What is Virgin Australia's strategy (post-administration)?

[HS-TQE]

What VA will largely pick up from a NZ merger/takeover will largely be Trans-Tasman, by allowing NZ to do all the work there, and just put a VA code on the existing NZ schedules (with marginal increases and upgauges), all of Pacific Islands west of Fiji including Honolulu, and the AKL-South American connections, where NZ would serve as VA's South American Long Haul partner.

North America long haul as pointed out is already covered by AC and UA, with partial taxpayer subsidies from the Queensland Government thrown in for UA's QLD-USA flights.

If NZ is hoping they'll pick up VA's passengers for AUS-USA as part of a potentiual merger, chances are they'll be mostly low yielding VA passengers. Whilst filling up NZ's AKL-USA flights with low yielding VA pax may help with loads at the 'back of the bus', it won't help with long haul revenue on NZ's end.

Higher yielding leisure/FF VA pax is likely to pick up AC or UA for non-stop flights.

 

[jakeseven7]

Yeah, my big fear with some sort of NZ/VA merger would be that Velocity is dragged down to Airpoints' level. But if Velocity were left more or less intact and inherited Star membership through NZ ownership, that would be a substantial upside.

Of course NZ's own offering is not premium (no domestic J even), and while the long-haul fleet has all-aisle flat J, it's well behind the times and the new cabins are still some years away I think? (And even then the upgraded product doesn't look groundbreaking.) So I understand it's not a Bain priority but I'd still be happier to see a boutqiue VA long-haul widebody operation to LAX/SFO and HND.

I agree NZ is not premium, their product and offering is behind the market.

I doubt we will see a VA2i re-emerge but would be interested to hear @pauly7 view on this and the future merger gossip as much as they can share of course given their insider knowledge.

 

[HS-TQE]

"VAi2" has 'emerged' and 'VAi' still technically exists as 'separate' operation and 'Australian registered' company to use their IASC International Rights (to Bali, Fiji, Port Vila, Tonga, Queenstown) with 737 aircraft (many of them former ZK registered aircraft) that is still registered to the separate VAi AOC instead of the main VAA AOC.

 

[dajop]

Higher yielding leisure/FF VA pax is likely to pick up AC or UA for non-stop flights.

Also perhaps be attractive to JFK, connecting to NZ’s new service (which starts tomorrow, btw) , in competition with QF. Perhaps also niches like the small ADL- US market, but that would only be crumbs.

 

[HS-TQE]

Also perhaps be attractive to JFK, connecting to NZ’s new service (which starts tomorrow, btw) , in competition with QF. Perhaps also niches like the small ADL- US market, but that would only be crumbs.

The other alternative would be UA's SYD-IAH route (and onward to JFK) which iirc that specific route was on the doldrums pre-COVID prior to picking up the VA FF/Codeshare agreement.

VA's codeshare may had saved the SYD-IAH route for now as they (UA) now got connections on the SYD end post-COVID.

 

[HS-TQE]

Air New Zealand has now publicly come out in front of the NZ sharemarket to 'deny' the claims from News Corp/The Australian of merger talks with VA.

Freebie article:

Air New Zealand dismisses report of merger with Virgin Australia

Air New Zealand is denying it is in merger talks after a report in The Australian newspaper.

www.rnz.co.nz

 

[dajop]

The other alternative would be UA's SYD-IAH route (and onward to JFK) which iirc that specific route was on the doldrums pre-COVID prior to picking up the VA FF/Codeshare agreement.

VA may had saved the SYD-IAH route for now as they (UA) now got connections on the SYD end post-COVID.

Of course it's a useful route too. But BNE/MEL traffic to JFK is better served by their non-stops to US and onwards to New York, or to a NZ service via AKL, than routing via SYD and IAH. IAH competes with QF services to DFW for serving big chunks of the south, east coast and midwest.

 

[jakeseven7]

As much as I don't like the sound of a VA/NZ merger it really does seem to make sense and will enable both to compete effectively against QF on trans-tas. The VA/QR partnership also makes even more sense post-VA/NZ merger too.

Well NZ have come out and denied they are talking about the merger, but Rex have not and the article said VA2 was shopping both of them

 

[HS-TQE]

While we're at it, it's a good laugh reading the comments over at Simple Flying's summary of the Air NZ merger article. The ol 'SQ should taek ovah VA!!1!' in the comments although they weren't mentioned in the article and SQ, along with Vistara co-owners Tata Sons are busy with the Vistara/Air India merger.

 

[Saab34]

ADL-DPS is back. Daily during peak, 3 weekly year round. Hopefully Perth is next.

1750-2040
2250-620

 

[jase05]

ADL-DPS is back. Daily during peak, 3 weekly year round. Hopefully Perth is next.

1750-2040
2250-620

The day time flight in VA J is ok but I hate the overnight ones and avoid if possible

 

[simmomelb]

Well NZ have come out and denied they are talking about the merger, but Rex have not and the article said VA2 was shopping both of them

Rex went as far as to say "UP TO VIRGIN AUSTRALIA TO COMMENT ON THIS MATTER”.

 

[Bagpuss]

The day time flight in VA J is ok but I hate the overnight ones and avoid if possible

Overnight international short haul for VA is inevitable I think.
Whilst any aircraft is in the air I believe VA still need to keep open some sort of operating centre open and 3 flights from Perth to the East Coast isn't going to cut it.
Budget orientated travelers dont tend to mind.

It would interesting if the range is there for the 700 (with no business class) for PER <>DPS. Though they pulled out of Perth a long time ago. I doubt the Port Hedland service would return.

