Virgin Atlantic targets British Airways frequent flyers after loyalty program changes

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Virgin Atlantic is targeting frequent flyers who have lost out over controversial changes to British Airways' loyalty program, the latest round in a decades-old rivalry between the two airlines.

The airline, majority-owned by billionaire Sir Richard Branson's Virgin Group, said it would offer British Airways 'gold' and 'silver' executive club members their loyalty if they switched to Plan, the airline will match their status.

Anthony Woodman, the executive responsible for Virgin's Flying Club loyalty program, said the changes "make it easy for customers who don't feel loved by their existing airlines to experience Virgin Atlantic's award-winning hospitality".

In an effort to target disgruntled British Airways customers, Virgin said it would offer 1 million flying miles to five "identity matched" customers by February 14, enough to fly 10 times from London to the US East Coast.

Last month, British Airways announced an overhaul of its loyalty points system, which would give passengers rewards such as free seat selection and access to airline lounges, a move that sparked criticism from many customers.

Under the changes, which will be implemented from April, "tier" points will be awarded based on the cost of a flight or holiday package booking rather than the class of travel and length of trip.

To achieve the coveted "gold" status, passengers must now spend around £20,000 a year flying with BA.

The tier points system is separate from the Avios points system that can be used to purchase flights and holidays.

Many frequent flyer experts say the changes mean British Airways effectively excludes most leisure travelers from the higher tiers of its loyalty program.

But some passengers welcomed the move, which would bring British Airways in line with many of its rivals and better reward passengers who spend the most with the airline.

Gilbert Ott of frequent flyer website God Save The Points said a growing number of airlines were using status matching to expand their customer base, but Virgin Atlantic's offer was particularly "aggressive".

"When airlines feel dissatisfied, they offer these warm and fuzzy offers to customers looking for a new love," he noted in a blog post. Similar to getting people to switch banks, convincing quality travelers to switch airlines isn't simple. , but "instant access to the 'good life' is a clever temptation," he writes.

BA said identity matching is a common practice in the travel industry. “Passengers who choose to join other airlines will retain their status with us and continue to enjoy the benefits we offer, such as lounge access and priority boarding, seat selection and bonus Avios.”

With a fleet of 45 aircraft, Virgin Atlantic is a much smaller airline than British Airways, which has more than five times as many aircraft. But Virgin Atlantic focuses its flying on the transatlantic market, which is BA's main profit engine.

Its offers are available to customers of 11 top airlines, including American Airlines, Cathay Pacific, Emirates and Lufthansa.

British Airways and Virgin Atlantic have been at loggerheads since Branson's airline launched in the 1980s, with Branson successfully suing British Airways in the early 1990s, accusing it of using "dirty tactics" to win customers.

While business competition remains fierce, it has eased in recent years, with the two companies working closely together during the pandemic to push for the end of government travel rules.