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‘Defecting’ Velocity CEO back in court in row with Qantas

written by Adam Thorn | October 4, 2022

There could be a new twist in the legal battle between Qantas and Virgin over the ‘defecting’ head of Virgin’s loyalty program after the case returned to court.

News that Nick Rohrlach is taking part in an appeal at the Singapore Supreme Court means the previous decision — that he acted in breach of an injunction — could potentially be overturned.

Qantas began legal action against Rohrlach’s move in March 2021 after the executive accepted a senior role at Qantas Frequent Flyer, before ultimately taking the top job at Velocity.

Rohrlach had planned to begin his role with Virgin Velocity in May, but that was pushed back to September after a back-and-forth legal dispute resulted in a final victory for the national carrier.

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Qantas argued in court that “highly sensitive” information had been shared with Rohrlach during his onboarding process at its own loyalty program, which the airline feared he would share with rival Virgin upon taking up his new position.

The case was heard in the Supreme Court of Singapore, where Qantas attempted to compel the court to legally enforce a six-month non-compete clause within his employment contract.

His start date was eventually delayed after Qantas won a last-minute injunction. The win was significant given the Flying Kangaroo lost two previous cases requesting to hold the full hearing in Australia rather than Singapore, whose courts traditionally favour employees.

Virgin initially reacted to the injunction ruling by issuing a statement last year saying it “categorically denied allegations that it has been anything but proper and appropriate” and was confident it would be “vindicated” in court.

“We look forward to welcoming Mr Rohrlach to the Virgin Australia family with open arms and showing him why we are Australia’s most loved airline with a winning team that attracts the very best,” the business said at that time.

The news of another potential legal stoush comes weeks after Virgin Velocity made its most audacious attempt yet to encourage Qantas frequent flyers to transfer their accounts.

Its ‘Switch-a-Roo’ campaign followed similar poaching schemes in reverse by the national carrier.

The new scheme, now closed, allowed Qantas gold members to receive a three-month trial membership of Virgin’s equivalent membership tier.

“Virgin Australia is known for being playful, and the Switch-A-Roo campaign is a really great example of us putting our energetic spirit on show for well-travelled Australians who are looking to switch their loyalty to a modern and vibrant airline,” said Rohrlach.

The battle for frequent flyers has become particularly divisive after Virgin’s collapse into administration supposedly led to 25 corporate accounts switching to the Flying Kangaroo from Virgin.

Qantas took advantage by launching multiple switching programs targeting both Virgin and Air New Zealand customers in the aftermath.

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Comments (2)

  • Craig

    says:

    Wonder how long this bloke will stay at Virgin?

    Or will he do a bunk-off like he did to QANTAS?

    Time will tell……

  • MH

    says:

    AJ has ruined Qantas. Shameful the shareholders allowed/enabled such an iconic brand to become so irretrievably tainted.

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