Air NZ looking to sell some/all of stake in VA

[Foreigner]

Hainan FF program will be of interest and how it matches VA's.

I heard it has just 2 tiers.

 

[clarkkent]

China's Nanshan Group to buy Virgin Australia stake from Air New Zealand

 

[Zerosignal]

Wonder what that means for the partnership now and the velocity FF program.

I like the Air NZ premium economy service significantly over the virgin service...

Actually flying PE back this Sunday from LAX.

 

[rtyuiop]

Interesting! Anyone well versed enough in the Chinese business world to comment on the likely relationship between the two big new investors?

 

[Pleb Status]

I assume NZ will sell their remaining shares to HNA group, which have stated they wish to raise their stake from 13% to 19.9%.

I wonder what SQ and EY will do now. Maybe they will sign up VA to long term partnership agreements and bail out as well. A SQ takeover was my preferred option but this is now unlikely.

 

[AviationNZ]

Wonder what that means for the partnership now and the velocity FF program.

I like the Air NZ premium economy service significantly over the virgin service...

Actually flying PE back this Sunday from LAX.

There is no change to the Tasman alliance or the Velocity FF program used with Air NZ. Many people incorrectly assume the equity and alliance are tied together, but that isn't the case.

The NZ/VA alliance will now be similar to the VA/DL one, in that there is a normal alliance but no shareholding.

 

[AIRwin]

China's Nanshan Group to buy Virgin Australia stake from Air New Zealand

Virgin now has mountain (Nanshan) and sea (Hainan)...

 

[cove]

I wonder if jobs will now get outsourced to cut Virgin's operating expenses.
They really need to fix their business.

 

[Comoman]

That is very substantial total Chinese ownership. I wonder if it might start setting off alarm bells with some entities......

I really wouldn't be surprised if the VA/NZ alliance starts to slowly drift apart - irrespective of what the PR people say it will always be different if no equity involved...

 

[williamsf1]

That is very substantial total Chinese ownership. I wonder if it might start setting off alarm bells with some entities......

I really wouldn't be surprised if the VA/NZ alliance starts to slowly drift apart - irrespective of what the PR people say it will always be different if no equity involved...

They appear to be holding 5% .... unless NZ gets back into bed with QF .... the TT market needs each other

 

[Bagpuss]

I really wouldn't be surprised if the VA/NZ alliance starts to slowly drift apart - irrespective of what the PR people say it will always be different if no equity involved...

Two very separate things. I dont see Air NZ jumping ship to Qantas especially with JetStar operating aggressively in New Zealand.
Air New Zealand really cant go it alone on the AU <-> NZ routes without an Australian airline unless Air North or REX are suitable candidates!!

 

[Chicken]

Air New Zealand really cant go it alone on the AU <-> NZ routes without an Australian airline unless Air North or REX are suitable candidates!!

Only one metal out of so many daily between Sydney and Auckland is VA metal, all others are kiwi. Who knows?

 

[PLANT]

It ain't been approved in China...... So until that happens it ain't happening!
Huge top tear cull in Virgin Australia happening.

 

[dajop]

I really wouldn't be surprised if the VA/NZ alliance starts to slowly drift apart - irrespective of what the PR people say it will always be different if no equity involved...

There are many solid commercial relationships between airlines that don't involve equity. Most of the tran-atlantic market place is tied up in such arrangements. Closer to home, there is the EK/QF and QF/AA arrangments, VA/DL and even NZ have an expanding commercial joint service/codeshare relationship with SQ. I just can't see NZ going it alone without a solid partner on the western side of the Tasman.

 

[dajop]

A SQ takeover was my preferred option but this is now unlikely.

I don't think SQ would necessarily provide the fillip everyone seems to think it would be. They are really struggling with their own house - trying to manage profitability and maintain their brand value in the face of very stiff competition from the ME3 and CX on transcontinental services and LCCs within Asia.

 

[williamsf1]

Huge top tear cull in Virgin Australia happening.

at what level ? have not seen any official announcements

 

[pangwen]

Only one metal out of so many daily between Sydney and Auckland is VA metal, all others are kiwi. Who knows?

I thought that is due to the transtasman partnership? NZ focusses on some routes and VA focusses on others.

 

[pauly7]

at what level ? have not seen any official announcements

GM level departures that I know of personally (direct reports to divisional heads).

Most public was the GM of Marketing who has gone to head up marketing at Myer.

And directly beneath GM level they have been culling and not replacing.... Sydney office most affected. Can't say much more because I have dealings with them.

VA has been actively (and successfully) burying the departures. Not literally of course haha but keeping it quiet. Really tough patch atm.

 

[pauly7]

Two very separate things. I dont see Air NZ jumping ship to Qantas especially with JetStar operating aggressively in New Zealand.
Air New Zealand really cant go it alone on the AU <-> NZ routes without an Australian airline unless Air North or REX are suitable candidates!!

Yes no chance NZ and QF hopping into bed.

QF has stuck the knife into their soft domestic monopoly underbelly and is twisting the knife with AA ripping into their US bread and butter with the new AKL service pending.

 

[AviationNZ]

Only one metal out of so many daily between Sydney and Auckland is VA metal, all others are kiwi. Who knows?

This is a very one-dimensional view to the alliance. There is domestic feed in both directions that needs to be seriously considered, revenue sharing, loyalty benefits, reciprocal lounge access, etc

I thought that is due to the transtasman partnership? NZ focusses on some routes and VA focusses on others.

Correct. If you look at QLD for example, the majority of TT services are run by VA rather than NZ.