New Virgin CEO

[Must...Fly!]

I would be very happy to see Virgin joining SkyTeam.

Honestly I think losing SQ would be a worthwhile price to pay. They don't seem committed beyond having a foot in the AU domestic door as they always have tried to do.

 

[RAM]

The thought of not being able to access SIA F through VFF points earn nearly knocked me down!

Now that Q looks to be contemplating removing the Emirates shackles - a re-think of VA's strategy is long overdue.

The question is will they end up falling foul of the Ansett issue - fractured ownership and capital starvation due to competing agendas?

VA does have a relatively better fleet situation (fewer models to deal with) but whether they have the funds to update their B777s to the seemingly on-time new B777s to gain a huge cost advantage could be the game changer/final straw depending which way it goes.

The cargo carrying ability of the B777 vs the A380 is such a revenue enhancer that Q has forgone for over ten years yet VA never really seems to have been able to capitalise given its small B777 fleet and ownership issues.

Here's hoping otherwise the thought of VA's possible demise to leave Q as the monopoly beast once again is the cause of nightmares.

 

[Must...Fly!]

There is room for two full service domestic airlines in Australia. Virgin's financials have pointed to that, particularly since the capacity war ended. But this constant board room battleground and trying to appease different owners and agendas is, as you indicate, a huge issue. That said, I agree and hope we don't end up with Virgin disappearing - that is in no FF's interest. I would almost rather SQ disappear out of the frame, I really don't know where they fit in an ownership/equity stake. Codeshare arrangement sure, but why own part of the airline? They compete directly in to HKG and China with many one-stop options out of SYD and MEL (though granted VA isn't much of a competitor).

DL and EY on the other hand make a bit of sense as at least geographically separated, though the latter has it's own issues. Again, I would be hopeful a codeshare and reciprocal FF arrangement would remain if EY felt no other option but to get out.

Many what ifs!

 

[dajop]

There is room for two full service domestic airlines in Australia.

That's an interesting point. One could point to what has happened in other western countries and suggest there is no room for one, let alone two, completely full service domestic carriers. Of course that depends on what you define as full service! Traditional "full service" carriers in many countries have gone down the path of restricting service (such as luggage, catering) based on fare paid (eg, BA, AF, LH, KL, SK, AA, DL, UA, AS, NZ, AC), in a way that QF hasn't and in fact VA moved in the opposite direction to the global trend.

 

[Must...Fly!]

That's an interesting point. One could point to what has happened in other western countries and suggest there is no room for one, let alone two, completely full service domestic carriers. Of course that depends on what you define as full service! Traditional "full service" carriers in many countries have gone down the path of restricting service (such as luggage, catering) based on fare paid (eg, BA, AF, LH, KL, SK, AA, DL, UA, AS, NZ, AC), in a way that QF hasn't and in fact VA moved in the opposite direction to the global trend.

It's surprising, I actually also agree with your post and sentiment. But both VA and QF have managed to move the really deep price wars to LCC subsidiaries quite successfully, though VA are just at the beginning of that journey and still trying to figure out fleet options and balancing. As much as I think their heavy use of leasing QQ aircraft is stupid, maybe it does buy them time to figure out how they are going to tackle the next phase of fleet and staff balance against the environment and routes they want to pursue.

New CEO has a lot on the plate, that is for sure.

 

[get me outta here]

Agree, esp after transferring a few 1000 VAs to SQs recently to do more Fs.

The thought of not being able to access SIA F through VFF points earn nearly knocked me down!

 

[Major]

This guy has had more jobs than I've had hot dinners. If he continues at this rate he will be gone by Christmas.

VA has been around for the last 20 years and has only had 2 CEOs. They need someone who will stick around for the long term to continue strong leadership as well as a plan for the future.

 

[melb78]

after reading what the chairperson said that they had many aviation CEO put in for the role they stuck with this choice as he had the right skills and qualities for the job. leads see

 

[HS-TQE]

Technically correct. The one thing to consider is that JB rubbed a lot of people up the wrong way and NZ was one spectacular example of that. There was clearly a personal issue in that relationship. With JB finally removed, it could open the door for a reset at some point on some level... stranger things have happened!

It will be a long while before NZ gets along with VA again. Whilst both Luxon and JB had egos, Luxon at least backed his up with performance. However Luxon also failed to keep his ego in check while making his case to oust JB.

Luxon's belief that VA should "give up all international" and feed into his airline (NZ) had ticked off all of the other VA shareholders (VA's complicated shareholder list had competing interests internationally and domestically), tipping the scales in favour of JB at the time.

 

[dajop]

But both VA and QF have managed to move the really deep price wars to LCC subsidiaries quite successfully, though VA are just at the beginning of that journey and still trying to figure out fleet options and balancing.

Yes, it remains to be seen if TT will be successful for VA in the way JQ has been for QF in managing the price sensitive end of the market, whilst still driving additional revenue. It took some years to refine the JQ model, but QF have been quite clever with JQ in not completely excluding it from the overall QFF framework - with lounge access and points bundles available - but it TT is still excluded from Velocity, and thus seems to a purely low cost play.

 

[Isochronous]

VA should join Star ASAP. SkyTeam is a cough alliance.

 

[HS-TQE]

VA should join Star ASAP. SkyTeam is a **** alliance.

No longer possible as of the moment. 'Sworn Enemies' NZ and UA will block any VA entry using their veto rights.

SkyTeam is VA's only choice available to them, especially through their relationship with DL, VS & co in SkyTeam.

 

[serfty]

QF have been quite clever with JQ in not completely excluding it from the overall QFF framework - with lounge access ...

Note that in its early days Jetstar provided no lounge access for SG/QP (WP had 'anytime').

 

[dajop]

No longer possible as of the moment. NZ and UA will block it using their veto rights.

SkyTeam is VA's only choice available to them, especially through their relationship with DL, VS & co in SkyTeam.

Contrary to popular belief, VS is not currently a member of Skyteam, despite being 49% owned by DL (and soon 31% by AF/KL).

I am not convinced that an alliance is necessary for VA, it should be courting both Skyteam and Star Alliance carriers that fly to Australia, as partner of choice, although its ownership structure probably prevents them from seriously courting the Asian Skyteam and Star carriers that fly to Australia .... MU,CI & CA (Hainan wouldn't like that) , AI, TG, VN & GA (SQ wouldn't like that). Sort of leaves NH, OZ and KE ...

 

[dajop]

Note that.im its early days Jetstar provided no lounge access for SG/QP (WP had 'anytime').

Yes as I said, it took some years to refine the model. Early on as well, if you were on a Jetstar flight that was cancelled or delayed significantly all you got was a one fingered salute. Now they sometimes do use (if possible) the broader QF network to deal with such things (although not always ).

 

[Bibendum]

VA should join Star ASAP. SkyTeam is a **** alliance.[/QUOTE

Amen brother