Building on the Virgin Brand and Network

[Bagpuss]

Fits in line with my theory that Virgin Australia and Virgin Atlantic will continue to try and tie up, especially more so with FlyBE getting rebranded to Virgin Atlantic

Virgin Australia and Virgin Atlantic set to deepen ties

Virgin Australia is seeking regulatory approval to co-ordinate on services with Virgin Atlantic Airways between Australia and the UK and Ireland via Hong Kong and Los Angeles.

www.flightglobal.com

 

[eastwest101]

[Slow clap] Well done guys, about 10 years too late, but great idea.....

 

[jasecao]

they also need to solve the 7 hour layover and lounge access of 4 hours before the Virgin Atlantic flights in HKG

 

[Bagpuss]

they also need to solve the 7 hour layover and lounge access of 4 hours before the Virgin Atlantic flights in HKG

Yes it is mentioned in the ACCC application along (along with operating from same terminal, joint lounge etc.) , plus stage 2 will be to expand to Europe destinations.

https://www.accc.gov.au/system/files/public-registers/documents/Virgin%20Australia%20and%20Virgin%20Atlantic%20-%20Application%20Received%20-%2003.06.19%20-%20PR%20VERSION.pdf

 

[Ausbt]

FlyBE getting rebranded

I don't suppose there are any benefits at all coming for VA WPs on FlyBE are there? I'm looking at taking an EDI-LHR in a couple of months.

 

[Bagpuss]

I don't suppose there are any benefits at all coming for VA WPs on FlyBE are there? I'm looking at taking an EDI-LHR in a couple of months.

Not yet, they haven't announced the start of the rebranding other than saying it will be rebranded. One of the many articles : Virgin Atlantic-led consortium pumps £10m into Flybe

There's a possibility of Virgin Atlantic buying all or parts of Thomas Cook Airlines.

If this all happens I imagine it maybe Etihad first who walk away from VA.

Principal Network:
VA: Australia and short haul international
Delta: USA (codeshare)
VS: UK / Europe
SQ: UK & Asia (codeshare) & USA (reciprocal VFF benefits)
Hong Kong Air / HNA etc: Asia

 

[Zanzara]

Clearly they need to make the flights to HKG more economically viable by increasing patronage to HKG & beyond. It's an interesting submission:-

• They will apparently automate frequent flyer redemptions (rather than having to call up and book seats). Clearly there's no intention to change the clunky practice otherwise as it now. No promise to make more seats available though...

• QF & EK currently have 40% of the market between oz & the UK & ROI. Next is EY with 13%.

• Loads on QFs direct flights from Perth to London are 94%. Kerching $. However, apparently VS have the aircraft to also fly this route but won't as it wouldn't be able to make them 'commercially viable.'

• 14% travellers to HKG go on to Europe.

• VA loads on flights to HKG are only 66%. Surprising therefore that they don't make more reward seats available. Last time I looked it was near on impossible to find a business class seat! Surely reward seat income would be better than flying empty?

• Loads on CX & QF to HKG are much higher, around 80% from OZ.

• VS to HKG-LHR is 83%

• VA seems to have no influence on the pricing on EY & SQ codeshare services.

• VA/VS have 3% of the current UK/ROI OZ market which is shared with 53 airlines.

• VS have no intention of reentering the direct market to OZ it left after flying to SYD for 10 years in 2014.

• Current 'arms length' lounge arrangements would be improved - which wouldn't be hard.

• Increased frequencies, up gauging of aircraft and 'enhanced' products on Virgin-to-Virgin (on board recognition, check-in, improved connection times etc... are all mentioned as doable... would have thought these were possible now?! Not sure where the larger planes will come from either?

• VS marketing in Oz is very limited. 1 sales rep is based here!

 

[The-Aviator]

Would be nice to see VS launch London to Perth flights, connecting onto VAs Coast to Coast A330s! I think the market would be there for it.