 

[jakeseven7]

Rex went as far as to say "UP TO VIRGIN AUSTRALIA TO COMMENT ON THIS MATTER”.

There you go… that is all we need to know. Very interesting.

 

[HS-TQE]

It would interesting if the range is there for the 700 (with no business class) for PER <>DPS. Though they pulled out of Perth a long time ago. I doubt the Port Hedland service would return.

The -700s would be ideal for PER-DPS, although IIRC, VA International flights are meant to be flown by the VAi registered 737s, some of them formerly ZK registered when they were under the Pacific Blue AOC (NZ).

The -700s will fall under the mainline VAA AOC, and there are lingering rumours that VARA's AOC will eventually be merged under VAA, bringing in the subfleet of (all economy) A320s based in PER under VA mainline.

 

[Harrison_133]

The -700s would be ideal for PER-DPS, although IIRC, VA International flights are meant to be flown by the VAi registered 737s, some of them formerly ZK registered when they were under the Pacific Blue AOC (NZ).

I don’t mean to be pedantic but… none of the old ZK- registered Pacific Blue aircraft are on the VAI certificate anymore. They either went to Tiger, back to VAA or have since left the fleet (Rex has 1 of them now).

VAI is purely sky interior aircraft only. You definitely won’t be on one of the old clunkers all the way to Bali.

The -700s will fall under the mainline VAA AOC, and there are lingering rumours that VARA's AOC will eventually be merged under VAA, bringing in the subfleet of (all economy) A320s based in PER under VA mainline.

Again… nothing is being merged and there are no “lingering rumours” of AOCs being merged or the A320s joining VAA, I think this is just your own speculation.

Anyway, back to the main topic…

ADL-DPS is a good addition. I do notice MEL-DPS has a second daily flight over the peak period too. Perth would be a logical resumption, restoring the network they palmed off to Tiger. AirAsia is still below its pre-pandemic frequency and I don’t see Garuda/Citilink returning.

 

[HS-TQE]

I don’t mean to be pedantic but… none of the old ZK- registered Pacific Blue aircraft are on the VAI certificate anymore. They either went to Tiger, back to VAA or have since left the fleet (Rex has 1 of them now).

VAI is purely sky interior aircraft only. You definitely won’t be on one of the old clunkers all the way to Bali.

Again… nothing is being merged and there are no “lingering rumours” of AOCs being merged or the A320s joining VAA, I think this is just your own speculation.

Considering there's no point in keeping the VARA AOC for only 7 Airbus Aircraft and the rumours come off the various pilot forums (I won't mention them here but I suspect most know the prominent pilots forum), you are free to take the rumor with a grain of salt. I'm just the messenger.

To extend on that pilots forum rumor, keeping VARA open for only 7 aircraft would go against Bain's cost efficiency/cutting methods as a PE firm, as it duplicates staff with VAA.

Moving on.

Anyway, back to the main topic…

ADL-DPS is a good addition. I do notice MEL-DPS has a second daily flight over the peak period too. Perth would be a logical resumption, restoring the network they palmed off to Tiger. AirAsia is still below its pre-pandemic frequency and I don’t see Garuda/Citilink returning.

Batik are planning a return on PER-DPS, plus JQ and AirAsia Indonesia both back on the route, although the later is still below pre-covid capacity. There may be an opportunity for VA with GA/Citilink gone for the foreseeable future but it may depend on AirAsia/Jetstar ramping up beforehand

 

[Saab34]

Not everyone wants to fly loco’s to Bali which is why VA is a welcome addition. However it would be good if they could get USB ports at every seat.

PER-DPS once a day or 10 weekly would be great.

 

[HS-TQE]

Not everyone wants to fly loco’s to Bali which is why VA is a welcome addition. However it would be good if they could get USB ports at every seat.

PER-DPS once a day or 10 weekly would be great.

Batik Air are planning to return on PER-DPS before the end of the year, and they're a full service carrier including in Y, às opposed to VA's hybrid/Low Cost service in Y

 

[Harrison_133]

Considering there's no point in keeping the VARA AOC for only 7 Airbus Aircraft and the rumours come off the various pilot forums (I won't mention them here but I suspect most know the prominent pilots forum), you are free to take the rumor with a grain of salt. I'm just the messenger.

I also read said forum (like others here I suspect) and those discussions were about having the domestic 737 fleet on a single certificate and the integration of pilot groups, nothing about moving the A320s over too. I know I’m being overly pedantic here and I really don’t mean to shoot the messenger, but I don’t think your interpretation is entirely accurate.

On a side note, I do recall a while back seeing a headline for a paywalled article where Jayne hinted the possible phase out of the A320s at a conference in Doha, but I can’t access the article so I’m not entirely sure if it’s substance

Anyway… the AvGeek in me has strayed far far away from today’s Bali announcement. Apologies everyone.

Batik Air are planning to return on PER-DPS before the end of the year, and they're a full service carrier including in Y, às opposed to VA's hybrid/Low Cost service in Y

Batik Malaysia/Malindo has recently commenced KUL-DPS-PER for the first time too, but it doesn’t operate daily. They’re not full service in Y anymore either, and not all of their 737 MAX’s have J seats fitted.

Out of interest, when is Batik Indonesia resuming the route?

However it would be good if they could get USB ports at every seat.

Most VAI aircraft operating the Bali flights have USB ports in every seat. From memory, YIJ & YIU are the 2 aircraft that don’t have them in Y.