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[stuartfaz]

Don't they just announce these as they come along. Saville was recently added and Rydges is in the pipeline

Yeah, but then again, this whole thing could just be an anti-climax, so it's in there nonetheless.

 

[oz_mark]

Yeah, but then again, this whole thing could just be an anti-climax, so it's in there nonetheless.

Given the effort going into it, I would suggest that it would need to be a structural changes (e.g. introducing tiers), rather than just a new partner here and there. Mind you, it is not without precedent within the Virgin group to have a big lead up to an anti-climax

 

[stuartfaz]

Given the effort going into it, I would suggest that it would need to be a structural changes (e.g. introducing tiers), rather than just a new partner here and there. Mind you, it is not without precedent within the Virgin group to have a big lead up to an anti-climax

aren't we the ones building it up?

 

[SeaWolf]

aren't we the ones building it up?

Yeah, to be honest, I've seen less publicity than I would have expected for the part of the event that we are sure of, the naming of the new airline. I would have expected a bit of a blitz.

 

[d15.in.oz]

Going slightly OT, for a second, I am surprised that Virgin Blue didn’t want to announce a - full on “…love you Brisbane” (Holiday Travel) Sale starting today.

If not for travel over Xmas, at least the last part of January & February, on all direct services into and out of BNE…including specials for those who don’t ”love Brisbane”, and just want to use it as a transfer port.

 

[stuartfaz]

Yeah, to be honest, I've seen less publicity than I would have expected for the part of the event that we are sure of, the naming of the new airline. I would have expected a bit of a blitz.

I reckon, with the competition the way it is right now, the last thing DJ want to to is to give anything away to QF.

Imagine the panic at QF if it is Star and they didn't know.

 

[d15.in.oz]

Imagine the panic at QF if it is Star and they didn't know.

There will be no panic at Qantas! There are voices that I believe more than yours stuartfaz...

"It's quite difficult to include an airline with a different business model into the alliance"

He went on to confirm Star Alliance was not in membership talks with Australia's budget airline Virgin Blue. UPDATE: Star Alliance Expects To Add India Member By End 07 ((020560.K), (9202.TO), (AC.A.T), (AC.B.T), (AIR.NZ), (ALNPY), (AUA.VI), (LCC), (S55.SG), (SAA.YY), (THAI.TH), (TPA.YY), (VBA.AU), (AT000062), (AU000000), (CA008911), (CA008911), (JP342980), (KR702056), (NZAIRE00), (SG1H9500), (TH024501), ) | SmartMoney.com He said Air New Zealand already covers the Oceania region for the network.

You just can’t make those sort of statements in business unless they are true! I’m all for well researched gossip, but let’s keep it focussed - this report has been around for a while!

 

[stuartfaz]

There will be no panic at Qantas! There are voices that I believe more than yours stuartfez...

Alright, understood. I'm the first to admit that ever since the word 'Star' was mentioned I got caught up in the "maybe's." Mea culpa.

You just can’t make those sort of statements in business unless they are true! I’m all for gossip, but let’s keep it focussed - this report has been around for a while!

Wasn't aware of the report. Once again, my bad. But out of curiosity, what do you reckon the announcement, if any, will be?

 

[stuartfaz]

"It's quite difficult to include an airline with a different business model into the alliance"

Once again, out of curiosity, what kind of changes would DJ need to make to join any alliance? Would they need a J class, more destinations etc.?

 

[SeaWolf]

Well, I think it's a given that they'd need status levels in their FF program and would need some kind of priority check in for them and those with status on other airlines in the alliance.

On having a J class, I'm not sure, but I don't think a bigger network would be needed. After all, Ansett didn't really have a huge network either when it was a member of *A, although it did have a bigger regional network.

 

[oz_mark]

I would expect that they would need a tier system, and a way of providing the relevant alliance benefits. More importantly, and why I think that an alliance may be a way off, is that they need to provide linkages in their IT systems to the alliance partners. This would probably take quite some time and money to do.

 

[ANstar]

I dont think a regional J class is needed for Star Alliance.

BMI have got rid of their short haul J on most routes and also charge for food/drink on board.

