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

[justinbrett]

You are correct, although QR was in Oneworld when the QF-EK relationship was renewed for another 5 years. Its what drove QR and VA together.

EK and QF agreed to a 10 year deal from the get go (sure ACCC only approved 5 years but the two airlines had a deal)

QR has had a beef with QF long before 2018. It planned to leave oneworld, citing QF and AA as reasons. Asian travelers hit by Qatar Airways threat to quit Oneworld

Arguably QR’s strategy is no different to EK’s, it will work with its own patchwork of partners that helps them the most. Oneworld when it suits but not a requirement.

The reason why these Gulf carriers don’t make great alliance members is that in many ways they see themselves as a global carrier, they don’t need other long haul airlines to work with as their reach is global. They just need partners for the domestic and short international connections.

I have no problem with that, I think both QF and VA are sensible for making their respective arrangements, but it’s quite different to a traditional alliance partner. Even with QF, you’re either going to LHR on QF metal via SIN or QF is selling you an EK ticket. It’s not like other alliance partners where it’s more integrated.

 

[jakeseven7]

Did Virgin actually close their Sydney corporate office?

Apparently they are struggling to find talent to fill key roles in Brisbane and are quietly allowing people to still work in Sydney.

Which makes complete sense given the concentration of corporate talent in Mel/Syd, but I thought they announced the physical office closure there…

 

[jase05]

Did Virgin actually close their Sydney corporate office?

Apparently they are struggling to find talent to fill key roles in Brisbane and are quietly allowing people to still work in Sydney.

Which makes complete sense given the concentration of corporate talent in Mel/Syd, but I thought they announced the physical office closure there…

I thought there was talk of a new Sydney office late last year. I don’t know if this went ahead or not

 

[Saab34]

They are at 420 George St I recall? My Brother works in the same building. They upgraded the space just prior to Christmas apparently, doubt they would be going anywhere, it was a big reno from what he told me.

Most big customer/billion dollar businesses have opened up workspaces in Sydney city. Coles and Woolworths have smaller office/work environments now in the city. Wesfarmers also. Digital talent is fairly centralised on Sydney also, often some form of digital team for most based in the city, majority of IT contractors who work on projects are Sydney based also. Would be suicidal dumping a Sydney office

 

[jakeseven7]

They are at 420 George St I recall? My Brother works in the same building. They upgraded the space just prior to Christmas apparently, doubt they would be going anywhere, it was a big reno from what he told me.

Most big customer/billion dollar businesses have opened up workspaces in Sydney city. Coles and Woolworths have smaller office/work environments now in the city. Wesfarmers also. Digital talent is fairly centralised on Sydney also, often some form of digital team for most based in the city, majority of IT contractors who work on projects are Sydney based also. Would be suicidal dumping a Sydney office

The QLD government tried to shut it as part of the deal when VA1 collapsed.,, but BNE simply doesn’t have the depth of talent pool that a MEL/SYD has so it’s not surprising to hear they are still being key roles in SYD.

 

[Saab34]

Virgin IPO may not fly for next boss

There are plenty of big questions for the airline’s next chief executive – including what the carrier will look like, and how it will be owned, in the long run.

www.afr.com

As Jayne Hrdlicka heads for the departure lounge at Virgin Australia, her successor will need to grapple with an airline that, while profitable, lacks a compelling reason for Australians to love it. Sandwiched between Qantas and its low-cost carrier Jetstar, Hrdlicka has made great strides in simplifying Virgin’s proposition.

But the resulting airline – which only flies short-haul international and domestically in Australia, using a single fleet type and dual-class cabin – is hardly exciting fodder for international airline talent considering their next move. ...

 

[Doctore1003]

Virgin IPO may not fly for next boss

There are plenty of big questions for the airline’s next chief executive – including what the carrier will look like, and how it will be owned, in the long run.

www.afr.com

The main argument of the article is that selling Virgin to another airline is better for Bain (as it's likely to get more $$$ that way) and the flying public (as it will lead to more investment and competition). I agree with many of the points.

Possible buyers mentioned are SQ (of course), Qatar, United and Alaska (?!)

