Qatar Airways to acquire 25% of Virgin Australia

[elanshin]

Sorry I’m really confused: are you saying 1. VA should just lease a few wide bodies and enter the international market “with conviction” or 2. they shouldn’t even bother trying and just be happy being Australia’s 2nd domestic airline because they have “no conviction” or 3. the VA/QR wet lease should be allowed forever because VA has “no conviction” and so we should just let QR get what they want?

I think we can all agree 1 is high risk and not going to happen under Bain ownership and 2 which is the status quo and is worse for consumer than what’s being proposed. Option 3 seems to suggest that the international operation is commercially sustainable which suggests it wouldn’t be a problem to transition to VA’s own operation in the same JV setting?

2. They shouldn't even bother if they're relying on QR to under wet lease only conditions. Everything in this case relies completely on QR and how QR is doing if VA themselves have no real purpose and plan to fly Int'l.

I dont mind having more QR flights, but lets be honest thats exactly what this is with VA being the middle man in a wet lease only agreement.

 

[ben95]

Everything in this case relies completely on QR and how QR is doing if VA themselves have no real purpose and plan to fly Int'l.

That is very true, though I think this is more of a business decision. On face value even with VA being just a QR proxy it’s hard to argue against the fact that more flight is good for consumers.

Alternatively the government can just sign an open sky or expand the bilateral with Qatar - I’d be fine with that as well. Though I’d like to see VA at least being incentivized/pushed/forced in some way for a chance that we’ll get a 2nd international airline based here in Australia. Worst case is that this doesn’t work out, the wet lease gets terminated, the government declares defeat and expand the Qatari bilateral, and VA goes back to being a domestic airline. At least we can then say we’ve given it a go.

 

[JessicaTam]

[mod hat]
Off topic posts have been removed. Again.

Further attempts to drag this thread from the actual topic will result in infractions.
[/mod hat]

 

[N860CR]

I would say VA dropping HND speaks volumes about their real intentions in the widebody Int'l market.

If they were serious, they wouldn't have dropped it and asked for a dry lease.

Timing is the issue. They can’t use wet leased aircraft for HND and it’ll take a long time before they can operate their own.

That said, I don’t think the HND slot is the golden goose we’ve been led to believe. Japan is saturated and outbound tourism is simply not recovering to pre-covid levels. JL/NH are flying half empty planes to and from Sydney. Maybe Brisbane would do better? Maybe not. I wouldn’t be rushing into a new wide body operation for the sake of saving a slot at HND.

 

[ozstamps]

Will be interesting if there are any decent fare sales when this kicks off. Seems like Europe for $8000 rt ex SYD is about the lowest offered right now.

And we can only pray somehow they get the First Class lounge access for Plats in DOHA buried in the new deal terms as occurred with Etihad.

 

[jase05]

And we can only pray somehow they get the First Class lounge access for Plats in DOHA buried in the new deal terms as occurred with Etihad.

Would be willing to bet there is absolutely zero chance of that happening.
QR like to keep it exclusive so QR Platinum or F class only as it should be

 

[ozstamps]

I'd have bet they'd never have swung it with Etihad either, but it all came to pass as we saw. Used it many times, and a huge plus.

As with all things in business, it depends on what gets asked for in negotiations in new Marriages/Alliances ... and how good they are at asking.

 

[jase05]

I'd have bet they'd never have swung it with Etihad either, but it all came to pass as we saw. Used it many times, and a huge plus.

As with all things in business, it depends on what gets asked for in negotiations in new Marriages/Alliances ... and how good they are at asking.

In all honesty I hope they don’t TBH. There is something special about having access to the Al Safwa and I’d hate that opened up to to every Tom, Dick and Harry.
Some lounges should remain exclusive IMO

 

[odysseus]

On the topic of lounges, wonder if they'll stick with their 'no international lounge access policy for VA flights'...