Virgin Australia Financially Secure? [Now in Voluntary Administration]

[hydrabyss]

Which on the flip side creates a very interesting and not at all positive scenario for an airline that owns most of their fleet. Like Qantas.

I guess that is why they got in early and borrowed against some why they could.

 

[cove]

Qantas will need to raise capital too so it isn’t just VA Mark 2.
Singapore Air raised a lot and they have just parked 4 A380s out in Alice I believe.

 

[hydrabyss]

Qantas will need to raise capital too so it isn’t just VA Mark 2.
Singapore Air raised a lot and they have just parked 4 A380s out in Alice I believe.

My hope is Virgin is bought by someone like BGH Capital then making it an Australian owned again allowing the Government to help them and Qantas through the next 6-12 months.

 

[33kft]

Singapore Air raised a lot and they have just parked 4 A380s out in Alice I believe.

Slightly different scenario given SIA have no domestic service - and even if they did, the difference between Singapore's current situation re COVID-19 and ours is stark. They're effectively at the top of their curve (or so it seems, they've changed reporting standards so it is hard to judge) and have no domestic flight service whilst we're at the bottom of ours and gradually increasing domestic flight volume and even perhaps trans-tasman.

 

[Spongbob]

May i kindly ask does VA fares normally gets more expensive than a comparable QF fare? or the reverse?

The VA and QF fares were about the same, or different by $20 or so.
The time and effort required by me to chase a VA fare with the corporate TA for no real difference was not worth it.

 

[tomlee1986]

The VA and QF fares were about the same, or different by $20 or so.
The time and effort required by me to chase a VA fare with the corporate TA for no real difference was not worth it.

If it is the same... I personally would be more loyal to QF... just personal opinion I think... I have nothing against VA but just personal choice lol

 

[HS-TQE]

Indigo Partners, a large LCC comglomerate that owns Frontier in the USA and co-owns Wizz Air in Europe are understood to throw their hat in the ring for VAH.

As stated in article, if successful, Indigo initially plans to make VA Mk II a domestic only LCC.

Source (ET): Low-cost Wizz Air, Frontier backer has Virgin Australia in its sights

 

[tomlee1986]

I would support any good proposal as a general public which can save VA to keep flying in the skies... even if it is LCC... but I hope the velocity scheme could be used if the LCC model is used

 

[MARTINE]

Indigo Partners, a large LCC comglomerate that owns Frontier in the USA and co-owns Wizz Air in Europe are understood to throw their hat in the ring for VAH.

As stated in article, if successful, Indigo initially plans to make VA Mk II a domestic only LCC.

Source (ET): Low-cost Wizz Air, Frontier backer has Virgin Australia in its sights

Hi everyone . Here is my recent velocity redemption experience . Had half a million points so decided to cash in some fearing the stampede- 13/4 Easter Monday - ordered household goods/luggage and some other items -about 12. Thank God I printed the confirmation whilst in my account. NO confirmatory email/could not find my order in my account (other than points gone). Today two items arrived !! Ten to go. I really did not expect within the two weeks quoted . Ten to go!!

 

[tomlee1986]

Hi everyone . Here is my recent velocity redemption experience . Had half a million points so decided to cash in some fearing the stampede- 13/4 Easter Monday - ordered household goods/luggage and some other items -about 12. Thank God I printed the confirmation whilst in my account. NO confirmatory email/could not find my order in my account (other than points gone). Today two items arrived !! Ten to go. I really did not expect within the two weeks quoted . Ten to go!!

I am surprised you got that many points to spend/burn... but I hope you enjoy the products as they come to you

 

[travel_bug]

Indigo Partners, a large LCC comglomerate that owns Frontier in the USA and co-owns Wizz Air in Europe are understood to throw their hat in the ring for VAH.

As stated in article, if successful, Indigo initially plans to make VA Mk II a domestic only LCC.

Source (ET): Low-cost Wizz Air, Frontier backer has Virgin Australia in its sights

The thought of another LCC just put chills down my spine, particularly since Frontier Airlines fares at times don't even include carry-on. If that article comes to fruition I anticipate less of a VA Mk II and more of a Tigerair Mk II

Apart from the obvious benefits in keeping at least some VA staff employed post JobKeeper, what would another LCC actually do for competition in Australia? Qantas would still end up with a full-service monopoly by getting VA customers who didn't choose their carrier based on who was cheaper (though from a Canberra perspective, there were many times when Virgin was cheaper than Tiger's base fare for a Friday-Sunday return ticket).

 

[travel_bug]

Hi everyone . Here is my recent velocity redemption experience . Had half a million points so decided to cash in some fearing the stampede- 13/4 Easter Monday - ordered household goods/luggage and some other items -about 12. Thank God I printed the confirmation whilst in my account. NO confirmatory email/could not find my order in my account (other than points gone). Today two items arrived !! Ten to go. I really did not expect within the two weeks quoted . Ten to go!!

Have you had a look at this thread? Your experience may help others who have made similar large velocity redemptions and are wondering on the status of their purchases

Is it Time to transfer/withdraw points from Velocity?

