Virgin Australia Financials 2019/20

[dajop]

There was some talk awhile back that once VS and VA tightened up their partnership that some friendlier connection times may happen down the track.

Easier said than done.

Currently VA operates SYD-HKG 10:15/16:35 and HKG-SYD 19:15/07:40
Currently VS operates LHR-HKG 21:00/16:55 and HKG-LHR 23:55/04:50

Assuming slots, VS could really only move an LHR-HKG an hour later, but not HKG-LHR any earlier. So it would arrive at 17:55. VA could move back 3 hrs outbound and 2 hrs inbound, arriving in HKG at 19:35 and departing at 21:15 , which would give 4:20 connection to LHR and 3:20 on the way back. But what then happens to China bound traffic? Is a 09:40 arrival into SYD competitive? And in the uber crowded AU-LHR market, are 4 hour connections competitive?

 

[jakeseven7]

Easier said than done.

Currently VA operates SYD-HKG 10:15/16:35 and HKG-SYD 19:15/07:40
Currently VS operates LHR-HKG 21:00/16:55 and HKG-LHR 23:55/04:50

Assuming slots, VS could really only move an LHR-HKG an hour later, but not HKG-LHR any earlier. So it would arrive at 17:55. VA could move back 3 hrs outbound and 2 hrs inbound, arriving in HKG at 19:35 and departing at 21:15 , which would give 4:20 connection to LHR and 3:20 on the way back. But what then happens to China bound traffic? Is a 09:40 arrival into SYD competitive? And in the uber crowded AU-LHR market, are 4 hour connections competitive?

4 hour connection for a business? It wouldn't be classed as a high ranking 'logical' connection in many booking tools, so answer is 'No'.

 

[Mr Pumblechook]

SQ offer 50-60 minute connections in both directions for SYD-LHR-SYD. What traveller in their right mind would book a seven hour layover in HKG instead?

 

[jakeseven7]

Another interview with PS with hints on strategy going forward. Now we know what Wiggy is for, its supposed to attract the leisure market back from Jetstar

Redirecting

 

[jase05]

Another interview with PS with hints on strategy going forward. Now we know what Wiggy is for, its supposed to attract the leisure market back from Jetstar

Redirecting

I must admit the wiggy ad is neither here nor there for me.
Will be very interested to see the strategy going forward from here and what routes get trimmed or cut completely

 

[Must...Fly!]

Another interview with PS with hints on strategy going forward. Now we know what Wiggy is for, its supposed to attract the leisure market back from Jetstar

Redirecting

Great idea, if only they didn't own a budget airline that is seeking to do exactly that.

So what is the goal, having them fight to the bottom against each other?

The article also mentions tapping in to "product innovations" from the major shareholders. Expect Neighbour-free seat bidding to appear very shortly. Perhaps some catering related changes may also appear on long haul.

 

[Spongbob]

Yes, it is all a bit odd. I thought VA was competing with QF, while TT was competing with JQ.
Now I am confused.

 

[cambriamarsh]

Yes, it is all a bit odd. I thought VA was competing with QF, while TT was competing with JQ.
Now I am confused.

They're all competing with each other to some extent. After all surely even the most rabid QF fanboi will look at VA if QF is fully booked and they need to travel and vice versa

 

[dajop]

Great idea, if only they didn't own a budget airline that is seeking to do exactly that.

So what is the goal, having them fight to the bottom against each other?

I think it was mentioned they would pull TT off the business routes and focus them on leisure routes only, reading between the lines, try and avoid VA and TR competing with each other.

 

[jase05]

I think it was mentioned they would pull TT off the business routes and focus them on leisure routes only, reading between the lines, try and avoid VA and TR competing with each other.

