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

[AustraliaPoochie]

Seeing that both JB and CL have both left their respective former airlines, maybe JH and GF might start a convo.
Or should.
Dreamer hat on: Au (SYD/BNE/MEL/ADL/PER) -> AKL -> HND/NRT might be nice, Dreamer hat off.

 

[HS-TQE]

Seeing that both JB and CL have both left their respective former airlines, maybe JH and GF might start a convo.
Or should.
Dreamer hat on: Au (SYD/BNE/MEL/ADL/PER) -> AKL -> HND/NRT might be nice, Dreamer hat off.

Ideally JH and GF should be talking, and historically NZ/VA is a logical partnership (pre JB/CL).

However in this day and age considering insider reports from here and elsewhere (such as News Corp articles, other forums) that the NZ/QF codeshare partnership is generating more revenue than the former NZ/VA Joint-Venture, the business case for NZ and VA getting back together would be very weak, and industry today probably doesn't have much 'leeway for egos' and most airlines are tight on CapEx as opposed to the previous decade.

 

[Saab34]

I would be happy to see VA just be a 737 operator, get Delta A350 to takeover the MEL/BNE-LAX routes and I’ll be happy.

At least being a 737 only operator chances of the place caving in again is much lower. A lot of business complexity avoided and if fuel prices jump again in future years, it’s not a widebody fleet sending the whole company into red ink again.

 

[henrus]

I would be happy to see VA just be a 737 operator, get Delta A350 to takeover the MEL/BNE-LAX routes and I’ll be happy.

Deltas already made it clear theyre not interested in reactivating the partnership until VA resume flights to the US. VA need to get something going to the US otherwise we'll never see anything close to the previous JV.

 

[jase05]

Deltas already made it clear theyre not interested in reactivating the partnership until VA resume flights to the US. VA need to get something going to the US otherwise we'll never see anything close to the previous JV.

Yeah VA don’t need a huge fleet of wide bodies. Just get the US and Japan up and running on their metal and look at a couple of other partners potentially to fill in the gaps

 

[HS-TQE]

Taking into consideration DL's last statement, it indirectly tells the reader that DL is not interested in any Australian port out of SYD. DL 'may' look at another one of their hubs outside of LAX (e.g ULR from ATL, or SEA-SYD), but that's as far as it goes for DL's own Australian ops.

Unless if UA somewhat out of the 'blue' buys a stake from Bain, VA and DL are basically stuck at the hip.

Keep in mind that a JV means both carriers have to SHARE the costs, so if they make money, it's 50/50, if they both lose money, they lose 50/50.

So it'll be either SYD on their own with a VA codeshare (should VA chose to leave long-haul entirely at the end of 2022), or if VA choses to re-enter longhaul, a reactivated JV with VA doing MEL/BNE-LAX. All that it basically needs is 5-6 leased widebodies (4 for US ops and 1-2 for Asian medium-haul ops).

 

[Obzerva]

Taking into consideration DL's last statement, it indirectly tells the reader that DL is not interested in any Australian port out of SYD. DL 'may' look at another one of their hubs outside of LAX (e.g ULR from ATL, or SEA-SYD), but that's as far as it goes for DL's own Australian ops.

Unless if UA somewhat out of the 'blue' buys a stake from Bain, VA and DL are basically stuck at the hip.

Keep in mind that a JV means both carriers have to SHARE the costs, so if they make money, it's 50/50, if they both lose money, they lose 50/50.

So it'll be either SYD on their own with a VA codeshare (should VA chose to leave long-haul entirely at the end of 2022), or if VA choses to re-enter longhaul, a reactivated JV with VA doing MEL/BNE-LAX. All that it basically needs is 5-6 leased widebodies (4 for US ops and 1-2 for Asian medium-haul ops).

How out of the blue is that VA and UA partnership looking now

 

[henrus]

How out of the blue is that VA and UA partnership looking now

Not out of the blue at all... Just yesterday I was again saying how unhappy DL is. Only time will tell but I feel like the biggest loser in this is actually DL.

 

[jakeseven7]

Not out of the blue at all... Just yesterday I was again saying how unhappy DL is. Only time will tell but I feel like the biggest loser in this is actually DL.

 

[HS-TQE]

How out of the blue is that VA and UA partnership looking now

Well there ya go. A 'fluke' prediction

Safe to say that increasingly kills off VA long haul apart from having to deal with the HND slot. Unless if course they want to do ex BNE on behalf of UA and the HND slot (requires 4 leased WBs all bases in BNE at most)

UA could probably upgauge to the 77W ex SYD/MEL to carry the uptick in VA passengers.

 

[jakeseven7]

How out of the blue is that VA and UA partnership looking now

One major roadblock on VA’s path to…… has been junked!

 

[HS-TQE]

One major roadblock on VA’s path to…… has been junked!

Just need the other one.. to well 'fall of the cliff' in regards to profits

 

[jakeseven7]

Just need the other one.. to well 'fall of the cliff' in regards to profits

Oh they are doing pretty well at that! I’m still surprised they are still going and EK or QR hasn’t bought them… clearly the royal money is still flowing

 

[HS-TQE]

Oh they are doing pretty well at that! I’m still surprised they are still going and EK or QR hasn’t bought them… clearly the royal money is still flowing

I'm speaking of another carrier, the one that had a partnership with the local rival and is making millions more profit than the former JV

A lot of factors goes with that block, and are there any people from the old CEO era that's still there.

 

[antycbr]

I'm speaking of another carrier, the one that had a partnership with the local rival and is making millions more profit than the former JV

A lot of factors goes with that block, and are there any people from the old CEO era that's still there.

I think the JV made sense before Covid. After Covid, capacity is going to take some considerable time to come back and remember that NZ and QF are not allowed to coordinate on the core Tasman flying, only on the oncarriage either side if I recall correctly.

 

[HS-TQE]

I think the JV made sense before Covid. After Covid, capacity is going to take some considerable time to come back and remember that NZ and QF are not allowed to coordinate on the core Tasman flying, only on the oncarriage either side if I recall correctly.

Considering basically all airlines are cost conscious those days and CapEx light outside of core flying.

If a cheaper partnership (with restrictions) earns more than a full blown (more expensive) JV with basically unlimited restrictions, common sense says the carrier would want to hold onto to the 'cheaper' partnership.

Just a number of factors come into play with this game changer. Will Bain 'force' *A to lower their fees? Will UA pay 100© of VA's joining costs, and as for that carrier will a VA interline add more to their bottom line despite earning more revenue in a cheaper restricted partnership with their rival?

 

[jakeseven7]

I think the JV made sense before Covid. After Covid, capacity is going to take some considerable time to come back and remember that NZ and QF are not allowed to coordinate on the core Tasman flying, only on the oncarriage either side if I recall correctly.

QF and NZ are frenemies at best unless QF is allowed to buy NZ out.

NZ will make their way back to VA2 if they can present a case that makes them more money…. But QF was pouring code onto NZ - far far higher than VA1 ever could… so VA2 would have to come up with something interesting….

 

[henrus]

I guess there is only one partnership that could round out this crazy year...

 

[HS-TQE]

With the constant 'Bain circling ZL' rumours, there's a better chance of ZL regional being absorbed into the VARA aoc as it is with the RexJet operation liquidated.

 

[jakeseven7]

I guess there is only one partnership that could round out this crazy year...

View attachment 267071

This would make so much sense and cents on so many levels….