If you met Paul Scurrah (Virgin Australia CEO), what would you say?

[dajop]

so SkyTeam would be a more likely choice. Hey, if people want VA to join a global alliance, they can't complain about which one you join as long as you join one!

I reckon VA elites who frequent the US might have something to complain about if they join Skyteam. They then probably wouldn’t get access to DL lounges when flying DL domestically without a connecting international flight... skyteam rules.

 

[Harthagan]

I reckon VA elites who frequent the US might have something to complain about if they join Skyteam. They then probably wouldn’t get access to DL lounges when flying DL domestically without a connecting international flight... skyteam rules.

Oh the irony!

 

[jakeseven7]

1) Fix Velocity now you have bought it. Fix the awful website / lack of IT integration with VA. Fix the awful apps. Find a way to join an alliance or iron out all the issues with the patchwork quilt one you have one right now. Release some int. J award inventory (ok that’s a personal favour )

2) Understand that you need to cut costs, but please stop attacking J class benefits and catering we will be left stale pretzels for a hot dinner soon.

3) Integrate Tiger into Velocity/VA like QF has done Jetstar.

4) Highly suggest you never take the 737 MAX, unless QF do. Otherwise you are walking into a PR bear trap. Suggest just refurb the 73H fleet do you really need brand new planes?

5) Relook at some of your outsourced ground crew contracts. Some airports have very average CX experiences from third parties dressed in your uniform.

6) Uniform is looking tired now actually, crew often gossip how bored they are with it. Maybe a nice way to kick morale in the right direction.

7) Find a way to fly smaller planes profitably. Yes we know the ATR and ejet experience has been a blood curdling nightmare but it can’t be impossible. QFLink and Rex manage it. You will never be a full contender in AU without skinnier routes to secondary cities, you can’t make money by hauling heavy gas guzzling 737s in on heavily reduced frequencies v the competition.

8) Kill unprofitable routes straight away and just forget brand ego. Trans Tasman looking at you. Hong Kong. Suspect some Tasmanian services.

9) Best of luck! You have a mandate and can steamroll over the mess that JB made with new turf!

10) PS Fire your Marketing department or at least the people who backed the WIGGY disaster

+1 vote for

- Fix website and Velocity (point 1)
- Stop cutting domestic J class benefits (point 2)
- Fire your marketing team (point 10)

 

[PaulllM]

This is the main reason I don't take Virgin Australia/Velocity more seriously and choose to focus on other frequent flyer programs instead. If VA joined an alliance (be it Star Alliance or SkyTeam - I don't mind), I would probably use it as my main airline/program.

The experience of flying internationally with Virgin's patchwork of partner airlines is haphazard, inconsistent and frequently disappointing. It's a shame because I like Virgin as a brand and as a domestic airline.

The whole need for an alliance is backwards thinking. In a 21st century economy which is time poor, demands flexibility all while maintaining constant (high) levels of service, obtaining a multitude of bi-lateral partnerships would be better than the traditional alliances which locks you into a group with some sub standard airlines.

The key to these bi-lateral alliances is consistency in service throughout the globe, home airline reward programme rights with standard earn rates and redemption options and multiple connection options through the various partner airlines to get the passenger to their destination as quick as possible.

Ed Bastian (Delta's CEO) who has overseen year after year of profits even with Delta's old and inefficient equipment has started to undertake a shift away from Sky Team towards Delta having its own international network of partner carriers. Purchases in LATAM, Virgin Atlantic, partnerships with Virgin Aus,

Once a number of airlines gets all these issues sorted the alliances will be a thing of the past.

So my suggestion would be for Paul to talk to VA current alliances to renegotiate for a standardised level of service across all the partnerships, ramp up the pressure on Virgin Atlantic on a LHR to PER flight to compete with Qantas and provide more connecting domestic traffic and another way out for loyal VA customers. Speak to Air France-KLM about possibly switching sides for better European connections and get friendly with Ed Bastian on new ideas and reforms within the industry and potentially some Delta investment into Virgin Aus. (If Delta invests then the Air France-KLM partnership isn't as far fetched as it sounds)

 

[Melburnian1]

1) Fix Velocity now you have bought it. Fix the awful website / lack of IT integration with VA. Fix the awful apps. Find a way to join an alliance or iron out all the issues with the patchwork quilt one you have one right now. ..

7) Find a way to fly smaller planes profitably. Yes we know the ATR and ejet experience has been a blood curdling nightmare but it can’t be impossible. QFLink and Rex manage it. You will never be a full contender in AU without skinnier routes to secondary cities, you can’t make money by hauling heavy gas guzzling 737s in on heavily reduced frequencies v the competition...

8) Kill unprofitable routes straight away and just forget brand ego. Trans Tasman looking at you. Hong Kong. Suspect some Tasmanian services.

