Unsure why you have re-posted information already stated.
This is 2019 where airlines will work their assets as hard as possible......
Virgin aren’t overstretch it their fleet. They mostly have a very long downtime in LAX from the early morning arrival to the late evening departure......
Hopefully, you will continue to contribute and not be a one thread wonder...…"
My apologizes if my contribution was not first to market or readily understood. I repeat my contention is that VA is stretched in respect of its transpacific operations. This is not a theoretical assertion but supported by evidence. By stretched I am referring to passengers being disadvantaged by irregular operations in the form of cancelled flights, delayed flights (using standard regulator definition) or retimed operations from the original published timetable.
Since VH VPH went into unscheduled maintenance, VA’s Australia – US operations appears to have experienced one (or more) irregular operational incidents every day for 17 days in a row. Looking over the 90 days to July 2nd, other providers (UA, QF, DL and NZ) all appear to have experienced irregular operations, but in all cases these carriers have seem to recover to regular operations within 48 hours or less.
I agree, all airlines seek to use assets productively (no-one would dispute this), the management of some airlines might be more successful at this objective than others. Long periods of irregular operations are consistent with ‘stretched’ utilization of assets. The data described above supports the position that many transpacific carriers have shorter recovery times than VA.
I have assigned one of the associates in research division to pull the data for a longer period and retest this evidence more comprehensively. I will get him to look at VA’s ‘recovery time’ before the agreement with NZ was terminated and after that event. That lost NZ capacity might be key to VA’s current performance. Publishing those results might help better inform the market.
It is also of interest to look at the capital market’s reaction to VA’s performance. Again, using real world data, VA’s lowest share price has been during the period of outage of VH-VPH. I believe that the share price hit an all-time low price of 16 cents in recent days. Since it was known that VH-VPH heading back to operations, there was a modest recovery to 17 cents. This is around 50% down on the price that Air NZ got when it exited from most of it shares to Chinese interests in mid-2016. Some will see these numbers as a commentary on VA performance.
Just to be clear, I have no conflict of interest. I have no commercial or employment interest in any airline in Australia or New Zealand. My observations, positive or negative are not influenced by such potential biases.