SRS BSNS: DJ to get a domestic J cabin

[notzac]

In a move that will shock and surprise exactly no one, DJ's new CEO has confirmed that a domestic J cabin will be a part of the "New Blue" strategy for the Virgin Blue group:

Virgin Blue Poised to Introduce Business Class for Better Margins; Borghetti Refutes 'Desk Clearing' Profit Downgrade - Wings Down Under

"Business Class will no longer be the exclusive province of Qantas", Borghetti said, confirming expectations Virgin will offer a dedicated business class. Presently the only Virgin Blue group airline with business class is long-haul subsidiary V Australia.

Also of note:

On the topic of alliances, Borghetti said Virgin will continue to remain independent and form individual strategic alliances where it sees fit, such as the pending joint ventures with SkyTeam's Delta for trans-Pacific flights (for which it expects approval by August) and Star Alliance's Air New Zealand for trans-Tasman flights. Borghetti qualified his statement, saying "our mind is not closed to other options."

Actually quite a decent read.

 

[markis10]

Should help lower J costs domestically.

 

[Must...Fly!]

Domestic J costs really are a bit of a joke, I mean, from Perth, booking J PER-WLG via SYD/MEL is cheaper than booking J PER-SYD/MEL

 

[markis10]

Maybe QF will respond with double SC's for all J travel in the next 3 months????????

 

[anat0l]

About time! And it had to take someone like Borghetti to make it happen...

It'll be good to see what shake up will be caused.

 

[Austman]

This should be great news for all QF FFers. It's direct competition that hopefully will restore QF domestic J class to what it once was. I hope they go full service in Y too. Bring it on!

 

[Standby]

About time! And it had to take someone like Borghetti to make it happen...

It'll be good to see what shake up will be caused.

One could argue Borghetti was largely responsible (as the QF head honcho) for the price it is today.
It will be interesting to see this play out.
A bold move but a real gamble too..Most Companies have banned dom J purely from a cost perspective. Dropping the price ,even to a margin above fully flexible fares , will still be out of the realm of BFOD policies out there.
Also Bold because it will add cost to DJs model.
Good luck if he can getit to work.
I still think DJ should aim at being the best Y cabin carrier (very subjective discussion which I'm not getting into).
The biggest risk to QF is DJ/NZ rationalising product which could easily be managed as BA do club Europe ...Pay a flex fare and get fed ,and forward seasting which has more pitch..Corp spend in volume in in the Y cabin.
As for timing remember QF spent a BOMB on First class lounges which the GFC crippled...anothe Borgetti move...hope his timing is right this time

 

[notzac]

Am personally looking forward to seeing what they come up with. When you think about domestic J/F products around the world, QF would have to be one of the best out there - possibly followed by some of the US carriers. Given that DJ will be starting with a clean slate, so to speak ... it's going to get very interesting!

 

[samh004]

Sounds good, cant wait for service to begin and prices to be released, then we’ll see what QF does and my travel might change

 

[Flying Fox]

Sounds like good news to me. I'm sure that QF aren't happy but its a win for consumers.

Not sure that prices will come down as its an oligopoly situation but at least there will be some choice.

 

[Mal]

Not sure that prices will come down as its an oligopoly situation but at least there will be some choice.

Yeah, I'm not sure prices will come down either.

Still, good to see competition for Qantas, and good to see DJ are finally doing something that people have been wanting them to do.

J isn't really a cabin I tend to fly in (esp. Domestic Australian), but I'll give the DJ product a look when it arrives.

 

[pauly7]

Sounds like good news to me. I'm sure that QF aren't happy but its a win for consumers.

Not sure that prices will come down as its an oligopoly situation but at least there will be some choice.

Finally DJ do something worthwhile!! Looking fwd to seeing what they come up with. Again my suggestion would be to TOP the QF offering not just offer a 'me too' product.