Hi All, I need some advice from the brains trust on this forum. I, like many on here, have hundreds of thousands of points sitting with velocity. With the current COVID-19 situation and virgins financial position I’m concerned that if the airline was declare bankruptcy points may disappear...

www.australianfrequentflyer.com.au

 

[jase05]

The thought of another LCC just put chills down my spine, particularly since Frontier Airlines fares at times don't even include carry-on. If that article comes to fruition I anticipate less of a VA Mk II and more of a Tigerair Mk II

Apart from the obvious benefits in keeping at least some VA staff employed post JobKeeper, what would another LCC actually do for competition in Australia? Qantas would still end up with a full-service monopoly by getting VA customers who didn't choose their carrier based on who was cheaper (though from a Canberra perspective, there were many times when Virgin was cheaper than Tiger's base fare for a Friday-Sunday return ticket).

Yep, shudder to think of a LCC, would definitely lose my patronage and force me over to the dark side

 

[hydrabyss]

Yep, shudder to think of a LCC, would definitely lose my patronage and force me over to the dark side

I doubt a company like them would get creditor approval to purchase seeing as Virgin it is not inline with other airlines they own. Everything I have read points to a full service airline going forward. If a LCC was what would have been profitable why did Tiger not do so well.

 

[ric_melb]

The thought of VA becoming a LCC fills me with shudders. I believe the time for it to revert to a LCC has long gone.
I believe VA-2 will be far better focussing on being similarly full service as it has been, with perhaps some frills being cut out. Its should focus on cost cutting, probably cutting out all overseas routes, other than maybe USA. It should withdraw from unprofitable routes. Furthermore if it wants to attract regular business and flyin/flyout customers I believe it needs to maintain its lounges.
Another thing is the Velocity scheme. There are 10 million members. It has associated partners, including credit cards and flybuys.
Do we really think the people accumulating points want to use them flying a Tiger-2?

 

[Mr Pumblechook]

Haven't the last 8 years taught us that the corporates that matter are wedded to QFF and won't fly on something similar or even slightly better? A VA that's less convenient and less comfortable than before, but priced above the JQ fares that earn QFF points... won't we be back here again in 10 years?

I'm a WP of 7 years but I think the game's up. A Tiger 2 (or would it be 3?) run by Indigo is the way to go.

 

[jpp42]

I love Indigo. They are LCC, sure, but they are also super flexible with excellent customer service - different from the previous LCC model where they seem to be angry at their customers at all times. They have taken a huge amount of business away from the full service carriers to the extent that Jet Airways collapsed (and I would guess others during COVID-19, although I haven't been following Indian aviation recently). They are operating in a different market that is more price conscious than Australian business, but what that means is that if you do have a bit more cash, you can upgrade yourself with their various perks and get equivalent to full service with some elite-like benefits (seat choice, priority baggage, priority check-in, extra baggage allowances, etc). Only thing they don't have is a lounge but I could see that as an easy add-on in Australia given how popular they are. They also do not have business/first class but I really think that is unnecessary for the Australian east coast market (in reality), where it may be more problematic is Perth/Darwin services.

 

[dajop]

There is absolutely nothing stopping, other than aggressive marketing or adoption of the same business model by QF, of VA offering LCC and full service within the same aircraft. This is the modus operandi of legacy North American and European carriers. In North America, you can get Jetstar service on AA, DL or UA by simply purchasing a "basic economy" fare. This is also similar to Indigo, at least for economy. Maybe some brand damage, but if you take care of high fare paying customers appropriately that can be minimised. Meantime you aren't maintaining two brands and two fleets and two sets of corporate overheads. Probably the only way to compete against QF.

 

[jakeseven7]

Haven't the last 8 years taught us that the corporates that matter are wedded to QFF and won't fly on something similar or even slightly better? A VA that's less convenient and less comfortable than before, but priced above the JQ fares that earn QFF points... won't we be back here again in 10 years?
I'm a WP of 7 years but I think the game's up. A Tiger 2 (or would it be 3?) run by Indigo is the way to go.

Thats the thing, VA have not to date presented a complete product that most people believe is similar or better.

I'm talking everything, alliances, overseas partners, local lounges, etc etc. To get people to jump ship you have to present something different/better. VA did not. They went for a 'try and just match but not quite' strategy v QF and with corporates that simply wasn't enough of a reason to change.

There is absolutely nothing stopping, other than aggressive marketing or adoption of the same business model by QF, of VA offering LCC and full service within the same aircraft. This is the modus operandi of legacy North American and European carriers. In North America, you can get Jetstar service on AA, DL or UA by simply purchasing a "basic economy" fare. This is also similar to Indigo, at least for economy. Maybe some brand damage, but if you take care of high fare paying customers appropriately that can be minimised. Meantime you aren't maintaining two brands and two fleets and two sets of corporate overheads. Probably the only way to compete against QF.

This has come up a lot - because it makes a lot of sense.

I'm sure they could create a divider at about row 14 to seperate the riff raff from the SME/small corporates and less bogan passengers And a door, not a rope. Reinforced Back boarding and disembarkation only for people 14 and beyond! But jokes aside I think that could work .

 

[aaronm]

I also find the thought of VA going LCC somewhat nightmarish, although the Southwest "low-hassle" model has its appeals. Free bags and (nonalcoholic) drinks, clear boarding process, no change fees, certainly more appealing than JQ or even QF in some cases.