Branson wants Virgin back

[NM]

From News.com.au

VIRGIN Blue founder Sir Richard Branson today said he was looking forward to getting his "baby" back on a successful conclusion to Toll Holding's $4.6 billion takeover battle for Patrick Corp.

Sir Richard met Toll (tol.ASX:Quote,News) chief executive Paul Little this morning and said he was very confident the hostile bid for stevedore Patrick (prk.ASX:Quote,News), which has a controlling interest in Virgin Blue (vba.ASX:Quote,News), would succeed.

He also mentions that a long-haul Virgin Blue under him would be based on the Virgin Atlantic model and not be a single-class LCC model.

 

[JohnK]

He also mentions that a long-haul Virgin Blue under him would be based on the Virgin Atlantic model and not be a single-class LCC model.

I know he may want it, but do you think he will get it back?

 

[QF WP]

Oh, to be able to talk to Brett and find out what he's thinking...

Of course, I could, but I couldn't tell AFF'ers....

 

[NM]

He also mentions that a long-haul Virgin Blue under him would be based on the Virgin Atlantic model and not be a single-class LCC model.

I know he may want it, but do you think he will get it back?

From the media report, it implies he has done a deal with Toll that if they end up successful in their hostile takeover of Patricks, they will sell their Virgin Blue stock holding except 10% to Branson. If that deal has been struck, then its all down to whether or not the ACCC approves the Toll takeover of Patricks.

 

[Mal]

It would be interesting if RB got control...

For one, he has been very vocal about DJ's lack of hedging over fuel. He also wants to push a premium product from Australia to the US etc.

All interesting. Politics is such an interesting sport

 

[bravoecho1]

From the media report, it implies he has done a deal with Toll that if they end up successful in their hostile takeover of Patricks, they will sell their Virgin Blue stock holding except 10% to Branson. If that deal has been struck, then its all down to whether or not the ACCC approves the Toll takeover of Patricks.

Paul Little has done a very clever thing, whereby he doesn't want PRK's holding in DJ so the structure of the offer is that, if successful, holders of PRK will end up holding the DJ shares and Little is only left holding 10% of DJ instead of 62%.

 

[Yada Yada]

Aside from the main story, there is an interesting article in the SMH Business section this morning with additional information. Here is a snippet regarding Branson & Corrigan:

As for the rest of the airline strategy, the two combatants appear to hold roughly similar views. Both are holding the line that Virgin Blue needs to morph from a budget airline into a full service airline.

Corrigan announced a couple of weeks ago that Virgin was moving rapidly in this direction. It was establishing proper business lounges, putting screens on the back of all seats and, most importantly, it has introduced an attractive frequent flyer program with international affiliations.

If Branson ultimately wrests control of the airline from Corrigan he will also look at introducing a business class. And all this will be achieved while retaining a major cost advantage over the full service competitor, Qantas mainline.

Branson's only problem with the recently outlined strategy is that it wasn't done sooner.

He is also keen to expedite a Virgin Blue move to take on overseas routes, particularly the US and Japan, two of Qantas's most profitable offshore destinations.

I imagine that the introduction of business class and an IFE system will get some attention.

 

[JohnK]

Interesting poll on ninemsn today.

Would you be willing to travel overseas on a budget airline?

So far the poll is YES - 15935(58%) and NO - 11434(42%).

The related links are Branson looks to expand virgin blue and Jetstar to offer long-haul flights

 

[NM]

Interesting poll on ninemsn today.

Would you be willing to travel overseas on a budget airline?

So far the poll is YES - 15935(58%) and NO - 11434(42%).

I wonder how much the balance will tip when people are actually planning to fly and they find there is a difference in price? Would the really part with their money, or decide to "give it a go" to save a few bucks?

What people say they will do, and what the actually do is sometimes very different. I know I have been known to change my mind about "cheap vs quality" when the time comes to fork out the cash. But often its a once-off event, like the time I bought cheap ink cartridges for my printer - never again ... its the genuine product only now. I thought the 40% cost saving was worth giving it a try - what a waste of money that learning exercise ended up being.

 

[JohnK]

I wonder how much the balance will tip when people are actually planning to fly and they find there is a difference in price? Would the really part with their money, or decide to "give it a go" to save a few bucks?

I know many people who will only ever fly on the cheapest tickets possible. If that means flying Gulf Air they will do it. Personally I wouldn't fly Gulf Air if you paid me. Qantas seems to be a very expensive alternative to certain destinations. 15 years ago they would fly to Athens and Rome and prices were competitive with star alliance carriers. But to get to those destinations today you would travel with Singapore, Thai or Gulf/Olympic. The 1World/Qantas alternative is to get to London or Frankfurt and then fly back to those destinations. It is up to $800 more than the cheaper options.

