Virgin Australia Financially Secure? [Now in Voluntary Administration]

[HS-TQE]

If VA mk2 emerges as a 1-class hybrid or a pure LCC, I can't see SQ being all that interested in maintaining a partnership with the VA1 successor.

J pax on SQ connecting onto 'Y' class on a Hybrid 1-class or a pure LCC wouldn't leave a good impression on what's left of SQ's J client base post-COVID.

If it was a domestic full service (with limited NZ/Pacific Islands or no international service), then there's a reasonable chance of SQ forming a codeshare/FF relationship with VA mk 2 at the most.

 

[p--and--t]

If VA mk2 emerges as a 1-class hybrid or a pure LCC, I can't see SQ being all that interested in maintaining a partnership with the VA1 successor.

J pax on SQ connecting onto 'Y' class on a Hybrid 1-class or a pure LCC wouldn't leave a good impression on what's left of SQ's J client base post-COVID.

If it was a domestic full service (with limited NZ/Pacific Islands or no international service), then there's a reasonable chance of SQ forming a codeshare/FF relationship with VA mk 2 at the most.

I have no idea whatsoever of actual ratios but a guessimate is that maybe 10% of SQ passengers would be J class wanting a domestic connection.

I don't really understand the constant reference to J passengers being the highest priority in every business decision the SQ make about VA1/2.

 

[antycbr]

I have no idea whatsoever of actual ratios but a guessimate is that maybe 10% of SQ passengers would be J class wanting a domestic connection.

I don't really understand the constant reference to J passengers being the highest priority in every business decision the SQ make about VA1/2.

Agreed, there's a hell of a lot of people who are maybe Gold from domestic travel in economy and would like to have a bit of lounge access on their economy flight to Europe or Asia. The Velocity link is much more important in terms of the aspiration of earning points in the air and on the ground to go to somewhere more interesting overseas. No international partners on a new VA means those points earns will most likely end up on QF and partners. The golden handcuffs of the frequent flyer program are definitely a thing and most people need some domestic contribution towards status requal.

 

[jakeseven7]

If there's no VA there'll be no way that SQ can get any form of partnership with QF long term for competition reasons, only limited domestic carraige to non-served ports like NZ have.

Never say never, NZ have full domestic codeshare with QF (85 destinations) then zero on the routes they compete tooth and nail with QF on. No reason SQ couldn’t propose the same if VA2 is too LCC for their passengers.Wouldn’t even need ACCC approval they could do it tomorrow

 

[jakeseven7]

I have no idea whatsoever of actual ratios but a guessimate is that maybe 10% of SQ passengers would be J class wanting a domestic connection.

I don't really understand the constant reference to J passengers being the highest priority in every business decision the SQ make about VA1/2.

10% of passengers maybe but how much % of profit I wonder...

 

[HS-TQE]

SQ already has an interline with QF.
There's no reason SQ could expand the interline with QF if they deem VA mk2 too LCC for their style of service. No competition commission approval (on both ends) required.

 

[jakeseven7]

SQ already has an interline with QF.
There's no reason SQ could expand the interline with QF if they deem VA mk2 too LCC for their style of service. No competition commission approval (on both ends) required.

They could even codeshare domestically without approval giving their KrisFlyer members FF point earning potential too.

 

[dajop]

If VA mk2 emerges as a 1-class hybrid or a pure LCC, I can't see SQ being all that interested in maintaining a partnership with the VA1 successor.

J pax on SQ connecting onto 'Y' class on a Hybrid 1-class or a pure LCC wouldn't leave a good impression on what's left of SQ's J client base post-COVID.

If it was a domestic full service (with limited NZ/Pacific Islands or no international service), then there's a reasonable chance of SQ forming a codeshare/FF relationship with VA mk 2 at the most.

SQ codeshares on JetBlue in the US, who in most routes are single class (except transcontinental, which IIRC don’t connect to/from SQ as SQ would generally fly you to the East Coast or the West Coast). In Europe they codeshare on LH, SK in “euro business” economy seats with blocked middle. In NZ they codeshare on NZ, single class domestically as well. Not a huge factorI would have thought. The main thing is the handcuffs for domestic road warriors.

 

[AustraliaPoochie]

I guess if the decision is made for VAmark2 to be totally a 1 class basic Y type of airline, we have to make do with that, if our employers decide to go el cheapo.
At least we can still thumb our noses at QF, if we are too cheap to fly QF on some routes, where VAmark2 will fly too.
The new owner would have to be a lean running operator in the beginning to cover their cost of buying the airline, and maybe need to just get as many bums on seats as possible.
Yes, I do realise J fares come at a premium, and airlines can sell these for a lot, but these also come at a bit more cost, ie, lounge fees etc.
I do realise its purely speculation, and that can be a disservice to them (the new airline).
Remember when VirginBlue first came along, lean, thin, mean, ... maybe the new owner has to be like this for the first year or two.

