Qantas Frequent Flyer Points - to redeem now before bust?

nightqueen on 21/03/2020 - 14:24
Last edited 21/03/2020 - 16:59

With Qantas and virgin under high pressure from COVID. There are talks of Qantas and virgin needing possible government assistance (https://www.abc.net.au/news/2020-03-19/qantas-to-stand-down-…)

Is it wise to try and redeem all our Qantas points now with gift cards and on the Qantas store?

If Qantas goes bust, all frequent flyer points could be worthless.

In addition from the Qantas store:

Due to uncertainty of supply on many of our products, we’ve introduced a limit of 2 items per product for each member per day. We’ve done this to ensure the availability of as many of our products, to as many of our members as possible.

General Discussion

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Comments

  • CyberMurning on 21/03/2020 - 14:27
    +13

    yeah they will bust if people keep posting something like this thread.
    thanks Mr. Ng

  • Maglia Nera on 21/03/2020 - 14:40
    -4

    THE WORLD WILL END !

    FFS AM OVER THIS NEGATIVITY - GO AND DROWN YOUR NEGATIVITY ELSEWHERE PLEASE. K THX BYE

    • Frayin on 21/03/2020 - 17:44
      +4

      Yes, lets ignore it all. "She'll be right" is such a bull shit mentality to have.

  • [Deactivated] on 21/03/2020 - 14:46
    +17

    Qantas will be fine, ditch virgin.

    • jimbobaus on 21/03/2020 - 15:09
      +9

      1000000% This

    • [Deactivated] on 22/03/2020 - 07:56

      Yep. Virgin Australia don’t have the cashflow.

    • Zondor on 23/03/2020 - 11:25

      Big oof I have credit with them for my canceled flights. Guess i'll just have to give them my thoughts and prayers that they survive.

    • Geoff-bargain on 23/03/2020 - 16:18

      Virgin have Singapore air support and I don't think the government would leave us with only Qantas do pretty unlikely they would be allowed to go down.

      • [Deactivated] on 23/03/2020 - 17:27
        +1

        Ever heard of ansett?

        • Ughhh on 23/03/2020 - 17:30

          The airline flew domestically within Australia and from the 1990s to destinations in Asia

          Doesn't sound 'major' in todays standards imo.

  • Tee Rex Arms on 21/03/2020 - 14:46

    I’d be redeeming sooner rather than later. I.e right now after reading this.

  • IanC on 21/03/2020 - 15:00
    +4

    Not could be worthless.. Will be worthless

    Also only a matter of time before they double the redemption points.

    They have also deferred their dividend payment. (don't hold your breath for any of it)

    As for negativity, the majority still have their heads in the sand.

    Check the stupidity at Bondi Beach

  • nightqueen on 21/03/2020 - 15:16

    If Qantas goes negative cash flow, they can dilute their Qantas points and 2-3x the redemption points needed.

    • RockyRaccoon on 21/03/2020 - 20:00

      Wow, considering they are probably bleeding 10's of million$ a day, I dont think diluting Qantas points will help much. And they will need to keep their frequent flyers on side to help them when they start back up even if its after being bailed out.

      But hey go for it, probably as self fulfilling as the TP crisis

      • spammingb on 23/03/2020 - 15:18

        Qantas points are a $3b liability to both Qantas and Virgin.

        https://www.afr.com/companies/transport/the-3b-liability-cir…

        Not insignificant at all.

        It's the liability that's one of the easiest for them to minimise too. And I'm sure there's pressure from shareholders to minimise their liabilities.

        • RockyRaccoon on 23/03/2020 - 15:45

          Keep in mind it generated $400m in profit in 2018, thats a good return on its share of that 3 Billion (2.5 Qantas).

          Killing the program kills that revenue for them.

          • SomeGuyOnOzB on 01/04/2020 - 15:01

            @RockyRaccoon: Seems they could also suspend usage of points for a year (then dilute their value/halve them) or kill all points and make people start again in a couple of years

            We've seen them dilute the value in good times

  • Hithere on 21/03/2020 - 15:28
    +3

    The Federal Government will step in and support Qantas and any other big business, especially important/essential services, who look like going bust.

