Virgin Australia plans to create a separate business division for its velocity frequent flyer programme.
The division will be led by a newly appointed chief executive, Neil Thompson.
Thompson will join the organisation in August and will manage the velocity frequent flyer programme as a standalone business unit. He will directly report to John Borghetti, chief executive of Virgin Australia.
Thompson has more than 20 years of experience in loyalty, direct marketing programmes and aviation.
Borghetti says: "Velocity frequent flyer remains a key growth opportunity for our business. The next stage will be to position it as the leading loyalty programme in Australia and as a key driver of future earnings."
"This appointment, along with the other internal changes, enables us to capitalise on the significant earnings growth potential through third-party partnerships and improved participation of our frequent flyers," Borghetti adds.