RE: Pricing response by QF...I do seem to remember them putting out more domestic D coded seats in response to Ozjet... For the 5 minutes those old birds were flying around...Anyone else recall that??

 

[Mal]

RE: Pricing response by QF...I do seem to remember them putting out more domestic D coded seats in response to Ozjet... For the 5 minutes those old birds were flying around...Anyone else recall that??

The Ozjet effect! (RIP pure J class travel in Oz!).

Yeah I remember it well. Of particular note was the D class fares for internal flights were only on the East Coast between the capitals.

Perhaps this time Qantas will react and slash J from PER. But I really don't think DJ introducing J will affect prices hugely over the medium term. Look at fares to the U.S. Have premium cabins on Qantas actually come down now that there is lots of competition on that route?

Have domestic Full Flex fares changed since DJ introduced PE and offered it at a small amount over full Y?

 

[pauly7]

. Look at fares to the U.S. Have premium cabins on Qantas actually come down now that there is lots of competition on that route?

Have domestic Full Flex fares changed since DJ introduced PE and offered it at a small amount over full Y?

US - nope, because QF are filling the cabins at that price. Why? Because they have a superior product.

Domestic full flex - nope again . Why? Because PE was a dismal product offering that no one understands and buys.

I think your good examples highlight my point DJ need to really go hard and offer a superior service and product to make a dent in QF strangelhold on Corp and premium travel.

 

[dk4]

Not sure how this will fit in to "metal neutral" Tasman flights with NZ...

Also Bold because it will add cost to DJs model.
Good luck if he can getit to work.

Unlike other posters, I think the degree of risk is too high, even without knowing the exact product details. I think that the chances of failure are too high. I predict JB out of a job within 24months!

 

[oz_mark]

Maybe QF will respond with double SC's for all J travel in the next 3 months????????

I think it will take more than three months for DJ to do whatever it needs to do to make it happen.

I doubt they will copy the QF business class, but will come up with their own style of business class. It's success may depend on how strongly it retains the LCC culture that made PE what it is today. I hope it is a good product, and it gets good support.

My fear is that people will just see it as 'yay competition, that will get QF prices down' and then continue to fly QF. Such people don't deserve competition.

 

[markis10]

I think it will take more than three months for DJ to do whatever it needs to do to make it happen.

I agree, that 3 months will probably start next June when the new aircraft hit the fleet with a cabin reconfig incorporated, by then the kinks in the new systems will have been ironed out and status pax will already be seeing the recognition they deserve.

 

[notzac]

...It's success may depend on how strongly it retains the LCC culture that made PE what it is today...

Well I sure hope that DJ loses whatever it is that made PE what it is today - the best load factor I've ever seen in PE is maybe 30%; in my limited experience, more often than not it's completely empty. And empty seats earn no revenue.

My fear is that people will just see it as 'yay competition, that will get QF prices down' and then continue to fly QF. Such people don't deserve competition.

What, like a few of the posters above? Well, I guess it will be v interesting to see what happens over the course of the next 18-24 months..

 

[Dee Thom]

Well I sure hope that DJ loses whatever it is that made PE what it is today - the best load factor I've ever seen in PE is maybe 30%; in my limited experience, more often than not it's completely empty. And empty seats earn no revenue..

I think DJ will only apply the J seating to aircraft on the ' Main City' routes, all others should be an all Y class, a bit like QF on the Mains, and JQ on Leisure.
DJ's J class will have to be an upmarket version compared to QF's, or it won't work.
If I was J.B. I would concentrate on making my Y class the best product in the Aus sky, for the best available price (forget TT)

Cheers Dee

 

[oz_mark]

If I was J.B. I would concentrate on making my Y class the best product in the Aus sky, for the best available price (forget TT)

I think he will have a multi-pronged approach, and would love to see their Y product improved. I'm sure he will do something - after all, one thing he is good at is extracting the premium prices from flyers, which is something QF benefits from to this day.