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

[Saab34]

They still need to deal with Pilots also. The group who took the largest pay cut, will no doubt fight hard to restore all that.

It’s interesting as they essentially via the administration cut costs and renegotiated terms. That’s a once in a lifetime opportunity for any business to bring its costs down. They kept many high margin corporate accounts. From what I understood, it was to become a leaner one fleet business, more value fares, while holding the profitable business core. Loads are high. They have the loyalty arm. They cut off most of the fat. The business should really be in a strong earnings position, but they don’t seem to be.

 

[MEL_Traveller]

No reason to doubt the accuracy and not sure if it's been posted before or not. But operational spend is about $25m above budget this year, apparently. Cost saving program on the horizon/underway to reduce over the next 3 years.

One wonders how important Boeing & the MAX aircraft are to fixing this in the longer term, the reduced fuel burn would surely knock a significant chunk of saving in to this supposed operational overspend. All the issues they've had over the last 12 months with staffing and IR issues would've increased costs across the board as well, with those mostly solved it may help.

Assuming the above is correct, I would agree an IPO is not coming in 2024, or possibly even 2025. It's not a lot of money in the scheme of things but they probably need time to show they're going in the right direction at least.

How about running flights on time? That should save a fair chunk of airport fees, gate fees and lost revenue from pax cancelling.

 

[Saab34]

That is also true. They have lost revenue from myself and now flying Rex on MEL-SYD, and other flights I’ve pushed to JQ. I’ve let my Velocity drop down a tier and for the first time in my life, I don’t really value the whole Virgin experience anymore. Back in the day anything less than Gold would not suffice.

I know I’m not the only one. All adds up at the end if the day. Look after your customers.

 

[MEL_Traveller]

That is also true. They have lost revenue from myself and now flying Rex on MEL-SYD, and other flights I’ve pushed to JQ. I’ve let my Velocity drop down a tier and for the first time in my life, I don’t really value the whole Virgin experience anymore. Back in the day anything less than Gold would not suffice.

I know I’m not the only one. All adds up at the end if the day. Look after your customers.

Yes! 4 calls and 8 agents, plus 4 letters to customer care to get an issue looked at. And not resolved. Finally got through to brisbane call centre and issue resolved in 5 minutes.

Ironically I used the hours and hours of delays to make those 4 calls and write in via email.

Rex flight today… oh my gravy…. outstanding, Ok the main wasn’t as good as VA’s offering, but the service was outstanding. Even with napkins folded around the sparkling wine bottles when served.

And get this… one of the economy crew came up to serve in business class!!! On VA that never ever happens, and one poor soul has to do the complete service by themselves. And no disappearing up the back after completing the meal like they do on VA. Nope, stayed in the cabin to offer top ups, chat with pax, offering a ‘wine flight’ to anyone who was interested.

It would take minor changes for VA to improve its customer service. But no, let’s have a ‘major announcement’ for a cabin divider. And let’s cut costs elsewhere.

 

[HS-TQE]

One wonders how important Boeing & the MAX aircraft are to fixing this in the longer term, the reduced fuel burn would surely knock a significant chunk of saving in to this supposed operational overspend. All the issues they've had over the last 12 months with staffing and IR issues would've increased costs across the board as well, with those mostly solved it may help.

At least the first eight 737-8 (Max) are registered to Virgin Australia International. This is also reflected in the NS24 schedules where the first 4 are primarily flying international with domestic rotations inbetween. I'm assuming this continues to be the case when the next 4 are delivered in Q2/Q3 and eventually replacing the scimitar 738s flying on VAi for NW24/25.

Perhaps the scimitar 738s could be put on SYD/MEL-PER transcons when more -8s come online throughout 2024.

 

[Must...Fly!]

On VA that never ever happens,

Not sure that's accurate, I've seen it a few times myself. They also have a job to do in the main cabin anyway.

 

[twinaisle]

Yes! 4 calls and 8 agents, plus 4 letters to customer care to get an issue looked at. And not resolved. Finally got through to brisbane call centre and issue resolved in 5 minutes.

Ironically I used the hours and hours of delays to make those 4 calls and write in via email.

Rex flight today… oh my gravy…. outstanding, Ok the main wasn’t as good as VA’s offering, but the service was outstanding. Even with napkins folded around the sparkling wine bottles when served.

And get this… one of the economy crew came up to serve in business class!!! On VA that never ever happens, and one poor soul has to do the complete service by themselves. And no disappearing up the back after completing the meal like they do on VA. Nope, stayed in the cabin to offer top ups, chat with pax, offering a ‘wine flight’ to anyone who was interested.

It would take minor changes for VA to improve its customer service. But no, let’s have a ‘major announcement’ for a cabin divider. And let’s cut costs elsewhere.

I take it you'll fly rex from now on?
Rex also have 5 crew onboard while VA have 4.

