Virgin Australia to Reconfigure 737 Fleet - Spend $110M

[encryptededdy]

most premium economies don’t come with lounge access

The two Japanese carriers who will be in competition with VA for Australia/Japan traffic both offer Lounge Access in PE though.

 

[HS-TQE]

The two Japanese carriers who will be in competition with VA for Australia/Japan traffic both offer Lounge Access in PE though.

One of those two Japanese carriers will 'eventually' be partnering with VA though for codeshare and reciprocal FF points benefits. I would assume they'll "sort out" the lounge situation eventually on the HND end.

 

[moa999]

So I assume this means that VA will be tighter pitch than QF.

QF at 12 J / 162 Y
VA at 8 J / 174 Y
Essentially replacing one row of J with two of Y, and VA also have the now two rows of YX.

Guessing it probably means about an inch less pitch on VA, albeit maybe offset by thinner seats.

 

[jakeseven7]

It's disappointing that row 5 will no longer be Economy X. That plus the new divider will apparently allow VA to install up to two extra regular Y rows.

Yes agree and with the comment upthread 'glow up' is bare bones - but I'm philosophical.... We all need VA2 to be a viable alternative to the QF Group.

VA1 did not work, they have to make changes, like this right?

If this ensures VA2 survives then I think thats the best outcome.

VA2 may not be for everyone and is making some changes especially us here on AFF will lament but net net we need them to be a FINANCIALLY viable alternative.

 

[oz_mark]

Yes agree and with the comment upthread 'glow up' is bare bones - but I'm philosophical.... We all need VA2 to be a viable alternative to the QF Group.

VA1 did not work, they have to make changes, like this right?

If this ensures VA2 survives then I think thats the best outcome.

VA2 may not be for everyone and is making some changes especially us here on AFF will lament but net net we need them to be a FINANCIALLY viable alternative.

Are they even trying to be an alternative to QF? They seem to not be really targetting the Qantas big end of town, or the Jetstar price is everything people either.

 

[HS-TQE]

Are they even trying to be an alternative to QF? They seem to not be really targetting the Qantas big end of town, or the Jetstar price is everything people either.

Yes agree and with the comment upthread 'glow up' is bare bones - but I'm philosophical.... We all need VA2 to be a viable alternative to the QF Group.

As VA/Bain/Jayne stated on record, Virgin is not competing to be 'alternative' to the QF group, They've all said that Virgin are 'Value Orientated' carrier going forward, largely competing in the mid-market for small and medium businesses on "their" premium market and competing on price point with LCCs such as Jetstar and fellow "Value Carriers" like Batik Air and Jeju Air (Korea).

It could be argued whether REXJet are a 'Value Carrier' or a 'Full Service' carrier considering they have no BoB menu in Y and have snacks included on their (small) Jet network.

 

[jakeseven7]

As VA/Bain/Jayne stated on record, Virgin is not competing to be 'alternative' to the QF group, They've all said that Virgin are 'Value Orientated' carrier going forward, largely competing in the mid-market for small and medium businesses on the premium end and competing on price point with LCCs such as Jetstar and fellow "Value Carriers" like Batik Air and Jeju Air (Korea).

Yes that’s very public knowledge and repeated often but we still need them to be a financially viable alternative to the QF Group regardless of where they think they sit in the market

 

[Digicola]

Yes that’s very public knowledge and repeated often but we still need them to be a financially viable alternative to the QF Group regardless of where they think they sit in the market

God knows jetstar isn’t going to be the one stepping up to the task…

 

[MEL_Traveller]

The two Japanese carriers who will be in competition with VA for Australia/Japan traffic both offer Lounge Access in PE though.

True! But they are the exception. I think when people think of Premium Ecinomy they don’t equate that with lounge access as standard. Whereas they do with business class.

 

[jase05]

Are they even trying to be an alternative to QF? They seem to not be really targetting the Qantas big end of town, or the Jetstar price is everything people either.

VA must be doing something right
From the AFR
“The data also showed that Virgin Australia has overtaken Qantas in major cities, growing to 37.7 per cent market share versus 35.3 per cent for Qantas. In December 2019, Qantas held 38.3 per cent to Virgin’s 32.1 per cent”

 

[AIRwin]

“The data also showed that Virgin Australia has overtaken Qantas in major cities, growing to 37.7 per cent market share versus 35.3 per cent for Qantas. In December 2019, Qantas held 38.3 per cent to Virgin’s 32.1 per cent”

QF has higher yield though?

 

[jase05]

QF has higher yield though?

You would think so.
Personally I’m just happy to see them still flying and they seem to be on the right track for hopefully lengthy sustainability. Sure they are aren’t perfect but they are still a pretty good airline IMO

 

[jakeseven7]

QF has higher yield though?

I think MS is a valid comparison but comparisons by carrier brand are very difficult because as many continually point out:

- VA2 cater for some of the LCC crowd through some cheapie fares and some moderate value / low end premium crowd (however you want to word it!)
- Jetstar the LCC crowd
- QF the premium and corporate crowd

So from a MS perspective you have to look at QF/JQ group combined v VA2 (or in the past VA1/Tigger).

 

[HS-TQE]

And there's REX and Bonza, the former with their Jet services largely resembling VAd 1.0 with the 'finger biscuit' snack with Tea or Water in Y, and Bonza doing their own regional LCC services out of the East Coast from their Sunshine Coast and Melbourne bases.

 

[justinbrett]

VA must be doing something right
From the AFR
“The data also showed that Virgin Australia has overtaken Qantas in major cities, growing to 37.7 per cent market share versus 35.3 per cent for Qantas. In December 2019, Qantas held 38.3 per cent to Virgin’s 32.1 per cent”

That seems to be selective reporting, and the source isn't the government (it's Citigroup). What do they mean by "major cities"? Only the golden triangle? If so, it's no secret QF fly to more destinations, and grant a lot of market share on major rotues to JQ, with VA focusing on the major routes, so not that surprising.

The actual market share for the entire domestic market is below (source: Airline competition in Australia - June 2023 report) (stats reported in AFR are for Apr 23 which is covered by this graph):

 

[RooFlyer]

low end premium crowd (however you want to word it!)

Wow. Condescending, much?

I suppose the “high end Premium crowd”are those who like to unnecessarily spend more because they can, especially if it’s someone else’s money (the expensive consultants, AKA ‘premium corporate crowd’ come to mind).

“If it costs more, it must be better” mentality . Or mindless loyalty - just pay whatever.

As a retiree with a weakness for flying business, I find VA’s ‘value’ model to be very attractive - not necessarily the best (but often is) but nearly always value for money.

 

[stm1sydney]

It's disappointing that row 5 will no longer be Economy X. That plus the new divider will apparently allow VA to install up to two extra regular Y rows.

Yes, indeed, row 4 is my favourite because I don't like the solid armrests of row 3, and having row 5 as YX behind me means less bumping into my back.

 

[stm1sydney]

- VA2 cater for ... low end premium crowd (however you want to word it!)

How about "premium crowd that wants efficient, friendly service and a quality product, instead of a mangy roo which used to be premium but is now premium only in terms of price but still attracts those not spending their own money or who are rusted-on LTG chasers."

 

[Saab34]

Virgin should have just become the Southwest of Australia. Economy, No lounges, Free checked bags, No change fees, passenger growth would be off the charts.

 

[jase05]

Virgin should have just become the Southwest of Australia. Economy, No lounges, Free checked bags, No change fees, passenger growth would be off the charts.

Perhaps, but I also suspect there are a lot like ourselves that spend decent amounts and would be forced to go back to Qantas.