Im sure the Long Haul product of Virgin will have J/W/Y so it would be a smiliar fir into that alliance then.

 

[d15.in.oz]

A few other points, off the top of my head, to maybe consider –

• Ansett came into the Star Alliance on the coat tails of Air New Zealand (Although a member in its own right, it was obviously joined as part of an Air New Zealand subsidiary strategy.)
• Virgin Blue, owns and operates a New Zealand subsidiary, which competes directly against Air New Zealand (on markets other than just Trans Tasman), I don’t think having Pacific Blue join Star Alliance, would bring value to Air New Zealand shareholders.
• Star has fought for, and recently won the right to operate its own corporate and conventions programs in Australia (for the next 5 years). Therefore gaining access to Virgin Blue’s corporate sales accounts, would provide little enticement to the Star carriers currently operating into Australia. http://www.etravelblackboard.com/index.asp?id=66021&nav=2 (I presume there is more lure the other way around, for Virgin Blue to gain access to Star’s accounts.)

"Star Alliance has had significant success in the Australian market with Corporate Plus and given the advantages this program delivers business travellers in terms of competitive fares and increased network options we are confident of continued success."

• The value equation of "bringing in" Virgin Blue, vs "leaving" short haul domestic travel to a combination of non Star regionals, LCCs, United Airlines’ codeshares and Qantas; is amplified by two things -
  • Star Alliance flies to and from its major regional hubs, to all of Australia’s larger population centres directly (i.e. having a domestic network partner is not likely to add heaps of value in terms of connections. Plus Singapore Airlines & Air New Zealand already codeshare on Rex.)
  • Singapore Airlines has backed a new LCC entrant into the Australian market
• Qantas works hard to maintain relationships with the more distant Star Alliance carriers (i.e. further a field than New Zealand & Singapore), possibly to ensure that it remains in their interest - not to back Virgin Blue? e.g.
  • United Airlines is quite happy to sell its premium customers onto domestic Qantas business class, rather than its codeshare service with Virgin Blue (And, now that Qantas offers - domestic business class passengers lounge access, those customers may be happier with that situation.) Plus, Qantas doesn’t seem to want to fly to Chicago!?
  • In South Africa, instead of dealing with the One World partner airline present at Johannesburg, Qantas maintains its pre-existing relationship with South African Airways. This leads to baggage & connection issues, as well as customer confusion, as British Airways/Comair is South African Airways natural competitor in the country.

 

[dajop]

On having a J class, I'm not sure

NZ don't have J class domestically. So can't see it being a compulsory element. I think oz_mark is spot on, that IT is the big barrier.

In any event, I still think if an alliance was something worth doing for DJ (and crazydave98 has suggested that the announcement won't be about DJ joining an alliance), Skyteam would be worth pursuing. Might not be that good for AFF members aligned with *, but with the proposed US services, NW, DL & CO (& even AeroMexico) would surely provide a good customer base/feed to the new services (as opposed * where AC & UA already feed their own services + NZ with US the only ones not going across the pacific).

 

[wallacej]

7 days until we really know.

 

[stuartfaz]

It seems I have a habit for finding red herrings, but still, since IT has been brought up...

CareerOne: IT Business Analyst - Virgin Blue - Melbourne, VIC Australia

In response to a recent IT re-alignment...

Probably means nothing, but I found it interesting for a second.

 

[Shano]

It seems I have a habit for finding red herrings, but still, since IT has been brought up...

CareerOne: IT Business Analyst - Virgin Blue - Melbourne, VIC Australia



Probably means nothing, but I found it interesting for a second.

Now you're just stirring the pot.....

 

[alien]

I received one of these emails. lets hope its something good

 

[Yada Yada]

I received one of these emails. lets hope its something good

I'm sure it will be.

There haven't been any backward steps with Velocity before now, as opposed to the "enhancements" rolled out every few years by Qantas, so I'm expecting it to be good.

 

[NM]

There haven't been any backward steps with Velocity before now, as opposed to the "enhancements" rolled out every few years by Qantas, so I'm expecting it to be good.

Please don't remind me that the next round of enhancements is about due :evil: .