    They won't let their mates go broke.

    • IanC on 21/03/2020 - 15:40

      So their "mates". should not be supported and essential services allowed to go broke?

      Just as well the last election went the way it did.

    • nightqueen on 21/03/2020 - 17:01
      +1

      Back in 2014
      https://mobile.abc.net.au/news/2014-02-13/qantas-forcing-gov…

      Liberal government was very reluctant in providing financial assistance and support to Qantas.

      • nickj on 23/03/2020 - 14:12
        +1

        Even in that article, in 2014, they said it was an essential service, competing against other govt-supported companies, trying to fix their own issues themselves. Main obstacles were a) implicitly an ideological objection of liberal govts to interfering in commercial enterprises, and b) assisting Qantas and not Virgin.

        Fast forward 2020, where it's clear a) government is going to have to intervene in LOTS of commercial enterprises, and are doing so already, b) this is not a situation resulting from an airline's own actions, or which they could reasonably have foreseen or planned for, or caused by the normal business cycle or competition, and c) where both Virgin and Qantas are likely to want some help (quite possibly to different degrees).

        So I think the federal government probably will have to help both airlines more than they already have with airport fees. I would be tempted to give some money for each full-time-equivalent employee they retain in active employment (not stood down, not retrenched), equal to say 80% of the amount you would have to pay each adult for Jobseeker Payment + Coronavirus Supplement. I.e. give them what you would have to probably pay anyway if either airline folded, because at the end of this it would be much better if we had both airlines still operating, so that we can bounce back quickly. Cost might be very approx $208 million/year for Qantas and $87 million/year for Virgin.

        If they need more help than that, I would expect something back for that help - something priced to be not punitive, but not super attractive either - you want it priced so it's the right option only if needed for survival. For example, if it's a loan, a repayment of that loan within 5 years (low interest rate but with steeply increasing interest rates after 5 years), and the government being treated as the first-in-line secured creditor; or if it's cash then treat it like an equity raising in those companies equal to the value of the cash given (probably not at current distressed valuations, but not at peak 1 Jan 2020 valuations either, probably something half way between the two - so around 10 cents a share for Virgin holdings, and $4.50 per share for Qantas).

        And apparently in the Australian today, Qantas are trying to lobby against assistance to Virgin. Frankly, they can get lost - one of the main reasons that Qantas has the dominant position it has today is because it was the government owned from 1947 to 1997, and the legacy of that government-backed semi-monopoly position is the primary explanation for why they are the today's market incumbent. So it's a bit rich to deny anyone else more government assistance during a global crisis, when they were gifted 50 years of government assistance & backing.

    • SomeGuyOnOzB on 01/04/2020 - 15:03

      Who said go broke? They us benefiting from the points while continuing business, or make there be less reward flights available etc

  • capslock on 21/03/2020 - 15:40
    +1

    Nobody knows yet if they will go broke.

    If you believe that they will then definitely cash your points.

    Should make it easier for those left behind to actually redeem their points for flights with less competition from other people.

  • mskeggs on 21/03/2020 - 15:40

    Take a look at the Qantas store now. They have no stock of higher value gift cards at Woolies.
    Virgin does, but who can say?

    • nightqueen on 21/03/2020 - 17:06

      They have placed a limit of 2 redemptions per member per day. Sounds like Qantas store is getting smashed with redemptions. Panic redemptions

      • RockyRaccoon on 21/03/2020 - 20:04

        Maybe by all the Ozbargainers spooked by this post? 🤦🏽‍♂️

        BTW Mskeggs most organistaions have a stock of gift cards, that get replenished when sold out, but over weekend this wouldnt be automatic. Sometimes Suncorp sell out of certain egift card denominations then a day later its back in stock. Partly a protection against losing too much if hacked etc

    • watwatwat on 22/03/2020 - 01:11

      Virgin does, but who can say?

      Are you sure? Link?

      • mskeggs on 22/03/2020 - 09:07

        Sorry, virgin has other higher value cards in stock. Or did yesterday.

  • Catsfan070911 on 21/03/2020 - 15:40

    Good to see Points Club at least :)

  • DingoBilly on 21/03/2020 - 16:25

    Not going to happen.

