will VARA ever expand to the east-coast?

[Lucass]

Does anyone think that VARA will eventually expand into east coast routes and they might deploy E-190E2s or even 737-700s on routes which qantas & rex fly and have ridiculously high prices like Mel, Syd-mildura, albury, wagga wagga, coffs harbour etc?

 

[Simon Overall]

Does anyone think that VARA will eventually expand into east coast routes and they might deploy E-190E2s or even 737-700s on routes which qantas & rex fly and have ridiculously high prices like Mel, Syd-mildura, albury, wagga wagga, coffs harbour etc?

Wouldn't make any sense for them to do so whatsoever.

 

[Lucass]

Wouldn't make any sense for them to do so whatsoever.

Why? They flew these routes previously, people would definitely choose VA over QF and Rex if their prices were lower

 

[Simon Overall]

Why? They flew these routes previously, people would definitely choose VA over QF and Rex if their prices were lower

What financial sense would it make to go back to loss making markets yo undercut existing competition?

 

[Saab34]

The -700s are not VARA they are VA.

I would assume VARA will be merged into VA over time as it’s been reported the fleet will be down to only E190s by 2027.

It would probably be cheaper to use Air North E190s on those regional like routes, compared to the E2s which cost a bomb.

 

[Lucass]

What financial sense would it make to go back to loss making markets yo undercut existing competition?

Economies of scale. If VA flew Syd to Coffs harbour, using a 737-700 or e-190E2 they could have prices significantly lower than rex and Qantas (cheapest fare on that route is generally $169) and make a profit. Would definitely be better than QF and Rex's old turboprops

 

[Simon Overall]

Economies of scale. If VA flew Syd to Coffs harbour, using a 737-700 or e-190E2 they could have prices significantly lower than rex and Qantas (cheapest fare on that route is generally $169) and make a profit. Would definitely be better than QF and Rex's old turboprops

Hard to see them filling 737 with 100 plus people to make a profit.

Especially on an older aircraft.

 

[Lucass]

The -700s are not VARA they are VA.

I would assume VARA will be merged into VA over time as it’s been reported the fleet will be down to only E190s by 2027.

It would probably be cheaper to use Air North E190s on those regional like routes, compared to the E2s which cost a bomb.

Do you know why the E2's are so expensive?