Virgin Australia sues as BP attempts to end partnership
By Chris C., May 11 2017
Virgin Australia’s Velocity Frequent Flyer arm is taking BP Australia to court as the petrol giant moves to align itself with the competing Woolworths Rewards loyalty program: and by extension, the Qantas Frequent Flyer scheme, in what Velocity claims is a breach of contract.
In documents filed with Queensland’s Supreme Court [PDF, 707kb], it’s claimed that BP’s exclusive partnership with Velocity is contracted to continue until at least April 15 2018 – yet BP is hoping to wind this up much earlier on June 30 2017, or by January 1 2018 at the latest if certain exclusivity clauses are waived.
BP is yet to file its defence, although court papers reveal that the company was displeased with Velocity’s new Flybuys partnership – which allows members to earn Velocity points at participating Coles Express/Shell service stations – and issued Velocity with a ‘notice of default’ that Velocity disputes.
Terminating the partnership would bring an end to earning Velocity points on fuel and convenience purchases at BP service stations, and to using Velocity points to pay for the same items.
The Woolworths Rewards scheme which BP is planning to join provides the equivalent of just 0.435 Qantas Points per dollar spent at petrol stations – 0.5655 Qantas Points per litre of fuel when priced at $1.30/litre – compared to a much more generous two Velocity points per litre on fuel and two Velocity points per dollar spent in-store as currently offered.
Chris is a a former contributor to Executive Traveller.
Turkish Airlines - Miles & Smiles
08 Jun 2014
Total posts 262
BP will lose my business, I'm always between the two (Shell and BP) as Shell is earn SC's with VA via the flybuys and then earn double points earn with Amex at any fuel station.
24 Apr 2012
Total posts 2431
Status credits can only be earned via Flybuys at Coles, Coles Online, First Choice Liquor and Liquorland - no status credits on petrol at Coles Express/Shell, unfortunately.
Turkish Airlines - Miles & Smiles
08 Jun 2014
Total posts 262
I was under the impression that earning $100 a month on your flybuys equates to receiving a SC... hrmmmmm
Virgin Australia - Velocity Rewards
19 Feb 2016
Total posts 14
Are you sure you can earn SC with Shell fuel? I can't seem to find it anywhere...
08 May 2017
Total posts 2
Read above - not possible
06 May 2013
Total posts 10
See you later BP!
Qantas - Qantas Frequent Flyer
13 Jul 2012
Total posts 118
Yep!
Qantas - Qantas Frequent Flyer
21 Jan 2014
Total posts 319
I didn't think I would use it much but I have been going to BP for a while now because of the VA deal, I found it an easy way to keep my VA points activity, the QF earn is poor so wouldn't bother with that one considering I have other options closer.
Qantas - Qantas Frequent Flyer
20 Mar 2014
Total posts 131
this is great news! Hello BP!!!
27 Apr 2017
Total posts 39
Should the source of your story be noted? As with many stories here, this material is ripped from Australian Frequent Flyer. At least attribute like a responsible journalist.
Qantas - Qantas Frequent Flyer
28 Jul 2016
Total posts 105
Yay! I will definitely saying hello to BP for my points with QF. Not that generous, but at least I don't have to try find a Caltex that is the Woolworths one, not Starmart
QF
11 Jul 2014
Total posts 1010
BP is crazy doing that, no more BP for me I will keep driving past. WOW Petrol deal with Qantas is just crap.
23 Oct 2014
Total posts 238
Crazy BP!, that was a fantastic partnership.
14 Jul 2011
Total posts 5
Notwithstanding the impending divorce, this landed in my inbox this afternoon...??!!
Qantas - Qantas Frequent Flyer
25 May 2012
Total posts 580
I received this offer today as well, and family members have recently received offers for their next 2 refills covering a bonus 150pts for fuel + 50pts for an in-store purchase per refill, so up to 400 bonus points.
Qantas - Qantas Frequent Flyer
27 Jun 2013
Total posts 22
I got those offers from BP as well. I've simply been using them to get VA points activity, as my main FF program is with QF. This deal has been mooted since the deal was done by Caltex to buy out all BP stations, so not a surprise. But it's very poor earnings on the QFF program!
23 May 2014
Total posts 118
This would stop me filling up exclusively at BP - lots of choice where I live
Qantas - Qantas Frequent Flyer
12 May 2017
Total posts 1
I am in the norhtern rivers area, BP here was cheap before they hooked up with Virgin, now the cost of fuel in all BP service stations here negates whatever points they offer.
Singapore Airlines - KrisFlyer
12 Apr 2017
Total posts 207
I have only just started to use BP because of flybuys. No reason to continue as they always seem more expensive
24 Apr 2015
Total posts 128
Velocity is so much better than very dodgy Qantas ff program, when using point to go to USA. I wish I could exchange my millions of Qantas points for Virign points.
23 Nov 2012
Total posts 24
Sad if the BP-VA partnership ends. Although expensive, I believe BP is quality fuel and the velocity points were a bonus. I'll shop around in future.
Thai Airways International - Royal Orchid Plus
15 Jan 2013
Total posts 458
I live near two BP IN MY AREA and there's one on the rare occassions I drive to work.This partnership was a great way to get extra points when I don't fly or get the car serviced at Midas.Will be taking my business elsewhere in the future such as Liberty or Caltex should this happen.
Qantas - Qantas Frequent Flyer
27 Jul 2013
Total posts 6
The inability to earn points at BP when using a charge card such as motorpass see's me preferenceing to spend my 2 to 300 a week on diesel at Shell using my shellcard. The rate isnt great but some flybuys is better than the N/A that BP offered.
QF
11 Jul 2014
Total posts 1010
Can you earn Flybuys with Shell cards????
Qantas - Qantas Frequent Flyer
27 Jul 2013
Total posts 6
Definitely. Im using a co. Shellcard. Ie my employer pays for the fuel. And i earn the flybuy points.
Qantas - Qantas Frequent Flyer
11 Oct 2014
Total posts 691
This could become an expensive 'bun-fight' for one or multiple partners. BP signs an exclusive deal with Velocity, which is in turn linked to Coles / Flybuys, allowing Velocity members to earn points through the Shell / Flybuys scheme. Not quite as 'exclusive' as originally thought.
BP then buys Caltex assets (with the blessing of FIRB and ACCC) exclusively aligned with owner Woolworths, thereby generating Woolworths Dollars and ultimately QFF points for members.
My take is that the question at the heart of this is: What defines 'exclusivity' and how the involvement and interaction of third parties - ie: Coles and Flybuys, affects the deal. Lack of due diligence on one or more parties' side?
Interesting mine-field. Bets on a court-ordered settlement .. or an out-of-court 'gentlemen's agreement'?
Virgin Australia - Velocity Rewards
08 May 2017
Total posts 13
Well I guess Virgin now knows how it feels to be double crossed by supposedly loyal business associates. The recent changes to our Virgin Money cards reward points combined with the introduction of Economy X has been a real kick in the guts for regular users of VA.
Virgin Australia - Velocity Rewards
16 Jul 2012
Total posts 4
I have been frequenting BP when possible to earn points, I think this is short sighted of BP.
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