  • brendanm on 21/03/2020 - 17:47

    Qantas will not go under.

  • chumlee on 21/03/2020 - 18:17

    I redeemed all my velocity points for gift cards earlier this week.

    Qantas should be fine as all the politicians rack up QFF points for personal travel and will ensure the program stays after public bailout.

    Always back self interest by politicians

    • nightqueen on 21/03/2020 - 21:18

      Good idea, virgin would go busy first and velocity program will go down

    • Geoff-bargain on 29/03/2020 - 10:35

      Yep same with rents for investment properties. If they think their tenants can't pay the will be a bailout.

  • maiuspala on 21/03/2020 - 19:07
    +1

    But what will happen to my tickets if i have redeemed my flight(s) with qff points and they go bust before my flights?
    Will i be able to use my qf tickets on some other flight company from the same alliance?

  • Stalker on 21/03/2020 - 19:35

    Thanks OP - I decided to cash out on both. Wouldn't have been using my points for flights anytime soon, but I'll definitely make use of an Apple TV (Qantas) and Freedom Giftcards (Virgin). :)

    • IanC on 21/03/2020 - 20:44
      +1

      Good luck with Freedom. Be quick

      • Stalker on 22/03/2020 - 10:47

        Hmmm…yeah, good point. Didn't really think that through but I am looking for a new couch. Oh well, fingers crossed that Perth doesn't go into lock down for a little while yet! :p

    • nightqueen on 21/03/2020 - 21:17

      All good stalker. Redeeming classic rewards flights is redundant for the next 6-12 months.

    • DeepPocketsShortArms on 04/04/2020 - 11:28

      I wouldn't waste your time with freedom.
      I paid for a sofa set in November. It never turned up. I kept chasing them and they would give me some bull about their ordering system and it will arrive in two weeks. This happened four times. I demanded my money back in the end.
      Just read their reviews on productreview.com.au.
      It's a shame, they have decent products and used to be a decent company.

      • Stalker on 04/04/2020 - 12:02

        Thanks - Yes, their relatively new made to order business model is a PITA. I'll hopefully just use my giftcards to by some smaller and in stock homewares. ;)

  • pmdg777 on 21/03/2020 - 19:48
    -6

    Let qantas fail. 10000 lazy over entitled free loaders on discount travel need to be taught a lesson

  • anonymite999 on 21/03/2020 - 22:53

    I just spent 850k points I've been saving up for years. One in the hand is worth 2 in the bush

    • SBOB on 22/03/2020 - 07:20
      +1

      on what?
      Im about to hit 500k when the current cc promo points hit this month
      no flight plans so not sure what to use them for as a 'best bang for buck' option (as im sure the demand for buying them has dropped)

      • No and then on 22/03/2020 - 08:04

        Best bang for buck would be business round the world ticket.

        • anonymite999 on 22/03/2020 - 08:07

          Lol real funny. I've been saving for it for 5 years!

      • anonymite999 on 22/03/2020 - 11:42
        +1

        A third on wine. 72 bottles at 30 a pop (Reduced from 55).

        The other 2/3rd went on something I got nearly 0.8c per point. Will update once my item says shipped lol.

        I'm expecting meltdown

        • SBOB on 22/03/2020 - 12:01

          I'm expecting meltdown

          the way their gift card section is, yes.. it would seem thats possible

          not sure i could find much in their store thats 'worth' it

        • SBOB on 24/03/2020 - 19:07

          ship yet?

    • nightqueen on 22/03/2020 - 08:28

      What do you recommend spending the points on? I think round the world business class flight is a fail option for the foreseeable future. Other one world airlines could go bust too.

      • anonymite999 on 22/03/2020 - 15:03
        +1

        Stuff on sale in the qantas store only. Electronics are no good because no one ever pays RRP so even the 40% off on stuff is a rip off. Q80 75 inch Samsung is 4300 in shops but is 750k (WAS when it was 40% off) and now is back to 1.278m points.

        Even at 750k points you are getting about 0.6 dollar per point.
        Gift cards get less around 0.4

        Depends if you want value or something you really want?

