Tokyo Haneda slot - how will Virgin Operate it?

[Sprucegoose]

I would have thought that Jetstar would have responded with a flash sale for this route. I'm surprised that they haven't.

Indeed, I would say both QF and JQ could have responded at different price points. It is unlike those chaps not to flex market share muscle.

I understand QF intends to launch MEL-HND flights next year, which could be a further opportunity to squeeze the very good folk at VA.

 

[Sprucegoose]

I would have thought the JPN routes would have reasonable profitability with business traffic; VA limits itself with the hard (and soft) product with the current config of 8J seats (If that is the case) and therefore has pitched itself at the leisure market.

 

[AIRwin]

Do you believe the Company will name an aircraft with a destination theme to reflect the importance of the new route?

Guess we'll see closer to the delivery...

 

[dajop]

I would have thought the JPN routes would have reasonable profitability with business traffic; VA limits itself with the hard (and soft) product with the current config of 8J seats (If that is the case) and therefore has pitched itself at the leisure market.

I don’t think it’s limiting itself, if this is just a placeholder route until they work out what to do in the long term, as most suggest. It’s just investing in slots which would be difficult to get back, I suspect it as long as they cover the costs of operating the route the profit can come , (or not if they choose to relinquish the slots), later on.

It really doesn’t have a choice but to pitch at the leisure market right now. Easily to see three potential strategies;
A) Let QF have slots
B) Operate 73M, CNS-HND
C) Scramble to lease a wide body, train up staff, develop product etc within next 6 months to operate from a southern city to HND.

 

[BRIS_VA_HAWK]

1 flight per day, open it for 3-4 hours (post flight cleaning time) then maybe not on arrival unless that coincides with another takeoff to HND.

whatever, lounges are expected by many, especially if in Y. Gotta be brought back in CNS.

Considering the volume coming into CNS (~150 pax) I doubt it would be viable JUST for this flight. CNS airport website says that the Cairns Reef Lounge in the International Terminal is still closed...not sure how accurate that is though.
VA have 12-13 departures per day - hardly the volume to justify running their own. Probably better of giving J/WP pax a voucher for the food hall...

 

[Captain Halliday]

Further to the comments that CNS is a placeholder:

I’d forgotten that BNE publish long term schedules. I was reminded by a post in another thread so credit for this pickup goes to @henrus.

May 23:


I would also note MH has dropped BNE from the end of March, yet it appears here. So the accuracy should not be relied upon for any travel plans!

 

[pangwen]

Further to the comments that CNS is a placeholder:

I’d forgotten that BNE publish long term schedules. I was reminded by a post in another thread so credit for this pickup goes to @henrus.

May 23:
View attachment 311064

That's prior to the actual launch of CNS-HND though, so I'm not sure what to make of that?

 

[Captain Halliday]

That's prior to the actual launch of CNS-HND though, so I'm not sure what to make of that?

Indeed and I added an additional note to my post above - essential a caution that it’s highly speculative and may just represent further placeholders.

 

[Sprucegoose]

VA would be hoping to cash in demand for Japan

The people at Bain are not dills..........maybe the longer-term business case is supported by the Japanese visiting CNS, over or above Australian traffic ex CNS? I presume they all need to return home at some stage after swimming with sharks or whatever they do in CNS

 

[AustraliaPoochie]

Also, young Japanese who want to do the Aust WHV/W&HV, might want to start in CNS, and work their way down.
Though, to them SYD is the bees knees for most, so for some, they would fly ANA from HND to SYD.
But the ones who want to work on farms, would start with CNS, or work their way down to the fruit picking zones from there.
With Bain being idealistic LCC, they would probably price the fare coming down from HND quite low/bearable, to attract those interested in coming down.
If they wanted to, they could have leased an A350 if they wanted to, paint it in VA colours, and start the route from BNE to HND, but they chose the LCC model, ie, the 737MAX.

 

[AIRwin]

LCC model, ie, the 737MAX

Just like SQ which also serves CNS with the MAX

 

[AustraliaPoochie]

SQ is going that way too, trying to reduce cost, have read the related stories on here of recent experience of our colleagues flying out from MEL on SQ.
Seeing they have outsourced check in and baggage handling too.
My few trips on them in the 1990s were very good, also 2015 flight MEL - WLG before they stopped that route, but now... scary by the reading of it.

 

[Sprucegoose]

You know something is awry when out pops an NV Piper Heidsieck - that ought to be the canary in the coal mine.

The allegations noted by a number of members now are escalating my concerns that SQ standards have slipped and are continuing to decline considerably.

I am now conferring with my time managers so I can investigate this personally in the next few months and report back at the end of March.

 

[AustraliaPoochie]

OffT It turns out that a lot of SQ jobs are now outsourced.
Not sure what VA will do in HND, probably use the ground services as used by NH, to save cost.
SQ, seems now like meaning that they would do things at the minimum cost.
Likely that is when things go wrong, and there is no one to take responsibility.
On the one hand, the airline will say its the service providers responsibility, on the other hand, the ground handler will probably say its the airline's responsibility, as they are the ones paying.OnT.

 

[henrus]

When I was at Haneda earlier this year the VA boarding signs were sitting around in a corner. Exciting to think they'll be able to finally put them out!

 

[Bagpuss]

The people at Bain are not dills..........maybe the longer-term business case is supported by the Japanese visiting CNS, over or above Australian traffic ex CNS? I presume they all need to return home at some stage after swimming with sharks or whatever they do in CNS

Exactly and also if you read the Virgin Australia press release (and others) it's incentivized by a number of stake-holders.
I'm sure they are going to carry a bit of cargo and I don't think the Japanese are like Aussies with their A330 requirements.

A key cost saver is they they aren't procuring specialized aircraft and using their intended fleet. They should be at least breaking even year round. One way to look at it is that they may hold onto an older aircraft (VU*) which would have low leasing costs to cover the MAX use.

Hello Tokyo! Virgin Australia Launches First-Ever Cairns-Haneda Japan Service With Massive $699 Return Sale

newsroom.virginaustralia.com

 

[Pele]

Surely the biggest risk factor is they haven't taken delivery of the aircraft yet. Does anyone know when this is scheduled to occur?

 

[jase05]

Surely the biggest risk factor is they haven't taken delivery of the aircraft yet. Does anyone know when this is scheduled to occur?

First 4 starting to arrive in February

 

[Sprucegoose]

Surely the biggest risk factor is they haven't taken delivery of the aircraft yet. Does anyone know when this is scheduled to occur?

There are a range of risk factors that need to be assessed together and separately.

Ironically it was a Black Swan event that cruelled the initial start of their services

 

[AIRwin]

Ironically it was a Black Swan event that cruelled the initial start of their services

Blessing in disguise?