 

[HS-TQE]

* First mentioned candidate is a known "tyre kicker" who has failed 3 times with their previous Australian investments. Losing Billions of Dollars combined.across the 3 investments.
* Second mentioned is the current 'usual suspecr'
* Third is the considered 'dark horse. Could also.be useful if they want to free up LAX aircraft io beef up their SFO fortress.
* Fourth is out of left field, but considering their partnership with QF, is unlikely.

 

[Doctore1003]

What I found most interesting about the article was the point that fund managers don't want to invest in mid-market companies. Where's the growth gonna be when you're being squeezed from both directions (Qantas and Jetstar)?

Hence the argument that Bain can get more $$$ by selling to an airline that wants a strategic foothold in the AU market.

 

[victorpenfold]

The QLD government tried to shut it as part of the deal when VA1 collapsed.,, but BNE simply doesn’t have the depth of talent pool that a MEL/SYD has so it’s not surprising to hear they are still being key roles in SYD.

Fun little Sydney <redacted> going on in here, but incorrect, and totally I’ll-informed about the state of the digital industry in Brisbane

 

[Saab34]

Alaska will be tied up with the HA deal, and the subsequent changes that the ‘lite’ merger between them will have over the remainder of this decade. Very much impossible they would get involved.

Don’t get me wrong. AS would be a great owner.

 

[RooFlyer]

Here's a 'what if ...'

What if QR bought control of VA and then caused it to join StarAlliance (lets assume SA accepted them)? VA becomes QR's Australian domestic feeder and stretch its reach into the south Pacific.

QR could have a tight agreement with VA, allowing QR PC members to earn Avios on VA, even with VA code (I mean, QR can allow anyone they want to earn their Avios). Velocity flyers earn SCs on VA flights as before, but adding QR flights as well.

Velocity SCs and QR Avios become inter-changeable, like VA/SQ now.

VA maintains its Velocity program that gets integrated into Star Alliance program redemptions.

VA, as part of Star Alliance would have better alignment with United across the Pacific (they have a partnership now), ANA to Japan etc.

Some VA flyers might then be more attracted to SQ, but if they wanted to be nasty, QR could arrange that the SQ earn by Velocity members is like QR on QFF now.

For me this is an ideal scenario

 

[Saab34]

What price would you put on Virgin for a say, 50% trade sale? $2-3b?

 

[MEL_Traveller]

seems to be some new ‘thing’ ex SYD… adding ‘nice to see you’ at the end of each staff/customer interaction. Got a boarding pass at check-in counter which was concluded with ‘nice to see you’. Had a query at the service desk in the lounge and as the boarding pass was handed back ‘nice to see you’. Scanned BP at the gate and ‘nice to see you’.

Not ‘nice to see me’ in Melbourne however

 

[MooTime]

seems to be some new ‘thing’ ex SYD… adding ‘nice to see you’ at the end of each staff/customer interaction. Got a boarding pass at check-in counter which was concluded with ‘nice to see you’. Had a query at the service desk in the lounge and as the boarding pass was handed back ‘nice to see you’. Scanned BP at the gate and ‘nice to see you’.

Not ‘nice to see me’ in Melbourne however

Thats nice.

Nobody happy here in Melbourne during winter.
Even outside of winter it's getting tough to be happy down here.

 

[twinaisle]

seems to be some new ‘thing’ ex SYD… adding ‘nice to see you’ at the end of each staff/customer interaction. Got a boarding pass at check-in counter which was concluded with ‘nice to see you’. Had a query at the service desk in the lounge and as the boarding pass was handed back ‘nice to see you’. Scanned BP at the gate and ‘nice to see you’.

Not ‘nice to see me’ in Melbourne however

It shouldn't be nice as it would have been "wonderful"

 

[pauly7]

It shouldn't be nice as it would have been "wonderful"

Hopefully Jayne takes ‘Wonderful’ out in her handbag when she takes the one way walk off the plank

 

[MEL_Traveller]

It shouldn't be nice as it would have been "wonderful"

lol. That might have been a step too far

Lovely service on this evening’s flight, remembered by the CM. Wifi working too. Courtesy block on the seat next to me.

‘Nice!’

 

[MEL_Traveller]

Side issue, has the acknowledgement of country been suspended? Haven’t heard it on any of the last four flights.

 

[Harrison_133]

Side issue, has the acknowledgement of country been suspended? Haven’t heard it on any of the last four flights.

I had it on one of my flights on Tuesday, but not the other. In my experience, it depends on the CM.