  • Brendoo on 22/03/2020 - 08:14
    +5

    Qantas wont go under. If they do, you may as well assume air travel will no longer exist in the world.
    20,000 staff got stood down this week, ⅔ of their workforce. Considerable reduction in cost right there to help.
    And as you would have seen, we all received a recent email about the new programmes being introduced to earn point sand status credits without having to fly.
    I'd also expect Qantas to be nationalised if the situation got so extreme, but doubt it would come to that.

    • leiiv on 23/03/2020 - 14:16

      Isn't that what they said about Ansett before?

  • popsiee on 22/03/2020 - 08:15

    End of December Qantas had 1.7 Billion cash and with the staff stood down will have no problem surviving . Government had said they will receive part of the stimulus package as well .

    • nightqueen on 22/03/2020 - 08:30

      Oh great, had no idea they had so much cash sitting around. I thought with all their expensive airplane depreciating and sitting in storage and not producing any revenue they would burn out.

  • Jared17 on 22/03/2020 - 08:38
    +1

    Only got about 10k velocity points. How best to use it?

  • capslock on 22/03/2020 - 09:51
    +2

    Woolworths is still buying millions of Qantas points from Qantas to give to Woolies Rewards members. The frequent flyer program still has income coming in.

    Probably the same with Velocity and FlyBuys.

    Banks are still buying points to give to its credit card customers.

    The QFF program and Velocity will survive.

    • bohn on 25/03/2020 - 18:29

      good point

  • Ughhh on 22/03/2020 - 11:03
    +1

    Not too worried about Qantas. More worried about my Velocity points.

    • kerfuffle on 22/03/2020 - 11:38
      +1

      Me too. Just opened up a new credit card to earn even more Velocity points. Not sure if I should cash out and sacrifice storage, and get a 64GB cellular iPad mini 5 instead of the 256GB one …

      • Ughhh on 22/03/2020 - 11:51

        I can't afford an iPad with my points, maybe 1/2 an iPad :( Was originally going to use it for 2x return flights to Melb, but now I'm thinking of either buying gift cards, or transferring to Kris Flyer (don't like the point conversion rate though).
        What a sucky start to a new decade.

    • bluedufflecoat on 22/03/2020 - 17:19

      Sigh… Upon reading this thread, I've redeemed my velocity points. I expect qantas to be ok… Such terrible times…

  • GuessHowMuch on 22/03/2020 - 11:30

    I was just going to post this! I decided not to take the risk with my hard earned points. Just spent 400k QFF points and holding my breath to receive the items this week 🤞

  • anonymite999 on 22/03/2020 - 15:05

    FYI ALL Sales (I.E. 40% OFF Samsung) have been removed. Sorry Ya'll you missed the boat on the Qantas Shop for any decent value.. Qantas wine still have sale items

  • bulldoglikeapproach on 22/03/2020 - 18:05

    Qantas won't go under, but that doesn't mean there won't be cuts to the value of QFF. It's low hanging fruit. I would be very surprised if they don't start there.

    Amex nerfed its rewards program last year and that didn't even require a looming financial crisis.

    • nightqueen on 22/03/2020 - 19:45

      Yes very easy for Qantas to jack up redemption costs for all rewards. Dilute Qantas points value.

  • IanC on 22/03/2020 - 23:30

    Visa and Mastercard finished on Qantas Store.

    Got mine yesterday thanks to OP

    Velocity FF call centre now unavailable for 2 days… Just the start.

    • IanC on 24/03/2020 - 17:04

      Back in stock.

      • SBOB on 24/03/2020 - 19:08

        ~0.37c/point for pre paid visa/mc

        ouch rate

        • bulldoglikeapproach on 24/03/2020 - 19:19

          0c if the program is scrapped. Probably less than 0.37c if it's restructured.

        • IanC on 25/03/2020 - 12:48

          Sure is but you can count on at least a 50% dilution at best..

  • FiDad on 23/03/2020 - 12:30

    Just ordered $250 westfield gift card from Virgin velocity website. Hopefuly it will be delivered alright

  • [Deactivated] on 23/03/2020 - 12:48
    +1

    They won't go down but may be nationalised and the stocsk and points may never be the same again. I used up all my points already last week

  • nightqueen on 25/03/2020 - 10:06

    Virgin Australia will reduce flying to just 10 per cent of normal domestic flights and stand down 8000 workers until at least the end of May, in response to operating conditions imposed to try to halt the spread of coronavirus.

