VA Running low on Cash?

[Supersonic Swinger]

Re: QANTAS's domestic sale(s)

I don't know that alliance membership would be of much help to an airline in financial difficulty:

- membership certainly didn't help Ansett, Varig, Spanair (Star) Malev or Mexicana (OW) when they lurched into bankruptcy
- unlike OW (which is operationally the loosest alliance), Star and SkyTeam charge member airlines exit penalties if they decide the alliance isn't working out for them, Star's being the highest
- when Continental left SkyTeam for Star prior to the merger with United, it's executives have admitted that they underestimated the costs and overestimated the benefits of Star.

I don't know that membership of Star or SkyTeam would provide VA with much of a net financial benefit over and above what their current partner arrangements provide.

 

[lovestotravel]

Re: QANTAS's domestic sale(s)

Are you sure? From what realistic evidence?

Yep I am sure.

The financial results speak for themselves, and the fact that SQ and others need to provide more cash, because VA is running low on cash.

 

[notzac]

Re: QANTAS's domestic sale(s)

All very second rate airlines IMO.. to say the least..

I don't know so much about the other SkyTeam airlines, but Delta have been fantastic for me - mostly on time, pleasant ground and cabin crew, good at service recovery when something goes wrong and a relatively decent safety record.

 

[DeKa]

Re: QANTAS's domestic sale(s)

There seems to be way too much capacity. I just looked at a quick trip to ADL next week for 2 days.
QF - mostly high priced Red e-deals (ie $200ish each way) or flexi saver.
VA - every single flight has $120ish Saver Lite available and as a result they are at least 40% cheaper than Qantas.

 

[samh004]

Re: QANTAS's domestic sale(s)

There seems to be way too much capacity. I just looked at a quick trip to ADL next week for 2 days.
QF - mostly high priced Red e-deals (ie $200ish each way) or flexi saver.
VA - every single flight has $120ish Saver Lite available and as a result they are at least 40% cheaper than Qantas.

That could mean that QF has already sold all their cheaper fare buckets, so is already in a better position on those flights. Or it could mean VA are dropping their prices to sway customers, but how low do you go before you run into trouble?

 

[Must...Fly!]

Re: QANTAS's domestic sale(s)

That could mean that QF has already sold all their cheaper fare buckets, so is already in a better position on those flights. Or it could mean VA are dropping their prices to sway customers, but how low do you go before you run into trouble?

Exactly

One might surmise that they are keeping fares lower in order to get more cash flowing through.

 

[Moopere]

Re: QANTAS's domestic sale(s)

I don't know that membership of Star or SkyTeam would provide VA with much of a net financial benefit over and above what their current partner arrangements provide.

Im my view it builds their brand and further provides the 'halo' effect that Borghetti speaks about in relation to their decision to provide J class domestically.

For example, I can't find any good reason at the moment to focus my efforts upon VA when travelling overseas .... I add them to the mix of course, but as a VA Gold I'd have thought it would be well worthwhile providing me reasons to stay shopping with them. Other recent threads have alluded to the same thing, there is virtually no tangible benefit to a status (or other) holder in booking through VA to gain access to their wider partner network ... one is almost always better off, or least as well off, by going to those partners directly.

 

[Deleted member 29185]

Re: QANTAS's domestic sale(s)

I can't find any good reason at the moment to focus my efforts upon VA when travelling overseas .... I add them to the mix of course,

This is my sentiments as well. I can't for the life of me see much value in VA int. My last USA trip (pre the partners) was with QF and AA and I have no status with either of them, but they provided me with about the same value (I bought AA lounge access pretty much just for a shower) and a seamless experience (even down to a really great curbside guy sorting my overweight cases and through checking them to BNE from MIA saving me about US$100 in overweight charges). Given I was on separate bookings, I was pretty impressed. Whether I'd have managed that with VA and partners, I'm unsure.

 

[grubbidok]

Re: QANTAS's domestic sale(s)

For example, I can't find any good reason at the moment to focus my efforts upon VA when travelling overseas .... I add them to the mix of course, but as a VA Gold I'd have thought it would be well worthwhile providing me reasons to stay shopping with them. .

That's if one or more of their partners even service the route. I've had 3 international sectors this year alone where I booked on QF and OW for no other reason than they actually went to where I wanted to go. Would have done VA in a heartbeat if they had partners on that route. Without a proper alliance there are just way too many holes to ever consider VA internationally.

 

[Simo]

Re: QANTAS's domestic sale(s)

VA's cash position will be interesting but sometimes a business has to do some big cash injections to move forward.

 

[Melburnian1]

Re: QANTAS's domestic sale(s)

EY has recently increased its shareholding and allegedly wants to move to 19.9 per cent.

For cultural reasons (I like pork!), I'd like to see SQ or NZ own VA.

Although a confirmed VA patron and one who avoids QF and JQ like the plague, I agree that VA's cash position is not good.

That said, these foreign airlines must see something in VA that I do not.

I also agree that the Australian domestic air market has way too much capacity. On a route such as ADL - MEL remarked on above, one can drive, travel on 'The Overland' daytime train, V/Line 'Daylink' coach via Bendigo (or with a change via Ballarat), overnight Firefly/ Greyhound bus if one has the time and inclination. Of course, air travel has a dominant share, but my point is that surface travel alternatives are easily available (though the train and bus are not fast, as the rail route is now somewhat indirect despite the way 'The Overland' hikes at 115kmh between stops and buses make two half hour refreshment stops at roadhouses - not haute cuisine) and so the route has a high degree of demand elasticity in terms of air travel.

JQ once flew ADL - AVV - ADL daily but could not make this relatively short route pay, so it withdrew.

Put simply, for leisure travellers who the airlines need to fill the seats at the back of the 'bus', if the air fare goes up too much some may either not travel or use a surface mode. That said, there's always TT....