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?

 

[HS-TQE]

You need to settle down with the VA expansion stuff, I get you want it to be a full service airline that tries to be all things to everyone and serves almost everywhere at anytime. But the last time VA 1.0 tried to be "all things to everyone" under SQ and EY ownership under the leadership of John Borghetti and James Hogan, they lost a ton of money year in, year out and most of their divisions, including the Regional Domestic ATR flying was bleeding money across the board.

But as VA 2.0 said, they are a self described Value Carrier (a Hybrid Low Cost Carrier), not a full service carrier and are more disciplined under majority PE ownership.

As long as Bain are still majority owners, despite the ink only drying with QR formally taking up their 25% stake. Most would think that Bain and QR will continue to stay the course keeping CapEx spending disciplined until the first of the Bain IPOs are up and running in the short/medium term future.

 

[HS-TQE]

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.

There is also SkyTrans with their 138 seater ex-ITA A319s (they currently have 2 and will be increasing over time) available for both QF and VA for regional runs if they wish to utilise them once their ACMI/Wet-lease operations are up and running.

 

[markis10]

they lost a ton of money year in, year out and most of their divisions, including the Regional Domestic ATR flying was bleeding money across the board.

That’s because the got suckered into a deal with the ATRs that saw them paying high lease rates (more than a 737) from Skywest