    Anyone that has virgin velocity points are under pressure

    • IanC on 25/03/2020 - 12:55
      +1

      At least they are trying.

      With Morrison dancing the trumpet waltz. (no total lockdown) the infections skyrocket.

      I give it two days before he finally does what he should have done a week ago. The schools situation is farcical.

      Thousands and thousands infections could have been stopped and ultimately 1000's of lives

      • Stalker on 25/03/2020 - 12:59

        Yep - I agree that we will be in total lockdown by the weekend. Sadly, it's two weeks too late… :/

        On the positive side, my Apple 4k TV arrived from the Qantas store in 2 days. :)

  • Zippy7 on 25/03/2020 - 13:05

    I've joined in and redeemed.
    Sad that I missed the sale items/discount, but at least received a discount since it was my birthday month…
    Let's see how long it will take to deliver.

    • desparito on 25/03/2020 - 13:20

      @Zippy7 Qantas or Virgin points?

  • IanC on 26/03/2020 - 22:17

    $500 Woolies card now available at QAN store

    • IanC on 27/03/2020 - 22:32

      All gone.
      Good news received in transit notice for 2 purchased yesterday

  • DrRalph on 26/03/2020 - 22:28

    Qantas is safe. But I dumped my virgin points.

    • IanC on 26/03/2020 - 22:56

      probably will survive but quite obviously the points will be diluted in value making the Woolies card a reasonable spend

  • Stalker on 30/03/2020 - 20:16

    For those who cashed out the Velocity FF points - have you received your giftcards, etc? I claimed on 21/1 and no sign of my giftcards. There also wasn't any email, etc to confirm claim received, processed, dispatched etc (although my points are gone) and the Velocity member support team are currently only responding to reward flight queries. :(

    Conversely, my Qantas item arrived 2 days after the claim was made.

    Should I be worried?

    • bluedufflecoat on 30/03/2020 - 21:10

      Not sure. I submitted my request on 22/3, I've got an email but haven't received the giftcards yet.

    • IanC on 30/03/2020 - 21:17
      +1

      same here.. no email points are gone. Maybe their gone already.

      Qan master card already received and woolies wish card on the way.

      For anyone interested Virgin have Coles Gift cards in stock

      • Stalker on 30/03/2020 - 23:15
        +1

        Hmmm…thx for the reply guys. Also, my post should have said 21/3, not 21/1. So it's only been 10 days, but I want to use my giftcards asap. :p

      • watwatwat on 31/03/2020 - 21:08

        For anyone interested Virgin have Coles Gift cards in stock

        Sold out around midday today in all denominations. They are by far the most valuable.

      • IanC on 01/04/2020 - 20:34
        +1

        gift cards received from Velocity

    • bulldoglikeapproach on 31/03/2020 - 12:37

      I got my jbhifi gift cards today. Cashed out 300k of Velocity Points on 22 March. I never got a shipping notification though so was pleasantly surprised today when they showed up.

      I also cashed out about 30k of Qantas points for JB gift cards and they arrived today as well. I suspect it might be due to the provider of the specific gift card you purchase as to how long it takes.

      • Stalker on 31/03/2020 - 13:23

        Ok, cool. Glad your GC's turned up! Mine are Freedom cards, and I'm not sure they are still open at the moment? So this could be interesting… :/

        • Stalker on 31/03/2020 - 14:40
          +3

          Just to update - My giftcards arrived today via Registered post. Yahoo! Good luck everyone!

      • bluedufflecoat on 31/03/2020 - 14:07
        +1

        🤞🤞 I also cashed out for jb hifi gift cards.

  • muncan on 01/04/2020 - 14:10
    +1

    1.5M QFF points and holding 🤪

  • mini_wombat on 06/04/2020 - 14:06

    Got my vouchers today :-). Can't see the value of miles holding up in the future as I can't see an exit strategy for airlines (except a vaccine). Even if the virus is gone in Australia how can you open the borders in the short to medium term?

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