits are useless to her, as she only wanted to travel to Los Angeles to meet her family.

‘No, why would I want to go anywhere else? I'm blind,’ she said.

‘I can't see what's around me, I cannot enjoy it. I only want to go to America to see my family; that's all I want. I don't want anything else.’

In a letter sent to Ms Lancaster, Virgin Australia explained that during the restructuring process managed by Deloitte, it was determined that bookings made before the airline went into administration could not be refunded.

The funds had to remain with the company to ensure its future viability.

‘The new Virgin Australia business does not hold any of the funds customers paid for these bookings,’ the company said in a statement.

‘We are committed to helping customers impacted by flight cancellations, and we have extended the expiry date for Future Flight Credits multiple times in recognition of the challenges COVID posed to travel. These credits will expire on 31 December 2023, over three years after they were issued.’

CHOICE Chief Executive Alan Kirkland accused the airline of using legal technicalities to avoid refunding customers for services they can no longer provide, saying: ‘Virgin should be treating this like a moral issue, not a legal issue.’

He said he believes that Virgin should approach this matter from an ethical standpoint and not just a legal one. He hopes that public pressure will lead Virgin to change its policies, much like Qantas did in response to customer outrage.

Ms Lancaster has exhausted her savings and superannuation on Virgin flights and is left without financial resources.

‘I feel very much as if I'm not a second-class citizen but a third or fourth. That I've got no rights at all, that anybody can do what they like because I have a disability,’ she said.

‘That makes me angry. I feel this is my last chance in a way that, if I don't do it now, I may not ever be able to do it.’

Key Takeaways

• Virgin Australia customers who booked tickets before the airline went into administration due to COVID-19 will lose their unused flight credits if they do not book new flights by year's end.
• Disability pensioner Karen Lancaster is set to lose around AU$15,000 in travel credits because the airline won't allow bookings with partner airlines, with the exception of Alliance Airlines.
• Ms Lancaster used her superannuation to purchase return business class tickets to Los Angeles to visit her family, and now cannot do so due to the airline cutting international routes due to restructuring from American private investment firm Bain Capital.

Members, we'd love to read about your experiences with Virgin Australia. Have you ever had less-than-pleasant experiences when flying with them in the past? If so, how did you and the airline deal with these situations? Please take a moment to share your stories with us in the comments below.

They did the same thing to me. I’ve lost well over $2000. I will never fly with them again, in fact I’m now afraid to book flights at all with anyone. When you’re on a pension, you certainly can’t afford to be ripped off like that. I fail to see how it can even be legal. I don’t know of any other type of business that can get away with theft like that