Virgin Australia (ASX:VAH) today confirmed that it has entered into a term sheet with Affinity to buy back its 35 per cent investment in the Velocity Frequent Flyer program for $700 million.
The news comes on the back of recent media speculation that Virgin Australia was in negotiations with Affinity to buy back Affinity's investment in Velocity Frequent Flyer program.
Completion of this transaction is subject to certain conditions and is expected to occur before the end of 2019.
Velocity is Virgin’s frequent flyer program and has more than 9 million members.
Shares in Virgin Australia (ASX:VAH) closed flat at $0.16 on Friday.