Virgin Blue announcements 26/08

[gilby08]

Surely JQ could offer more codeshares on it's services, such as from HNL (AA flights), from SIN/BKK (BA/QF), CDG (AF).. They offer it on the full service carriers website but not if purchased from JQ.

 

[markis10]

I think it's time for QF to finally announce some more of JQ's expansion plans to go into eastern europe and the americas. JQ/QF just seem to always take their time with their commercial agreements with no real push to get it out there in the media and market.

I reckon it would be a good time now to announce these new products and possibly overshadow DJ's plans.

How can they do that with no planes, JQ are two years behind, and keep in mind their cabin version of the 787 is not certified and not in process to be certified either, I would not be gearing up for something that may not happen.

 

[gilby08]

Maybe not announe a start date for their ops, just announce where they will be going to. I know that there is word from FCO/CDG/ATH but it would be good to just confirm it and start to get people excited.

But as QF stated they will be using their A330's first off.

 

[oz_mark]

Some changes in the landscape:

The Virgin deal resulted in Etihad and Qantas severing a codeshare agreement they signed early last year, while Virgin Blue yesterday ended an interline agreement with Etihad's rival, Emirates.

Virgin class war to cut profit turbulence

..and some interesting comments from Etihad:

The decision to switch to Virgin Blue, said James Hogan, the chief executive of Etihad, focused on two areas. First, there were terms and conditions over frequent flier programmes that Qantas was unwilling to offer Etihad but Virgin Blue was. In addition, Qantas is now expected to challenge Etihad, Emirates Airline and other Gulf carriers by opening services to nearby markets such as Lebanon, Egypt and Greece.

http://www.thenational.ae/apps/pbcs.dll/article?AID=/20100826/BUSINESS/708269934/1005



...and leaves a hole is SE Asia:

''The only hole is in south-east Asia,'' said Virgin Blue's boss, John Borghetti, referring to likely bilateral alliances with other airlines.

I wonder how they will fill that - perhaps MH?

 

[777]

I wonder how they will fill that - perhaps MH?

Seems the obvious fit. Already partnering with DJ in some respects - sharing lounges with VA and some FF earn and burn connection. They're unaligned, they have good frequency to most Australian ports and most points in SE asia where DJ customers might want to fly. They're also under the pump a bit on budget competition from Air Asia and this would be an excellent way of boosting their Australian services and yield.

We'll see i guess. There must be something afoot or i doubt JB would go to the trouble of pointing it out.

I have to say that if they can pull that off with MH or a similarly positioned Asian Carrier (and get an international lounge in their australian ports) that'd pretty much complete my original wish list for DJ. Full lounge and FF reciprocity with Delta, Virgin Atlantic, Air NZ, and Etihad really only leaves Asia as the hole in the network. I will be interested to see if the Air NZ deal becomes a little more comprehensive now they've pulled out of NZ domestic.

 

[concorde70]

This will be a disaster for the Aus - SA route. The cozy QF/SA code share has just (19/8) been extended again for a year, mainly as a result of the competition introduced by VA. The announcement by VA blows all the IASC assumptions out of the water. In addition there are no other airlines that can fill the gap.

Before VA entered the cheapest economy fares on the route were about $2,000 now they can be had for as low as $1,450 and without competition in future these will now double.

I fail to see how VA could not make a go of the route as it is one of QF's best performers even at these reduced fares and with increased capacity, although I guess QF probably used its size to bully VA off the route through price gouging (or a backroom deal).

Very disappointing for those of us in Melbourne reliant on the service and the cost benefits provided.

 

[dajop]

T
I fail to see how VA could not make a go of the route

Wrong equipment for the route. My simplistic read would suggest a four engine bird would allow them to probably shave 2 hours off the trip (like QF's route ex-SYD). It can't be cheap to operate the route that it does from MEL-JNB with the 777.

 

[straitman]

Wrong equipment for the route. My simplistic read would suggest a four engine bird would allow them to probably shave 2 hours off the trip (like QF's route ex-SYD). It can't be cheap to operate the route that it does from MEL-JNB with the 777.