I've travelled on MQL - MEL one way: a weekday B738 that was about half full if that, One a day v QF and ZL smaller planes with greater frequencies than that, and three to five V/Line coaches a day that whenever I travel are full or close to it (plus rail further on at Swan Hill or Bendigo) means VA can't compete. One a day each way is no good for business day return trips. It seems a 'fill in' route for the aircraft, but surely must lose money.

The Velocity website is painful to use, and strangely has many omissions in its possible list of destinations. When one fills out online VA surveys after travel, the marketing department or whomever takes no notice.

 

[dajop]

Speak to Air France-KLM about possibly switching sides for better European connections and get friendly with Ed Bastian on new ideas and reforms within the industry and potentially some Delta investment into Virgin Aus. (If Delta invests then the Air France-KLM partnership isn't as far fetched as it sounds)

Agreeing with your concept of leaving alliances behind maybe LH group would be a better pick for Europe? AF/KL have only very recently inked a deal with QF (so AF/KL could be messy). Also they should be doing something with Vistara in India (unfortunately SQ are far too conservative to ever try and facilitate that deal, despite having 20% ownership of VA and 49% ownership of UK).

I think the problem with nearly all of the current "bespoke" alliances is they fall down in secondary ports. So you fly SQ metal as a VA WP/SG out of LAX? Sorry, no lounge access as SQ doesn't run a lounge there. Fly VA metal as SQ Gold/PPS out of LAX? Sorry, no lounge access as VA doesn't run a lounge there, and so an so forth across the partner network.

Maybe they should just do a deal with Priority Pass for WP's such that whenever they are flying a partner, they can access a PP lounge at the airport (if it has one). That might be a huge step up.

 

[Must...Fly!]

The other way to make money is to hike fares.

Seems like the standard getaway for a PER-MEL is now $309 (up from $299).

Flexi up to $679 from $665.

Increase prices and decrease frequency. Good way to send people to the other terminal

 

[Melburnian1]

The other way to make money is to hike fares.

Seems like the standard getaway for a PER-MEL is now $309 (up from $299).

Flexi up to $679 from $665.

This depends on demand elasticity. Some corporates or small business proprietors may need to travel whatever the fare, but there must be others that cease travelling or reduce the number of annual trips.

 

[clipped_wings]

I won't get too technical, because it's not my strongest area of expertise. But from my layman's perspective - the most successful entities in the corporate world are the ones who decided early on what they are and who they serve. Then they corner that market.

So I guess I'd say "Paul, choose the type of airline you want VA to be, mate. And be it. Better than anyone else."

 

[Major]

You need to sort out the websites. Virgin and Velocity need to be integrated and Tiger availability should also be shown.

If I am travelling at a meal time then I need a meal, not a snack.

I also agree with PaulllM ( Welcome to AFF ) regarding alliances. Individual airline agreements are the way to go.

 

[HS-TQE]

Get in a room with DL and UA and hammer out a deal that would preserve your DL alliance and at the same time allow you to enter star alliance.

Then you can all send a one fingered salute to QF/AA.

Chances of that are close to 0%.

Only way UA are getting involved is if they launched a bid for a stake themselves. That also being unlikely.

Scurrah did previously mention by singling out the USA routes as one of the few profitable routes in VAi.

UA from what I understand has taken the previous NZ's management alleged view of VA closing down all of VAi and be a NZ/* feeder which was soundly rejected by the remaining major shareholders during the Borghetti/Luxon scuffle.

Saying that there's likely to be more short haul VAi cuts, but Scurrah will want some serious money in the unlikely case of a competitor (that's not DL) wanting East Coast-LAX slots and/or the 77Ws.

 

[PaulllM]

You need to sort out the websites. Virgin and Velocity need to be integrated and Tiger availability should also be shown.

If I am travelling at a meal time then I need a meal, not a snack.

I also agree with PaulllM ( Welcome to AFF ) regarding alliances. Individual airline agreements are the way to go.

Thank for reminding me Major (cheers for the welcome)

Tiger - there is too much bad history attached to the Tiger name and a stigma that will take decades to reverse (if ever). I would be strongly pushing Paul to rename Tiger and re launch it with greater integration with the VA booking system (like Qantas does with JQ), provide some level of Velocity points and SC for flights (keep them low like 1-3 SC and .25 points dollar spent) but get more members into the Velocity cash cow and continue the present refocus on domestic leisure locations with a future plan for international flights into HKT, DPS and either LGK or PEN

Yes its a major cost to repaint planes, change signage, uniforms etc especially with the losses on the books but it's the only fighting chance i can see for VA to have a profitable and competitive answer to JQ unless VA winds Tiger up and drops down to compete with JQ in which case i'm going to have to deal with the snobbery at Qantas again.

