Virgin Australia Light Fare Class

[Must...Fly!]

So then why introduce such fares to LAX and HKG? I can understand how it could work for DPS, and for a destination like that you want the lowest lead-in fare you can provide.

 

[HS-TQE]

So then why introduce such fares to LAX and HKG? I can understand how it could work for DPS, and for a destination like that you want the lowest lead-in fare you can provide.

Perhaps to align closely with their partners DL? Considering both are in a JV, a basic light fare could be brought on either carrier to/from LAX as a codeshare?

Delta's Economy Light (very similar to VA's Economy Light)

Basic Economy | Delta Air Lines

With lower-cost fares, Basic Economy is the choice for Delta customers looking for a great value without a seat assignment.

www.delta.com

 

[Must...Fly!]

A slight twist, Elevate fares will now earn 0.6 points per mile flown instead of the previous 0.5 points per mile flown on long haul.

 

[Ade]

However for a family of 4 , who are not elites and don't care much about the status credits or points , this will be a blessing in disguise as they will be able to save sweet $ 300-$400.

I guess they are not targetting the VFF elites with this fare but the passengers who are inclined to LCCs like AirAsia/JetStar flying to Asia.

Agree with your thoughts @knagelli

The way I see it - it's few things ;

1. The idea is to target VFF members who are not-so-frequent flyers to get on board and use VA for their travels

2. The idea is also to pull away the crowd that goes for LCC's by making VA look more affordable and within reach

3. The idea could also be to encourage frequent VFF flyers to see for real the benefits and SC's they could earn just by paying $30-$50 more on a ticket

Like, if I was a VFF, I'd certainly pay that extra for the perks and the SC. And if I was someone who goes after LCC, I'd think twice and be happy to shell out that extra $100 to get that full service airline experience

If VA can maintain the standards, then the potential to draw LCC crowd is higher and with QF's costs soaring, VA might be having a better chance and expanding it's customer base

The other way to look at it could be that with VA introducing cheaper light fares, some might think that it's moving into LCC territory, effectively leaving on QF as the entire, complete full service airline in Australia ...

Well, time will tell

 

[Ade]

So then why introduce such fares to LAX and HKG?

I can only think of it as a move to show travelers how pricey, expensive the competition is ... looking at the fares from QF, AA, SQ etc ... Although SQ is not technically a competition, but VA is not in any alliance as well ... and with the industry moving towards bilateral arrangements rather than being in an alliance - I'd say a smart, money making move from VA (obviously, if and when it works)

By showing the public how cheaper air fares can be, especially, from a full service airline, which isn't in an alliance, VA could get more customers, more businesses might consider signing up with VA, especially those that have their folks fly to the States and Asia for business and prefer to fly full service

Not sure how much thought was put into this or if this was the work some work exp kid in VA

 

[HS-TQE]

I can only think of it as a move to show travelers how pricey, expensive the competition is ... looking at the fares from QF, AA, SQ etc ... Although SQ is not technically a competition, but VA is not in any alliance as well ... and with the industry moving towards bilateral arrangements rather than being in an alliance - I'd say a smart, money making move from VA (obviously, if and when it works)

By showing the public how cheaper air fares can be, especially, from a full service airline, which isn't in an alliance, VA could get more customers, more businesses might consider signing up with VA, especially those that have their folks fly to the States and Asia for business and prefer to fly full service

Not sure how much thought was put into this or if this was the work some work exp kid in VA

VA's partner DL has had "Economy Light" fares for a while now. VA is pretty much only aligning themselves with DL as pointed out a few posts up.

This is also considering DL is moving their TYO operations from NRT to HND shortly as well (e.g FF redemptions on DL intra-Asia was also available on the VA website).

Basic Economy | Delta Air Lines

With lower-cost fares, Basic Economy is the choice for Delta customers looking for a great value without a seat assignment.

www.delta.com

 

[ozfflyer]

I wonder if this family of 4 will be able to get seats together though. Stand by for some unhappy campers on Facebook.

No airline can seat kids under 12 with strangers, so worst a family of 4 wiyh 2 kids coukd get is 2 x 2.

Think this move will impact nz & fj one stops to lax who are almost always substantially cheaper than nonstops.

Think both fj & nz only give you only 23kgs checked now.

Also load factors ex oz to lax in low season are apparently awful going forward due to economy, now also sars type virus.

Majority of yanks prefer to fly u.s. carriers ua aa or dl

 

[Must...Fly!]

Must have been a quick hit to the airline bottom line on Australia-US routes from the virus in China.

Is the recession over?

 

[Stealthflyer]

If it’s cheaper, I’ll consider buying these light fares for personal travel. I almost never need to change a flight, and if I do, it’s cheaper to forfeit the fare than pay a premium for flexible fares every time I travel.