 

[Bagpuss]

Would be nice to see VS launch London to Perth flights, connecting onto VAs Coast to Coast A330s! I think the market would be there for it.

Virgin eyes Perth to London direct route

Sir Richard Branson wants to compete with Qantas on the route “as soon as possible”.

thewest.com.au

 

[Bagpuss]

• Increased frequencies, up gauging of aircraft and 'enhanced' products on Virgin-to-Virgin (on board recognition, check-in, improved connection times etc... are all mentioned as doable... would have thought these were possible now?! Not sure where the larger planes will come from either?

I think initially this is from the VS side. From a VA view point the A330's will go and replaced most likely with a variant which they replace the B777 with, but this is a l-o-n-g time out.

 

[HS-TQE]

Might be one of the more sensible things that DL/VS and assumably Scurrah (VA) has done. I note that the VS/VA JV proposal was drawn up post-Borghetti VA era.

May DL/VS/VA be preparing for a potential HX liquidation? (allowing VS and VA to 'bid for slots in HKG' to allow for "better" connections between VS and VA).
Basically VS/KE/VA fly to HKG for "Team Delta" since DL withdrew from HKG with their own aircraft.

 

[Obzerva]

The move by VA and VS to bring more material benefits to each other and to customers makes sense, however it's all a little bit of playing catchup.
The purpose of the VA flights to HKG was for the HX connections - so if HX falls over, would VA's HKG service still operate?

Does anyone have any knowledge as to how many people are continuing on to other flights on to HX from VA's flight, I imagine it would be more than continuing on to LHR on VS.

 

[SeaWolf]

I suspect a lot of this may also have to do with the recent changes and downsizing of EY. It's likely that EY will continue to cut services to Australia going forward and I think we might well see further downgrades to service levels as well. Diversifying their partners make really good sense for VA.

 

[pauly7]

I suspect a lot of this may also have to do with the recent changes and downsizing of EY. It's likely that EY will continue to cut services to Australia going forward and I think we might well see further downgrades to service levels as well. Diversifying their partners make really good sense for VA.

Cut further? They are already down to their smallest plane for MEL.

 

[SeaWolf]

Cut further? They are already down to their smallest plane for MEL.

But they fly MEL-AUH twice daily at the moment, they might cut back to 10 times a week or even once daily. PER has been dropped entirely.

 

[Zanzara]

Makes perfect sense. But like people have pointed out; it's perhaps a bit too late to be playing catch-up on the already capacity flooded AUS/UK ROI market. They have to do something though

 

[pauly7]

Makes perfect sense. But like people have pointed out; it's perhaps a bit too late to be playing catch-up on the already capacity flooded AUS/UK ROI market. They have to do something though

Charge people for Starbucks and muffins

 

[Zanzara]

Or sell Richard Branson figurines/action men toys?

Mind you, these days, RB owns less and less of VS & VA

 

[Zanzara]

It's not APPARENTLY completely about HKG. The ACCC application mentions that VA/VS also hope to market LAX as a connection point onto the UK & ROI (and expand interest in that route as well as via HKG). A long way round....

Although it is clearly the HKG route that is struggling.

Interestingly, an ability for 'fully reciprocal automated bonus points earn' on tickets, along with 'reciprocal points upgrade proposition' on the whole OZ/London route by automatically being able to utilise Velocity/ Flying Club points to upgrade (on what is actually 2 sectors) is promised.

Lounge sharing and greater convenience is mentioned at LAX and HKG as a result of commercial agreements/aircraft parking etc.

Agreements with EY/SQ/DL etc & VA are all subject for renewal in 2020.

 

[justinbrett]

Virgin says that the increased cooperation would allow the two airlines to align baggage allowances, seat selection and lounge access, among other things, to offer a more seamless customer experience. The alliance could also result in improved schedules and reduced connection times for customers transiting via Hong Kong to Europe.

All of which could be done now without the need for regulatory approval.