 

[jakeseven7]

8) Kill unprofitable routes straight away and just forget brand ego. Trans Tasman looking at you. Hong Kong. Suspect some Tasmanian services.

SO pauly7, you clearly had a chat already to PS about Hong Kong and convinced him!

For my own personal reasons please don't talk to him about Tazzie flights, they are barebones already and I have flights booked!!

 

[HS-TQE]

Longer term Aust Govt policy needs to loosen up and allow the likes of Singapore, ANA , Virgin etc to come in here and fly Trans pacific etc by a capital ownership model of our second domestic airline.

The Australia-USA routes in general isn't the high yielding money making machine it was from years ago since many competitors entered in addition to diversifying outside of LAX.

Those expansions had since lowered yield on the Trans Pacific routes in general.
With SQ on record as not being happy with their VA stake for some time and stepping back from day to day operations of VA, any interest from SQ would be extremely unlikely.

As for fifth freedom between AU and the USA, that won't happen for the long term, if at all. The AU and USA bodies declined SQ's 5th freedom application back when it was only UA and QF on LAX only. In addition the AU government declined AC's 5th freedom application despite support from the USA side.

 

[flyingfan]

I would tell him I loathed the days of DJ and if he takes VA downmarket I wouldn't fly it again.

I'd say from my Velocity member perspective I love priority boarding, lounges not just being clones of QF's (but to fix the severely crowded SYD peak), pooling, J service and (until the recent reported downgrades which I haven't seen myself, not having flown VA recently) J food.

Add that I can't believe they lost the partnership with Air NZ.

I'd conclude by saying I'm willing to bet VA (or Tiger) isn't going to succeed in remotely threatening JQ, or QF's stranglehold because of inertia or firmly entrenched loyalty, but joining *A would probably tip a lot of AFF members over as these virtual alliances clearly aren't enough and start to force people to take you seriously. That's probably money better spent than on Japan... I hope they succeed but I'm pessimistic when HKG didn't.

And yes, fix the website - not everyone always uses a tablet, I want seamless integration between Velocity and the rest not new tabs all the time!!

 

[Maccaj73]

Join Star Alliance... how can you possibly say it’s a premium airlines when I can barely find any lounge or flight combination because no one knows who VA is? Intra Europe it’s almost impossible unless your on a very specific route with Alitalia or BA... that’s pretty poor...

 

[HS-TQE]

Join Star Alliance... how can you possibly say it’s a premium airlines when I can barely find any lounge or flight combination because no one knows who VA is? Intra Europe it’s almost impossible unless your on a very specific route with Alitalia or BA... that’s pretty poor...

As previously mentioned, *A have previously posted that they are no longer interested VA on the back of the NZ breakup.

VA still has the issue of their enemies at NZ and UA using their veto to block any (unlikely) VA application for the foreseeable future.
If anything there's a better chance of VA joining a DL led global alliance (separate from SkyTeam)

There needs to be considerable bridge mending between VA and certain *A members before they are even considered for membership again.

 

[Must...Fly!]

As much as an alliance might be desired, neither *A or ST is anywhere close to a realistic prospect. DL led new "alliance" would likely be the only possibility in the future imo.

 

[Airbumps]

As so many have said, you need to better integrate yourself with other airlines. Whilst I'd love you to joining *A, I understand thats unlikely to happen for a variety of reason. So, fix the relationships you've got!

Professionals want consistent entitlements like lounge access - we shouldn't need to go searching through the depths of the Velocity website to find a page that tells us what specific lounge I can use only to discover entry is only permitted on a crescent moon in the western hemisphere between the ides of March and the summer solstice....and even then only if the lounge dragon knows what a 'velocity' is.

That and fix your damn website...its an absolute embarrassment.

 

[dajop]

I would tell him I loathed the days of DJ and if he takes VA downmarket I wouldn't fly it again.

If you break the history into:
DJ 1.0 (Pre-Velocity) LCC
DJ 2.0 (After Velocity was introduced)- hybrid carrier
VA - Qantas Imitation era

I liked the DJ 2.0 era - it was a bit more innovative, and some of the features it had - like revenue linked earning of points, corporate type fares + basic type fares, etc have been adopted by many legacy carriers in the developed world.

The trouble VA has now, is that whilst it can easily create a replica Qantas experience, Velocity can never compete with QFF. Therefore, it can't command the market share, fare premiums and profitability that QF commands. Ergo it either needs to be happy with modest domestic profitability (and ditch the unprofitable parts of the business), or do something completely different altogether. I would not be surprised if it morphs more into a DL (/UA/BA/AA/LH/...) style carrier domestically, where your experience is dictated as much by the fare you pay as it is by your status.