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

[AustraliaPoochie]

Really, they should make up their mind.
Do they want to be a LCC and charge for everything, they might as well be that...
Or do they want to like what they were, ie, VA1, pre vol admin.
Mid range is so, how to put it, half hearted.
They might as well go LCC with a FF program, put it down "pat", if they don't want to go to pay to go the US/UK/HK, so be it, but say so.
At least then we know what to expect.
LCC means no lounge access, int flying, that is, call it then, call themselves a LCC with a FF program.

 

[Saab34]

It’s clear they don’t want to go LCC as they don’t want to cede the high margin corporate accounts and traffic. However they don’t want to go full blown full service as they don’t want to wear the extra costs associated with that model. They want to sit half way, maximise margin whilst keeping costs down.

 

[SCM]

It’s clear they don’t want to go LCC as they don’t want to cede the high margin corporate accounts and traffic. However they don’t want to go full blown full service as they don’t want to wear the extra costs associated with that model. They want to sit half way, maximise margin whilst keeping costs down.

I thought that's what Qantas does?

Well if it works, it works...

 

[dajop]

They want to sit half way, maximise margin whilst keeping costs down.

Oh, they want to be a legacy North American or legacy European carrier then.

 

[HS-TQE]

I thought that's what Qantas does?

Well if it works, it works...

Qantas doesn't charge for food or drinks. What VA is doing is akin to most US legacy carriers, Jeju Air (Korea) or Batik Air. Plus the "Value Carrier" term is also used for 'Hybrids'.

"Value Carriers" in Australasia/Pacific such as VA and Batik Air would be closer to the Euro Legacy Carriers. Both are somewhat a 'glorified' LCC in Y with a Recliner J and a FF program.

Comparing Virgin and Batik, VA's basic Y fare is Carry On+Seat+Tea/Water only, whereas Batik's Y basic fare is Checked Luggage/Carry On+Seat only. Both carriers have 'wi-fi' entertainment available.

The Euro Legacies have a all-Y layout with the EuroBusiness (middle seat blocked) in their 'Value Carrier' models whereas Virgin and Batik at least has small 'recliner' J cabins.

The US legacies has more inclusions in Y than the Euro "Value Carriers" and VA/Batik.

 

[AustraliaPoochie]

When they took away eligible sector for status on their cheapest fare, when I do fly VAd, now, I find a lot of the times, the lowest fare is always, "not available".
So have to pay the next fare up, about $30 more, and is an eligible sector for status.
Mid level, ok, lets wait and see what happens when they (Bain) do sell back the shares.
Wonder if Aust shareholders would buy VA3 shares again.
And who the majority shareholder/s will be this time round.

 

[RooFlyer]

If we are talking about the reason for lack of IPO ( with some “insiders” here implying that it’s ‘failed’) I don’t think you really need to look much further than Qantas share price. It’s absolutely tanking, down 28% in the past 6 months.


If you want to set the price for a share in an Australian aviation carrier, what’s your nearest benchmark and gauge of investor sentiment? Qantas. So why tie yourself to an anchor?

The best advice David Marr would have given Virgin regarding the IPO is - “don’t - so see you later”.

I mean, isn’t it obvious that if you hold an asset that’s making good money yet the market price for the asset is falling, of course you’d hang onto it and just keep making the profit for yourself.

Private Equity has exit timelines, but they don't cut their own throats just to meet them.

 

[A321]

Full steam ahead with "preferred seating". All seat maps updated with the change.

Our fleet

We pride ourselves in being your airline of choice, so we have taken every step to ensure we operate one of the world’s most advanced and modern fleet of aircraft.

www.virginaustralia.com

 

[yachty]

It’s clear they don’t want to go LCC as they don’t want to cede the high margin corporate accounts and traffic. However they don’t want to go full blown full service as they don’t want to wear the extra costs associated with that model. They want to sit half way, maximise margin whilst keeping costs down.

That seems to be the way, which I find interesting because it almost takes them back where they started when they were Virgin Blue... and it seemed like we heard a lot over the intervening years about how that model had run its course against QF/JQ.

 

[AIRwin]

Full steam ahead with "preferred seating". All seat maps updated with the change.

Our fleet

We pride ourselves in being your airline of choice, so we have taken every step to ensure we operate one of the world’s most advanced and modern fleet of aircraft.

www.virginaustralia.com

It shows 9 B737-700 with Business class?

 

[jase05]

It shows 9 B737-700 with Business class?

I thought they were retro fitting J to some of them?

 

[Saab34]

That seems to be the way, which I find interesting because it almost takes them back where they started when they were Virgin Blue... and it seemed like we heard a lot over the intervening years about how that model had run its course against QF/JQ.

Once you dip your toes into the corporate revenue pool it’s very hard to pull them out.

The other issue is giving away corporate revenue to the competition.

 

[ben95]

Oh, they want to be a legacy North American or legacy European carrier then.

I think that’s a fine model. I couldn’t care less about having a “premium” experience on a short domestic flight. I do care about basic amenity like a water/tea/coffee/carbonated beverage and maybe occasionally a snack so I think the current VAd offerings are pretty close to what I would expect. And for a longer journal I would want a full serviced product with a proper business class offering so that all make sense to me.

The US legacies has more inclusions in Y than the Euro "Value Carriers" and VA/Batik.

The only additional inclusion you’d get from US legacies in domestic Y is free beverage out of a can (like a coke or apple juice). But for the $35 they charge you for a piece of checked bag I can grab myself many many beers or coke to bring on board. And don’t forget if you travel domestically in business you don’t get access to the lounge.

 

[Saab34]

This could get ugly, and expensive.

Virgin ground crew step towards strike for new pay deal

Ground crew could walk off the job by mid-November, with cabin crew and pilots not far behind them as pay talks sour at Virgin Australia.

www.afr.com

 

[Must...Fly!]

Sympathetic but I am glad the article makes mention of Virgin's commitment to keeping ground operations in house, in cities where it is so. Unlike Qantas illegally sacking workers.

 

[RooFlyer]

This article may be of interest to those breathlessly speculating why the Virgin IPO hasn’t appeared this year. ( AFR on - line)

Two things holding back Australia’s IPO market​

As I’ve said before, it’s all about the market, not about road shows. And for Virgin of course the market segment critically includes the tanking Qantas price.

 

[jakeseven7]

This could get ugly, and expensive.

Virgin ground crew step towards strike for new pay deal

Ground crew could walk off the job by mid-November, with cabin crew and pilots not far behind them as pay talks sour at Virgin Australia.

www.afr.com

Timing incredibly unfortunate for anyone that has to fly VA2…

 

[twinaisle]

Timing incredibly unfortunate for anyone that has to fly VA2…

It's a shame that the company is letting it get to this point for Engineering/ground crew/cabin crew/pilots.

 

[Saab34]

Pilots took a large pay cut under Bain so I think it’s only fair they get that reinstated.

I understand cabin crew also signed inferior contracts.

Company is now out of the gutter. Pay the a decent wage.

 

[Bagpuss]

Looks like they have walked away (or lost) their VARA contract with Consolidated Minerals. Likey due to Woodie Woodie being serviced by F100’s and not able to handle the A320 / B737-700 ?

National Jet Express lands 2 new WA FIFO contracts

NJE will operate two weekly charter flights from Perth to Kalgoorlie and Kambalda using its E190 and Dash 8-400NG aircraft for an unnamed Goldfields mining company, as well as three weekly E190 flights between Perth and Woodie Woodie for Consolidated Minerals.

australianaviation.com.au