 

[jase05]

Maybe it’s the routes I fly or maybe it’s luck but I’ve had a pretty good run with VA in regards to delays/cancellations and haven’t encountered many poor crews at all. The majority do a great job and I’m more than happy with VA. Obviously YMMV
I will add that I’ve also had a recent run with QF in the last few months.
Hopefully a sign that we are getting back to some normality

 

[MEL_Traveller]

I take it you'll fly rex from now on?
Rex also have 5 crew onboard while VA have 4.

Most of the VA flights I’m on have five crew? Although they are mostly evening departures. At least a couple months ago during a delay we had four crew in the front galley chatting, and one as down the back looking after the doors, which were armed.

I did wonder about crew levels, I wasnt sure what the legal pax-crew ratio is inAustralia? I also wondered whether to solve some of the problems they could go to four crew instead of five? But is four the norm with VA?

ZL had four crew today for 159 pax.

Unfortunately for VA, yup, will be Rex or Qantas for me from now on. The 50% on time arrivals for December sealed the deal

 

[MEL_Traveller]

Maybe it’s the routes I fly or maybe it’s luck but I’ve had a pretty good run with VA in regards to delays/cancellations and haven’t encountered many poor crews at all. The majority do a great job and I’m more than happy with VA. Obviously YMMV
I will add that I’ve also had a recent run with QF in the last few months.
Hopefully a sign that we are getting back to some normality

The majority of CMs are great! No doubt about that. But they’re really let down by a few bad ones that don’t seem to care. The one CM who refused to do any service prior to take-off was the game changer for me.

Not sure that's accurate, I've seen it a few times myself. They also have a job to do in the main cabin anyway.

It’s not usual though. It’s not uncommon for the CM to head down the back after completing meal service, leaving the cabin unattended. That means trash aren’t collected and drinks aren’t offered.

ZL has an increased service in the main cabin, with snacks as well as tea, coffee and water. So not sure that explains the differing crew availability in the front cabin.

 

[anyonebutqantas]

Also agreed that Rex is providing far better service than its competitors.

I think John Sharp's wife was an Ansett FA so no doubt he has a good woman whispering in his ear about the right way to service a flight!

 

[HS-TQE]

ZL is just taking the service VA 1.0 previously had pre-COVID in Y offering the snacks and finger sandwiches that VA previously had. If ZL are going to be a full service carrier in mainline they could at least offer a 2nd round of snacks in Y for those that may request it or alternatively offer a BoB menu in Y (which VAd 1.0 did when they formerly operated as "full service").

 

[Saab34]

I don’t pick ZL for the snacks or lounges. I pick them for the on time performance.

Virgin can get my business back, if they fix that. The ball is in Management’s court on that one.

 

[MEL_Traveller]

I don’t pick ZL for the snacks or lounges. I pick them for the on time performance.

Virgin can get my business back, if they fix that. The ball is in Management’s court on that one.

Yes, that would even the playing field. But in the main cabin, if both were leaving on time, a snack is nice to pass the time!

The other thing QF/VA really need to fix is the boarding process. ZL boards with zero queues in the jetbridge. QF and VA inch along. No obvious reason, unless VA/QF are ‘business heavy’ with lots of extra cabin baggage?

 

[dk4]

Most of the VA flights I’m on have five crew?

I don't think I have ever been on a 5 cabin crew VA 737 flight. 90% of the time, the CM does an introduction prior to the safety briefing, and IME it's always 6 names; 2 driving at the front of the bus, and 4 in the back with the SLF. YMMV

 

[Saab34]

Crew training perhaps 5?

 

[MEL_Traveller]

I don't think I have ever been on a 5 cabin crew VA 737 flight. 90% of the time, the CM does an introduction prior to the safety briefing, and IME it's always 6 names; 2 driving at the front of the bus, and 4 in the back with the SLF. YMMV

Fair point.

I always thought there were four, until the day we had a delay after pushback, but still at the gate. The four crew were chatting in the galley but confirmed there was another crew member at the rear two doors.

I assumed they only read out the names of those crew performing the safety demo.

I see VA and QF have exemptions to operate the 737 with four crew instead of five.

 

[twinaisle]

It's 1 crew per 50 pax.
VA do 4
Qf followed suit after their trails from 5 to 4 crew.

Sometimes 5 if there's a new kid or someone there to check SOP of another crew etc.

 

[twinaisle]

Rex flight today… oh my gravy…. outstanding.

You seem to always have problems with VA so I guess rex would be better for you. Glad you have found another airline to fly.

 

[MEL_Traveller]

You seem to always have problems with VA so I guess rex would be better for you. Glad you have found another airline to fly.

Yeah But that’s an outcome of the sheer volume of flights. The more flights, the more problems that are going to get generated. What let’s VA down is that they’re not good with service recovery, either on the day of travel, or pre/post travel.

Plus the (very) small number of CMs and ground staff that really shouldn’t be working if they’re so unhappy.