Virgin Australia has created a new subsidiary for its Velocity Frequent Flyer program.

The rewards branch will be helmed by Neil Thompson who will join the company as division CEO in August 2012.

The Velocity Frequent Flyer program will operate as a stand-alone business, with Mr Thompson reporting directly to Virgin Australia CEO John Borghetti.

“Velocity Frequent Flyer remains a key growth opportunity for our business. We have done a lot of work over the past 18 months to create a solid foundation for the Frequent Flyer program,” Mr Borghetti said.

Virgin Australia aims to position itself as the market leader in loyalty programs across the nation, driving future earnings and potential.

“The Velocity Frequent Flyer program is critical to Virgin Australia’s goal of becoming the airline of choice in Australia and we are confident this new structure will help us achieve that”, Mr Borghetti added.