Virgin to lose A330's and B777's - become mid range airline - really?

[AIRwin]

A330 XFJ operated a 13 minute positioning flight from AVV to MEL today as VA9903:

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[AIRwin]

B777 VPH will operate from MEL to BNE tomorrow as VA9931:

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[p--and--t]

Now that’s some spin in the copywriting

I had to laugh at "the world’s most advanced and modern fleet of aircraft." and a few lines below Fokker 100

 

[mrmerc500]

The A332s are leased so those leases will be cancelled as part of the DOCA and the metal returned to their owners.

Where will the lessor move these birds to & would they already be out of the hands of VA?

What is expected to happen with the 777 birds as assume VA will want to reduce parking & maintenance costs ASAP?

 

[HS-TQE]

Where will the lessor move these birds to & would they already be out of the hands of VA?

What is expected to happen with the 777 birds as assume VA will want to reduce parking & maintenance costs ASAP?

The sole leased 77W will be returned to the lessor.

As recently revealed, a large chunk of the owned VA fleet (737s and the remaining 77Ws) had mortgages/loans put against them by the banks courtesy of the previous owners/Borghetti era management.
In other words, the administrators revealed a large amount of the owned fleet was 'encumbered'.

Edit: If Bain were looking to "asset strip", it could be argued that SQ/EY/HNA and JB's former team seems to have already 'beaten them' to it.
Edit 2: VA aren't the only airline to mortgage/loan against their assets. Many airlines worldwide also do this method. Example: QF has their entire 787 fleet encumbered against the banks. The US3 carriers as well also have some of their widebody fleet encumbered.

It'll be up to the banks to decide what to do with the remaining VA 777s and the unwanted 737s from the owned fleet. Although it's likely the entire owned 737 fleet will be continuing on with VAmk2, regardless of how old the 737s are.

 

[AIRwin]

sole leased 77W will be returned to the lessor.

VH-VPH?

 

[HS-TQE]

VH-VPH?

VOZ is the sole 'leased' 77W.

VPH is from the owned fleet. I'm guessing that VPH is likely to be flying out to be stored in the desert, where the bank(s) that has encumbered VPH will decide what to do with it (either write-down/scrap for parts or sell it).

 

[mrmerc500]

Maybe they are trying to copy the Southwest model.

Only been to the States once, what would this look like? Heard they provide free baggage so that would be one up from JQ, otherwise as others have stated, may see fare buckets similar to AirNZ for increased value proposition.

 

[BNEFlyer]

Only been to the States once, what would this look like? Heard they provide free baggage so that would be one up from JQ, otherwise as others have stated, may see fare buckets similar to AirNZ for increased value proposition.

Two free checked bags, open seating, WIFI on board for purchase, free entertainment on own device, complimentary pretzels and non-alcoholic drinks, buy-on-board alcohol (but no BOB food), a FF/rewards program, flights to main airports (LAX, MCO, ATL, IAD, DTW, DEN, SEA, PHX, HNL, BOS) but also smaller airports like Manchester (Maine), Boise, Omaha, Buffalo, Norfolk.

VA will most likely end up very similar to how they were, just without widebodies and international flights (for now).

 

[dajop]

Two free checked bags, open seating, WIFI on board for purchase, free entertainment on own device, complimentary pretzels and non-alcoholic drinks, buy-on-board alcohol (but no BOB food), a FF/rewards program, flights to main airports (LAX, MCO, ATL, IAD, DTW, DEN, SEA, PHX, HNL, BOS) but also smaller airports like Manchester (Maine), Boise, Omaha, Buffalo, Norfolk.

In addition they single type operator (all 737s*), and their FF program is directly revenue based (not miles based). Not so relevant for Australia, historically they were more of a point to point operator, but the do offer connecting fares across their network and hub at their bases but from what I understand not in banks (referred to as "rolling hubs"). Also tend to be strong in major metropolitan areas not well served by other 3 (eg San Diego, St Louis, Kansas City) or secondary airports in the big cities (Dallas, Houston, Chicago).

* depending on whether you consider 737 and 737MAX's as single types, but regulators do.

 

[serfty]

their FF program is directly revenue based (not miles based).

In relation to redeemable points, Velocity was revenue based originally and domestic flights still were (are?) aside from statused based loadings.

 

[dajop]

In relation to redeemable points, Velocity was revenue based originally and domestic flights still were (are?) aside from statused based loadings.

Yes, so in the new VA with shrunken network, anything you earn on VA metal looks like it will be revenue based for the time being.

Southwest has fare type loadings as well as status loadings. It's 6/$ for base fares, 10/$ for flexible fares, 12/$ for flexible fares with perks during travel.

 

[Oneworldplus2]

Two free checked bags

Not many offer this in the USA, unless you are a FF member with status. We have it lucky in Australia with 23kg checked baggage for no cost (VA/QF, not JQ). Hence why you heard stories of the yanks trying to pack the kitchen sink into the overhead bins.

 

[mrmerc500]

Two free checked bags, open seating, WIFI on board for purchase, free entertainment on own device, complimentary pretzels and non-alcoholic drinks, buy-on-board alcohol (but no BOB food), a FF/rewards program, flights to main airports (LAX, MCO, ATL, IAD, DTW, DEN, SEA, PHX, HNL, BOS) but also smaller airports like Manchester (Maine), Boise, Omaha, Buffalo, Norfolk.

VA will most likely end up very similar to how they were, just without widebodies and international flights (for now).

It is a very compelling offer, certainly more Value than Jetstar however accepting double baggage allowance is premium to Qantas & would be a weight contributor.

If there was an inclusive 12kg onboard allowance, this would be a great incentive for same day return travellers & perhaps option to buy upto 15kg to slightly beat QF’s complimentary 10kg & JQ’s flex 14kg allowance.

We all know VA’s track record with food offerings, it maybe a good idea to stay away from this and eliminate however could see regular travellers or corporates becoming annoyed if they can’t at least obtain cheese & crackers.

Although QF do well with special & regular meals, it does also become annoying that you can’t choose a snack! Not offering any food options would be a disadvantage with JQ.

Perhaps similar to other airlines, provide sell ups at the time of booking to increase cash flow and have the advantage of pre-ordering.

A great fruit & cheese platter would be a hit similar to some of the US carriers have offered.

 

[ag4647]

living in the US I fly delta domestically a lot and buyung food and drinks (beyond water or coffee) in economy seems to be the full service proposition here. Free bag checkin with FF card etc.

A free protein ball or crackers on VA hardly seems full service anyway!

 

[HS-TQE]

VH-VPD flew as VA9943 to HKG on Tuesday. Assumably off to the bank(s) that has the encumbered loan(s) against that aircraft, where they will decide whether to scrap or sell the aircraft.

 

[AIRwin]

VH-VPD flew as VA9931 to HKG on Tuesday.

VA9943?

 

[HS-TQE]

VA9943?

I stand corrected, it was a typo.

 

[AIRwin]

I also noticed that VH-XFH flew MEL-WTB as VA9907 last week and VH-VOZ is scheduled to operate BNE-WTB as VA9908 tomorrow...

 

[ja1]

VA(2) didn't think about selling any flights on the 777s before they all left (similar to QAN's sightseeing flight?) ?