In my opinion I think you will find that there would be support for both Virgin Pacific (or whatever it's called) and Jetstar. Especially if they fly to certain Europena that are no longer catered for, as mentioned above. What I certainly hope doesn't happen is Jetstar replacing "traditional QF routes".

But often its a once-off event, like the time I bought cheap ink cartridges for my printer - never again ... its the genuine product only now. I thought the 40% cost saving was worth giving it a try - what a waste of money that learning exercise ended up being

Quite right. For instance premium unleaded petrol is much better for your car. Premium unleaded costs ~10% more but gives you ~10% better performance than normal unleaded petrol. So after a year you have paid the same for using premium unleaded as you would have paid for using plain unleaded petrol.

 

[duffshot]

Getting a bit off topic but....

Quite right. For instance premium unleaded petrol is much better for your car. Premium unleaded costs ~10% more but gives you ~10% better performance than normal unleaded petrol. So after a year you have paid the same for using premium unleaded as you would have paid for using plain unleaded petrol.

Yeah but 10% more power while you sit in traffic does not equate to 10% less fuel required to be purchased.

So at the end of the day Premium Unleaded = more than 10% cost and less than 10% fuel reduction for a same amount of travel, unless you are on a country drive pulling a boat or something similar..

Unless of course you have a car which isn't designed to run on standard unleaded and then using standard unleaded = $$$$

 

[JohnK]

Yeah but 10% more power while you sit in traffic does not equate to 10% less fuel required to be purchased.

So at the end of the day Premium Unleaded = more than 10% cost and less than 10% fuel reduction for a same amount of travel, unless you are on a country drive pulling a boat or something similar..

Actually wasn't that much OT. Pretty relative to the post of using LCC's compared to mainline carriers.

Rephrase statement. While premium unleaded costs 10% more, your car uses 10% less than standard unleaded as well as the better performance. At the end of the day cost is the same but better performance and fuel efficiency.

 

[NM]

15 years ago they would fly to Athens and Rome and prices were competitive with star alliance carriers. But to get to those destinations today you would travel with Singapore, Thai or Gulf/Olympic. The 1World/Qantas alternative is to get to London or Frankfurt and then fly back to those destinations. It is up to $800 more than the cheaper options.

The shortest (and probably cheapest) OneWorld Option from Australia to Rome is to use CX via HKG. probably one of the most direct options. But agree ATH is a problem.

 

[MetroAir]

Hmmmm....DJ with a JC???

Richard would have to do something about his trolley dollies then - perhaps he may be back in the market for some of those 'old' AN staff he didn't want not so long ago.

I do have to say if DJ did go full service with J, I would become interested in using them.

Interesting machinations - wonder if Geoff will have a rethink about Deathstar International should the Toll takeover (and the subsequent suppositions) go through????

Better than any current soap!!!

 

[JohnK]

The shortest (and probably cheapest) OneWorld Option from Australia to Rome is to use CX via HKG. probably one of the most direct options. But agree ATN is a problem.

I would love to go to ATN with 1world to Rome and then el cheapo to ATN. Maybe even ferry!

Problem with CX is since Dec 2005? no status credits or points for discounted airfares. Gross waste of time. Otherwise go to LHR and spend 300Euro on return flight to ATN with BA. Makes overall trip very expensive even in low season. QA/BA option around $2200 where you can get Singapore/Thai for ~$1800 and gulf for ~$1500.

 

[Kiwi Flyer]

ATH Athens can be expensive anyway. Government does all it can to protect Olympic (fat lot of good its done).

 

[JohnK]

ATH Athens can be expensive anyway. Government does all it can to protect Olympic (fat lot of good its done).

Slightly OT but the Greek government has problems looking after itself let alone looking after Olympic as well. Athens maybe a little expensive but there are a lot of beautiful islands where everything is well priced.

I was under the impression that Olympic was due to be sold around Sep 2005. Any news on that outcome? I was also under the impression that Gulf Air services the majority of Olympic flights outside of Europe.

Under Onassis Olympic airlines was very good but went downhill from the time he sold in 1975. It was mainly in the 80's that the airline went really bad when there was a lot of stike going on and many flights grounded.

 

[NM]

The shortest (and probably cheapest) OneWorld Option from Australia to Rome is to use CX via HKG. probably one of the most direct options. But agree ATN is a problem.

I would love to go to ATN with 1world to Rome and then el cheapo to ATN. Maybe even ferry!

There I go again. Thinging one think and typing another .

 

[JohnK]

There I go again. Thinging one think and typing another .

I do it all the time when I have had a few too many.

Wake up in the morning, hopefully sober, and read my posts from previous night. Most of the time it is "oh no, did I really type that again because that it definately not what I was thinking". :?

 

[NM]

There I go again. Thinging one think and typing another .

I do it all the time when I have had a few too many.

I don't need any assistance . I can make mistakes all on my own, without any help from certain substances.