VA halts plan for 737 lie-flat business class.

[33kft]

Is an overly friendly brand image an asset for an LCC? I think some degree of "clinical but cheap" would help get the message across and trim some of the fat off of the operation.

 

[pauly7]

Is an overly friendly brand image an asset for an LCC? I think some degree of "clinical but cheap" would help get the message across and trim some of the fat off of the operation.

Isn’t this what Jetstar does? I don’t see loads of friendliness come through their marketing apart from the smiling models in their uniforms in pictures. Jetstar seem to have cheap, cheerful (at best) and basic tied up so Tiger would need something else, all they are probably known for in AU is cheap but unreliable and unsafe I suspect, from the groundings and shut downs.

 

[33kft]

Jetstar would be my template for how not to do it. QF selling full service itineraries with JQ operated flights and people expecting mainline reliability and service. Better to be upfront and set expectations imho.

 

[moa999]

1. Go more premium with the Virgin Australia brand. They already have a great business class product, so the lie-flat J is probably unnecessary,

They just can't seem to get the premium in fares though, no matter what they do.
And I don't think joining an alliance will do much - they already have partnerships with the most relevant airlines.

But continually putting 737s on the Perth routes doesn't help, and neither did the removal of the (also rudimentary catering) on the flex fares (at a minimum they should have done a JQ voucher thing for those expensive fares)

 

[Saab34]

The Domestic business isn’t the issue. The underlying numbers are good, the product is good, the lounges are good and they have acceptable frequencies across the board. A lot of the finer detail mentioned above are not key issues.

The issues are Tiger, International and Fuel. And the big issue being overall the cost base minus fuel is too high.

Tiger at probably best will only be a 10-20m business. There are more risks than positives with this business. They have no ability whatsoever to claw back fuel movement. Jetstar has massive scale and monopoly in the space to offset it.

Tiger needs to be cut off, Virgin bring in the Delta Economy Light fare class sort of product to pickup some leisure pax. There would be a lot of upside for Jetstar obviously but I think Jetstar killed off Tiger about 10 years ago.

 

[jakeseven7]

The Domestic business isn’t the issue. The underlying numbers are good, the product is good, the lounges are good and they have acceptable frequencies across the board. A lot of the finer detail mentioned above are not key issues.

The issues are Tiger, International and Fuel. And the big issue being overall the cost base minus fuel is too high.

Tiger at probably best will only be a 10-20m business. There are more risks than positives with this business. They have no ability whatsoever to claw back fuel movement. Jetstar has massive scale and monopoly in the space to offset it.

Tiger needs to be cut off, Virgin bring in the Delta Economy Light fare class sort of product to pickup some leisure pax. There would be a lot of upside for Jetstar obviously but I think Jetstar killed off Tiger about 10 years ago.

Hmm I don’t think VA Domestic is smelling like roses and a bit generalistic to say it’s not a issue. But do agree that Tiger and International are much bigger issues for sure!

VA Domestic though is paying for the sins of Tiger and International - being the main concern. So VA are attacking domestic with cost cutting and capital delays to help save the business.

The problem with VA domestic as others have stated is they’ve allowed their cost base to creep up and at the same time cannot command a premium on fares because they are not viewed as a superior airline which is a dangerous place to be when so many of your costs are variable and out of control (fuel).

 

[Rigs]

VA Business product itself is already better than their local rivals. The food, service and seat are better and both domestic and international. The Qantas lounges are better but given how many planes I take I don’t really like to be in them. It not super urgent for them to build out better Business service in the short haul market.

 

[CPMaverick]

Have flown these lie flat 737 in the USA and a wonderful way to fly.

What US airline has a lie-flat 737 product?

 

[pauly7]

What US airline has a lie-flat 737 product?

JetBlue for one has lie flat but think Airbus narrow body

 

[Saab34]

So for the MAX10 if they were to keep the current Business Seats anyone think they will push for 8-12 seats or hold the 8 and just increase the Economy?

Obviously going to have such a large -10 Fleet we might even see a mix.