Qatar Airways to acquire 25% of Virgin Australia

[SCM]

Yeah, they probably could have left that off for now and work out something later. Even if they kept EY and the others they could offer half status credits or something on EY/SQ etc and then let the frequent flyers make up their mind. Or they could simply tear up any partnerships in a few months time. You can’t force someone to be partners, always a way out

Ultimately they will change their mind if and only if they think it will cause many FFers to leave them. Unfortunately, I don't see any way for them to know until it's too late.

 

[elanshin]

Ultimately they will change their mind if and only if they think it will cause many FFers to leave them. Unfortunately, I don't see any way for them to know until it's too late.

Not necessarily, if Bain can see this as a grest deal to offload and then attract other investors for the remainder of the company, they wouldn't need to care what happens to VA in the future 3-5 years down the track when they're done.

Bain's interest are not the same as the longer outlook for Virgin Australia and it's flying members.

 

[MooTime]

Ultimately they will change their mind if and only if they think it will cause many FFers to leave them. Unfortunately, I don't see any way for them to know until it's too late.

Exactly, virgin have stated they listen to their customers.
Like so many would've provided feedback to devalue the program, half or less the SC accrue on domestic & int.
Remove many elites to free up the lounges only to hand out full year lounge access to AMEX platinum velocity card holders.
Yeah haven't seen a survey since these changes asking for opinions, ah no why do that?

 

[Harrison_133]

Yeah haven't seen a survey since these changes asking for opinions, ah no why do that?

There has already been targeted surveys about the changes.

 

[justinbrett]

And from that article possible explanation as to why VA is changing Velocity.

“Adding long-haul services to Virgin’s limited domestic and short-haul network will improve the appeal of its Velocity frequent flyer program and … close that gap with Qantas,” says Jarden’s Jakob Cakarnis.

Funny, for an extra 4 QR services, they are significantly devaluing the Velocity both in terms of earning/redemption rates, and removal of partners and perks.

I think they might have this wrong. You could possibly argue it makes VA the airline slightly more attractive, but not Velocity. That’s the big loser in this.

 

[jase05]

Yeah haven't seen a survey since these changes asking for opinions, ah no why do that?

Received a survey a couple of days after the changes were announced. I’m relatively comfortable with the changes and gave suitable feedback

 

[MooTime]

Received a survey a couple of days after the changes were announced. I’m relatively comfortable with the changes and gave suitable feedback

Yeah cool. That's good.
I know your a genuine high flying in J, you deserve the new WP+.
I'm just speaking in general, will be less status which overall is a good thing absolutely, but to hand out yearly lounge access in other easy ways is hypocrisy & counter intuitive imo.

The whole DSC play by both airlines just fills the lounges with half coughed status holders. Guilty me yes at times. Many Qantas WP should only be SG, hence filling up the first lounge. Just ditch the DSC offers imo, but they won't cos of the immediate cash injection, never mind the lounge consequence there.

 

[jase05]

Yeah cool. That's good.
I know your a genuine high flying in J, you deserve the new WP+.
I'm just speaking in general, will be less status which overall is a good thing absolutely, but to hand out yearly lounge access in other easy ways is hypocrisy & counter intuitive imo.

The whole DSC play by both airlines just fills the lounges with half coughed status holders. Guilty me yes at times. Many Qantas WP should only be SG, hence filling up the first lounge. Just ditch the DSC offers imo, but they won't cos of the immediate cash injection, never mind the lounge consequence there.

I’m definitely not happy with every aspect of the changes and think there is a chance they may tweak the program further to get the balance right

 

[MooTime]

I’m definitely not happy with every aspect of the changes and think there is a chance they may tweak the program further to get the balance right

If you don't mind, what specifically don't you like with the changes, just 1 point. As a frequent flyer?
It would be quite something for VA to come out & revise part of the changes.

 

[Bagpuss]

Maybe they should have just kept status quo until they had the keys and then tear up the other partnerships

It's pretty likely that during negotiations for Qatar to purchase 25% they also wanted to be the exclusive partner airline.

Therefore, they've had to put this into the application.

That said, if the ACCC disagree to anything then it's down to Qatar and Virgin Australia and Bain to agree on such changes / conditions.

You never know, Virgin Australia and or Bain may have preferred to not tear up the existing partnerships with the investment.

 

[elanshin]

You never know, Virgin Australia and or Bain may have preferred to not tear up the existing partnerships with the investment.

That would likely be the case, it's not like they want to rip it apart, but for the purposes of getting QR onboard they're being asked to do so.

 

[justinbrett]

That would likely be the case, it's not like they want to rip it apart, but for the purposes of getting QR onboard they're being asked to do so.

But since there was no requirement to put that in the application - could even be some 4D chess being played.

QR has asked VA to go exclusive, VA doesn’t want to, VA unnecessarily puts it in the application, ACCC says exclusivity is a problem, VA tells QR it can’t go exclusive, QR invests anyway.

 

[oz_mark]

But since there was no requirement to put that in the application - could even be some 4D chess being played.

QR has asked VA to go exclusive, VA doesn’t want to, VA unnecessarily puts it in the application, ACCC says exclusivity is a problem, VA tells QR it can’t go exclusive, QR invests anyway.

I would have thought that they would have to disclose any exclusive dealing arrangement.

 

[Bagpuss]

VA unnecessarily puts it in the application, ACCC says exclusivity is a problem

The ACCC application was jointly submitted by Virgin Australia and Qatar Airways.

But the rest of your comment is probably accurate.

 

[justinbrett]

The ACCC application was jointly submitted by Virgin Australia and Qatar Airways.

But the rest of your comment is probably accurate.

I’m sure VA was the lead on that document

 

[Bagpuss]

I’m sure VA was the lead on that document

Don't think so, otherwise it would be VA formatting.

https://www.accc.gov.au/system/files/public-registers/documents/Application%20Received%20-%2001.10.24%20-%20PR%20VERSION%20-%20Virgin%20Qatar.pdf?ref=0&download=y

 

[justinbrett]

Don't think so, otherwise it would be VA formatting.

https://www.accc.gov.au/system/files/public-registers/documents/Application%20Received%20-%2001.10.24%20-%20PR%20VERSION%20-%20Virgin%20Qatar.pdf?ref=0&download=y

It’s Gilbert and Tobin, an Australian law firm.

 

[eastwest101]

It’s Gilbert and Tobin, an Australian law firm.

If I'm not mistaken Gilbert & Tobin have acted on behalf of Virgin Australia for quite a while, but also have had Qatar Airways as their client?

 

[dajop]

but to hand out yearly lounge access in other easy ways is hypocrisy & counter intuitive imo.

Following the US. They hand out status to hotel and airline passengers on the back of cereal packets. But hotel chains seems to be the worst offenders - and this is resulted in Titanium being the new silver, and lounges which are closed on Fridays and Saturdays, charge for alcohol and the idea of complementary food during happy hour is a big bowl of corn chips.

 

[MooTime]

Following the US. They hand out status to hotel and airline passengers on the back of cereal packets. But hotel chains seems to be the worst offenders - and this is resulted in Titanium being the new silver, and lounges which are closed on Fridays and Saturdays, charge for alcohol and the idea of complementary food during happy hour is a big bowl of corn chips.

Thanks for that info.
We do copy plenty the yanks throw up (literally), just not sure Aus ready for that change, I'm spewing!