British Midland has long had a partnership with Virgin Atlantic, though that will be coming to an end on August 31, 2012. After that date British Midland miles can no longer be redeemed on Virgin Atlantic, and vice versa. So while you still have a few weeks to make bookings, Virgin Atlantic seems to suggest that for new bookings travel needs to be completed by August 31, 2012, and not just booked by that date.
Redeeming British Midland miles for travel on Virgin Atlantic never presented that great of a value. They have high fuel surcharges and always had a separate award chart which was higher than Star Alliance partners in almost all cases, so I can’t say I was ever all that tempted. Virgin Atlantic terminating their partnership with United was a much bigger loss, in my opinion.
Who would’ve thought British Airways doesn’t want you to be able to redeem their points for travel on Virgin Atlantic, and vice versa?