 

[antycbr]

I guess if the decision is made for VAmark2 to be totally a 1 class basic Y type of airline, we have to make do with that, if our employers decide to go el cheapo.
At least we can still thumb our noses at QF, if we are too cheap to fly QF on some routes, where VAmark2 will fly too.
The new owner would have to be a lean running operator in the beginning to cover their cost of buying the airline, and maybe need to just get as many bums on seats as possible.
Yes, I do realise J fares come at a premium, and airlines can sell these for a lot, but these also come at a bit more cost, ie, lounge fees etc.
I do realise its purely speculation, and that can be a disservice to them (the new airline).
Remember when VirginBlue first came along, lean, thin, mean, ... maybe the new owner has to be like this for the first year or two.

I agree with what you’re saying but if you are going to totally gut domestic VA you may as well start your own airline up instead and avoid all the transformation costs of closing airport lounges and ripping out business class.

 

[tomlee1986]

This is turning into a complete train wreck.....

I honestly think the bidders want a liquidation. I feel it is an orchestrated attempt to drive VA1 completely under.

To be honest.. this is the worst possible result, but the most realistic

 

[BNEFlyer]

This is turning into a complete train wreck.....

I honestly think the bidders want a liquidation. I feel it is an orchestrated attempt to drive VA1 completely under.

VA have to present business proposals to the potential investors, so it would be highly unlikely any of them would sway towards a liquidation.

 

[jakeseven7]

Branson sticking his fingers in every pie he can to protect his licencing stream and force the new owners to retain his brand....?

Branson linked to two Virgin Australia bids

Sir Richard Branson has been linked to two of the four shortlisted bids for Virgin Australia, according to separate newspaper rumours.

australianaviation.com.au

 

[TheInsider]

Branson sticking his fingers in every pie he can to protect his licencing stream and force the new owners to retain his brand....?

Branson linked to two Virgin Australia bids

Sir Richard Branson has been linked to two of the four shortlisted bids for Virgin Australia, according to separate newspaper rumours.

australianaviation.com.au

It's disgusting. If he was really that interested he would've invested his share into the current VA.

 

[HS-TQE]

SQ/SIA's parent company Temasek is backing the BGH bid. However it was stated that Temasek will not be putting money in at this time.

Remember guys: Temasek and SQ/SIA are separate companies.

Whilst SQ/SIA has proven themselves to be largely incompetent at running any overseas airline outside of their island state, Temasek may (or may not) be better advisors or managers than their SIA/SQ counterparts.

RMIT University senior lecturer in management Warren Staples said BGH also potentially has the backing of Temasek, Singapore's sovereign wealth fund and primary shareholder in Singapore Airlines.

"Partnering again with Singapore Airlines is eerily reminiscent of the circumstances of both Ansett and Virgin, and transparency around the sharing of revenues between Singapore and the new Virgin 2.0 carrier would be crucial to any long-term viability," Dr Staples said.

Four bidders have been shortlisted to take over Virgin Australia. This is what we know about them

 

[oz_mark]

It's disgusting. If he was really that interested he would've invested his share into the current VA.

He was in the maybe bucket before it went into admin. The rest of them said no.

 

[BNEFlyer]

It's not a bad thing at all that SRB/Virgin Group are interested, and a smart move to link with an investor rather than go it alone. But also the line in the quoted article "Deloitte has so far refused to reveal the shortlist" tells us what we need to know, that any one of the 20 potential investors could be a frontrunner.

 

[antycbr]

It's disgusting. If he was really that interested he would've invested his share into the current VA.

Not really, its just business. Branson has walked away from a number of Virgin branded businesses before and under VA1's debt load there was no way that he could have saved the business alone.

 

[jakeseven7]

It's not a bad thing at all that SRB/Virgin Group are interested, and a smart move to link with an investor rather than go it alone.

Yes because the Virgin Group have offered so much strategic wisdom and operational support and assistance in the past, not

We all know the only reason he's sticking his nose in at probably 0.01% is to force VA2 to keep his brand and thereby get his revenue licencing stream in.

 

[BNEFlyer]

Yes because the Virgin Group have offered so much strategic wisdom and operational support and assistance in the past, not

We all know the only reason he's sticking his nose in at probably 0.01% is to force VA2 to keep his brand and thereby get his revenue licencing stream in.

The Virgin Australia name should stay though, and who knows, the licening fee maybe negotiated as part of a deal that includes Virgin Group?