The inability to choose seats beforehand worries me though because if everyone else can choose seats for free, then I’m more likely to be stuck with a dud at check in. As a comparison, SQ only allows flexi and status passengers to choose seats for free, which means the bulk of economy passengers either have to cough up for paid seat selection or wait until check in. The new VA light fare passengers will be in the minority though I suspect.

 

[ozfflyer]

If it’s cheaper, I’ll consider buying these light fares for personal travel. I almost never need to change a flight, and if I do, it’s cheaper to forfeit the fare than pay a premium for flexible fares every time I travel.

The inability to choose seats beforehand worries me though because if everyone else can choose seats for free, then I’m more likely to be stuck with a dud at check in. As a comparison, SQ only allows flexi and status passengers to choose seats for free, which means the bulk of economy passengers either have to cough up for paid seat selection or wait until check in. The new VA light fare passengers will be in the minority though I suspect.

The fare will help fill aircraft in low season depending on what response other airlines come out with . Eg. I can travel with 10-12kgs checked luggage & don't need anymore. Used to carry far too much stuff around the world & never wear 2/3 of it. If 2 travelling together probably gets seats together.

NZ already do Jetstar type fares trans tasman, so why not to USA ?

Wouldn't be surprised if saw a $599 return to LAX from BNE, SYD, MEL with no changes ever, no checked baggage, no ff pts, no status credit, no seat selection, very restrictive dates of travel & no kids fare (same price for adults/kids, even though taxes on kids is lower)

That airline could promo, adults at kids fares.

 

[stm1sydney]

Looks like an okay move by VA. Remains competitive on price, which is important in this day and age of Skyscanner and Expedia, while remaining a full service airline (on board at least). No worse than almost all other full service airlines' base Y fare (eg SQ's base Y fare does not include seat selection, as noted above).

 

[ozfflyer]

Looks like an okay move by VA. Remains competitive on price, which is important in this day and age of Skyscanner and Expedia, while remaining a full service airline (on board at least). No worse than almost all other full service airlines' base Y fare (eg SQ's base Y fare does not include seat selection, as noted above).

could this be the end of kids fares ?
(or slight variation eg. adults pay the Qantas kids fare on VA)

OR

end of kids fares being 25% off fare alone & less in taxes ?


(eg. adults fare at some level & kids fare stated at lower level but not 25% off)

OR

even weight based fares ? (ie. total weight of passenger & luggage & before someone states something, this is no more disciminatory than current situation, where a 100kg person takes 20kgs of luggage at no extra cost, but a 60kg person wants to take 40kgs of luggage & has to pay extra. (where a 23kgs checked limit)

 

[Happy Dude]

I thought VA introduced the Getaway, Elevate and Freedom fares a few years ago to streamline fare classes and eliminate the clutter?

 

[Mattg]

I thought VA introduced the Getaway, Elevate and Freedom fares a few years ago to streamline fare classes and eliminate the clutter?

I thought the main objective of that was to improve yield.

 

[ozfflyer]

I thought the main objective of that was to improve yield.

last time I looked, there were over a dozen VA fare buckets in each direction to LAX & back, so there could be up to 144 or more return fares to LAX.

You can improve yield slightly, by filling otherwise empty seats , at loss leader fares.

The whole travel industry gets offered cheaper fares of some kind or other, subload or confirmed space. These seats might end up as light fares. (spoken to quite a few travel agents recently & most said not travelling anywhere due to economy, ie. Their sales are down, way down)

Just say simplictically break even on a SYD/LAX/SYD was $1000 + taxes/charges of $200.

So if seat goes unsold, airline loses how much ?

$1000 but does save on small amounts of catering, fuel, handling etc.

Better for that airline to sell below cost, than leave seat go empty.

CATCH 22

What do opposition do ? Could end up in a race to the bottom.

 

[Must...Fly!]

How can you improve yield by selling at "loss leader fares"?

 

[ozfflyer]

How can you improve yield by selling at "loss leader fares"?

read above

A loss leader fare sold, is better than seat going empty.

 

[Mattg]

read above

A loss leader fare sold, is better than seat going empty.

Selling loss leader fares may improve RASK (if seats were going to fly empty), but not yield.

 

[ozfflyer]

Selling loss leader fares may improve RASK (if seats were going to fly empty), but not yield.

huh ?


Of course loss leaders improve yield. An $800 fare(not talking about taxes) might be a $200 loss on that seat, but better than empty & no fare paid at all !!!!

 

[Must...Fly!]

read above

A loss leader fare sold, is better than seat going empty.

huh ?


Of course loss leaders improve yield. An $800 fare(not talking about taxes) might be a $200 loss on that seat, but better than empty & no fare paid at all !!!!

You do not understand yield. I suggest visiting Google.

A fare sold is not always better than it going empty. You forget that weight not used in the passenger cabin can be used below as cargo which may work more favourably for the airline.