When airline mergers happen, it’s almost inevitable that changes will also happen with their partnerships. Many airlines have exclusivity agreements with some of their partners, so that’s a detail that has to be hashed out when two airlines join forces.
Typically this comes in the form of the company taking over keeping their agreement, and the company being taken over discontinuing their agreement. However, that’s not always the case. For example, when American took over US Airways, they maintained relationships with both Barclaycard and Citi.
With Alaska’s takeover of Virgin America having closed late last year, and with Alaska recently sharing their vision for the combined airline, it’s clear that not much of the Virgin America brand will survive. I think a lot of us assumed this would be the fate of their co-branded credit card as well, and it looks like that happened sooner rather than later.
New applications are no longer available for Virgin America’s credit card, per a notice posted on Virgin America’s website:
Notice: new applications are no longer being accepted for the Virgin America Visa Credit Card program and current cardholders will be notified of any changes affecting their account.
While Alaska’s credit card is issued by Bank of America, Virgin America’s credit card is issued by Comenity Bank. I suspect for the time being it’s business as usual for existing cardmembers, though given that Virgin America Elevate is being discontinued early next year, I imagine the card will be as well.
Time will tell how they go about discontinuing the card — will they switch cardmembers over to another Comenity Bank product, will they somehow work out a deal with Bank of America to “sell” their portfolio to them so existing cardmembers can get Alaska cards, or what.
Virgin America actually has a reasonably compelling credit card, at least for everyday spend. The card offers one point per dollar spent, and Elevate points are among the most valuable points currencies out there, as each point is worth over two cents. No, I wouldn’t want to put all my spend on a Virgin America credit card, but for an airline card, it’s one of the better ones out there for spend.
Did anyone use the Virgin America credit card, and if so, are you sad to see it go?
(Tip of the hat to Million Mile Secrets)
I have the same question as Michael above ... will the fact that Virgin has chosen to close all our customer accounts rather than roll us into new Alaska cards hurt our credit?
When the Virgin card closes, does that affect your credit negatively?
It would be great if they transfer the card to the Bof A product and include the signup bonus. And to Denis as someone living in Alaska I take offense to your comment about the "Village" Alaskans fly more per capita than any other state. Alaska Airlines is much more than a regional airline flying to the Midwest, East Coast, Cuba, Hawaii, Mexico and Canada. !!
Called in 6/28/2017, told the card would work fine for the rest of 2017, and unknown for 2018. Based on Red Roof Inn Visa closure experience, I guess VX Visa would either close or transfer to BoA AS card? The latter doesn't interest me either, cuz I plan to get a new AS card anyway, with sign-up bonus.
@ Mark I don't think Alaska even wanted the planes! They have a pure 737 fleet, and the A320s are sure to mess it up.
The Virgin America international points are worth more than any airline. This sucks.
@Denis
The most valuable assets of VX are not the experiences, its the gates, slots and planes. I think most VX loyalist miss that fact. I know many people who live in SFO welcome Alaska because of the increased destinations that the combine airline will now offer and the opportunity for free upgrades.
I do respect Alaska management for what they have done with AS and how they run AS operations. However it looks so wrong what they're doing with VX. Ok, I got it, they purchased VX not because they needed it or it was a good idea to grow together. Still, they are throwing away the most valuable bites of their purchase:
- unique onboard experience (and VX pax often pay more to get this...
I do respect Alaska management for what they have done with AS and how they run AS operations. However it looks so wrong what they're doing with VX. Ok, I got it, they purchased VX not because they needed it or it was a good idea to grow together. Still, they are throwing away the most valuable bites of their purchase:
- unique onboard experience (and VX pax often pay more to get this experience)
- well rounded and market appreciated first class product
- a way stronger and recognisable brand appealing to much larger audience than a village-like Alaska
They effectively nullify everything associated with VX. I don't think it would find much appreciation among VX core customers.
Really. Just don't get that.
In an effort to quickly assimilate the new pieces in M&A deals, babies are often thrown out with bathwater.