Yeah, that’s my take aswell.
TR is been pulled off the ADL-BNE route and and another VA service will take its place for example. TT routes are being cut and we should me more VA services on the golden triangle

 

[HS-TQE]

I do wonder if this applies to leisure routes with "some" J demand, e.g SYD-OOL, MEL-OOL, etc. One suggestion is to operate TR in place of VA on SYD-OOL during the middle of the day/weekends for example, thus to use both carriers but not compete against each other at the same time.

There are some leisure routes that has been tried and failed (twice) though, e.g MEL-MCY. Which would probably throw a spanner in the works on certain routes.

 

[Must...Fly!]

I do wonder if this applies to leisure routes with "some" J demand, e.g SYD-OOL, MEL-OOL, etc. One suggestion is to operate TR in place of VA on SYD-OOL during the middle of the day/weekends for example, thus to use both carriers but not compete against each other at the same time.

There are some leisure routes that has been tried and failed (twice) though, e.g MEL-MCY. Which would probably throw a spanner in the works on certain routes.

If that is a strategy then they need to IMO find a way to link Velocity in with Tiger, as QFF is with JQ. Not everyone flies at 7am and 6pm for work.

 

[jase05]

If that is a strategy then they need to IMO find a way to link Velocity in with Tiger, as QFF is with JQ. Not everyone flies at 7am and 6pm for work.

Without lounge access of course

 

[Mr Pumblechook]

I do wonder if this applies to leisure routes with "some" J demand, e.g SYD-OOL, MEL-OOL, etc. One suggestion is to operate TR in place of VA on SYD-OOL during the middle of the day/weekends for example, thus to use both carriers but not compete against each other at the same time.

VA's success in OOL brought QF back after they abandoned it to JQ, so replacing VA with TT could be counter-productive. QF loyalists will buy a JQ Y middle seat for $1500 rather than a $500 VA J seat, but I can't imagine too many VA customers would set foot in the TT area of a terminal let alone board one of their aircraft.

 

[Must...Fly!]

VA's success in OOL brought QF back after they abandoned it to JQ, so replacing VA with TT could be counter-productive. QF loyalists will buy a JQ Y middle seat for $1500 rather than a $500 VA J seat, but I can't imagine too many VA customers would set foot in the TT area of a terminal let alone board one of their aircraft.

Too right, and a critical flaw of the strategy.

 

[pauly7]

VA's success in OOL brought QF back after they abandoned it to JQ

Yes and QF promptly hoovered up the premium and corporate travel market again ex Syd and then realised might as well pick up the ex Mel $$ travellers and launched direct again from there.

Then VA is left to fight it out with JQ and Tiger for the lower yielding pax.

 

[Mr Pumblechook]

Yes and QF promptly hoovered up the premium and corporate travel market again ex Syd and then realised might as well pick up the ex Mel $$ travellers and launched direct again from there.

Then VA is left to fight it out with JQ and Tiger for the lower yielding pax.

Flights/day SYD-OOL: QF 4, VA 9
Cost for Y & J: QF $139/$673, VA $99/$579
Hard product: Barely distinguishable Lounge: VA has the edge

If QF can command the premium pax with that offering, how can VA ever succeed?

 

[Must...Fly!]

The constant theme here is that VA is able to gain some corporate share but then is fighting a losing battle at the bottom end of the market because the Tiger brand is so poisonous. The obvious solution has been discussed here repeatedly!

 

[dajop]

is fighting a losing battle at the bottom end of the market because the Tiger brand is so poisonous. The obvious solution has been discussed here repeatedly!

With the toxic brand, maybe they could simply rebrand the operation. Perhaps take a leaf out of Air Canada’s book who operate Air Canada Rouge alongside the main carrier, but instead of Rouge maybe a different colour - Blue - would work?

 

[HS-TQE]

Going further with merging VA Regional and Tigerair is another, merging both of those AOCs into the 1 AOC.

Using the "Virgin Australia Regional" name as the brand (e.g with 'regional' decals next to "Virgin Australia" or below it) operating with only Economy class with "Economy X" seating to differentiate from the mainline carrier.