That would be my summing up of the situation also. A pity for VA but at least they are being realistic early with this one.

 

[Aussie_flyer]

That would be my summing up of the situation also. A pity for VA but at least they are being realistic early with this one.

Ahm, they would have known ALL OF THIS before starting operations on the route. Seems really badly thought out to me!

 

[straitman]

Ahm, they would have known ALL OF THIS before starting operations on the route. Seems really badly thought out to me!

We shall have to agree to disagree on this one.

 

[oz_mark]

Ahm, they would have known ALL OF THIS before starting operations on the route. Seems really badly thought out to me!

It will have been taken into account in deciding which routes to deploy the 777 to. Presumably they chose what appeared to be the best options available at the time.

 

[dajop]

It will have been taken into account in deciding which routes to deploy the 777 to. Presumably they chose what appeared to be the best options available at the time.

Yes. Important to remember that VA launch co-incided pretty much with the trough of the GFC, AND the entry of DL to the market (pre the VA/DL agreement). We saw unprecedented (at the time) fares to the US in Y around the $800-900 mark and J for around $5K, about half of what they were 12 months earlier. At the time Europe was cactus, and Asia was shaky (EK were dumping $400 return fares MEL/BNE-SIN into the market). With mining and both the Oz and ZA economies holding up JNB was probably a good choice at the time. Things have changed.

 

[jsd]

Would have thought that today's announcement could have been something more exciting than a few $39 fares on a couple of routes

Something to get the crowd pumped like a new livery or a sneak peek at a new J offering would have built up more suspense and PR:mrgreen:

But thats just my two cents worth, means nothing


Josh

 

[oz_mark]

Would have thought that today's announcement could have been something more exciting than a few $39 fares on a couple of routes

Something to get the crowd pumped like a new livery or a sneak peek at a new J offering would have built up more suspense and PR:mrgreen:

But thats just my two cents worth, means nothing

You expected that is how they would surprise the Facebook crowd?

Facebbok offers, Twitter offers etc, are bound to be marketing promotions.

 

[jsd]

You expected that is how they would surprise the Facebook crowd?

Facebbok offers, Twitter offers etc, are bound to be marketing promotions.

Wouldn't have hurt


Josh

 

[medhead]

Report in the weekend Australian business section confirms the 2 A332 are currently leased by Emirates.

Suggestions of taking another 5 from emirates have been rejected.

Here is a link
http://www.theaustralian.com.au/bus...tralian-services/story-e6frg8zx-1225911082332

Virgin will take two Airbus A330-200s, currently leased by Emirates, and introduce them on the Perth route next May. It has made it clear that this will just be the start of a bigger A330 fleet, but rejects suggestions it has already decided to take an additional five aircraft from Emirates.

 

[pauly7]

Report in the weekend Australian business section confirms the 2 A332 are currently leased by Emirates.

http://www.theaustralian.com.au/bus...tralian-services/story-e6frg8zx-1225911082332

And to answer my own question posted the other day; Virgin have ended interlining agreements with Emirates.

Wonder if Emirates will have a chat to QF now.... stranger things have happened! Although the impending JQ expansion into the UAE may make that difficult....

 

[samh004]

Wonder if Emirates will have a chat to QF now.... stranger things have happened! Although the impending JQ expansion into the UAE may make that difficult....

I can’t imagine Emirates would be scared of JQ, after all, they’re full service and offer great prices for that, JQ is budget with average prices. They’ll probably be lower, but Emirates can just say look at what you get…

 

[pauly7]

I can’t imagine Emirates would be scared of JQ, after all, they’re full service and offer great prices for that, JQ is budget with average prices. They’ll probably be lower, but Emirates can just say look at what you get…

Mmm maybe not such a crazy idea then... QF could agree to only deploy JQ on EK turf (as opposed to QF mainline) and there could be a co-existence...

 

[anat0l]

There will probably be some profound disappointment if EK gets in bed with QF, leaving DJ behind.

What a strange swap....