VA Results/Announcement today

[Saab34]

Guys
Virgin updating market this morning, press conference 10am
-FY15 results
-International Update/Changes
-TigerAir increase in capacity/fleet, international route announcement
-Update on product upgrades.

Ill take a punt and say Tiger to Bali and Auckland with another 5 A320s

 

[smatho10]

Virgin Australia to cede Bali, Thailand routes to Tigerair - Australian Business Traveller

Virgin Australia will defer some of its Bali leisure routes to low-cost arm Tigerair Australia in a bid to boost its bottom line, while axing services to Thailand altogether.

....although Velocity members will be able to redeem their points on Tigerair's new Denpasar flights, but will not be able to earn points on any Tigerair flights, nor redeem them on other Tigerair routes.

 

[Melburnian1]

Here is the release to the ASX:

http://www.asx.com.au/asxpdf/20150807/pdf/430c3sskcnwqy7.pdf

Along with DPS changes, VA is withdrawing from PER - HKT and there are some marginal increases in VA operated flights to New Zealand.

 

[samh004]

So VA is shrinking?

 

[Comoman]

Well if they think I'm flying Tiger to Denpasar from Perth they're mad. Just like I don't fly Jetstar either. I go to coughet quite a bit and SQ through Singapore is fine anyway.

Garuda will be laughing......

 

[moa999]

Looks like they have deferred 737NG deliveries over the next few years to convert to MAX orders.
Also suggested that 'efficiencies' will enable 2 aircraft to leave the fleet.

So certainly appear to be shrinking.

That said from 2018 they have a bunch of lower cost 737MAX coming on line -- QF has yet to commit (QF Group has a bunch of 320neo orders).

--

Query what AOC TigerAir Intl will be operating under.
The old Tiger Australia was 100% foreign owned, so couldn't operate internationally, and it was then bought by mostly foreign owned Virgin Australia.
My only thought is that it operates under VA Int but using a brand license or something.

 

[Cool Cat Phil]

As a VA shareholder, I would have to say that this is yet another disappointing result announced today.
On the bright side, I do think VA made the right decision by handing over some DPS routes over to LCC subsidiary Tigerair, this was the right move for the Company as this route is becoming saturated in cheap seats as of late.
Although I suspect more adjusting of VA's International routes is required before we see profitability.

 

[docjames]

So Tiger taking over Bali flights.

Interesting they also look like they'll need to take on the 737 as the A320 wont have the range for DPS flights.

Tigerair still needs regulatory approval to fly to Bali using three all-economy Boeing 737-800 aircraft. Up until now, the budget offshoot's fleet has comprised just Airbus A320 aircraft but needs the flying range of the 737 to fly routes such as Melbourne-Bali.

 

[Liroquai]

Tiger have already started selling seats to DPS. Most notably MEL-DPS return for $220.

 

[smit0847]

Tiger have already started selling seats to DPS. Most notably MEL-DPS return for $220.

JQ price match!!!

 

[eastwest101]

JQ price match!!!

I expect that is precisely why the guys at VA were keen to get out of DPS and hand as many DPS routes over to TT as possible. I would imagine that DPS is losing money for all concerned (JQ QZ XT GA and VA) now with general overcapacity, low tourism numbers ex-Australia with slow down in Australian tourism they'll be paying passengers to fly to DPS soon.

Interesting in hindsight that Jetstar was set up to essentially "kill off" Virgin Blue, which then evolved into Virgin Australia which now owns part of Tiger and which I guess now is designed to "kill off" Jetstar. I am guessing the people at VA don't want to see JQ get "too comfortable" in the DPS market.....

 

[samh004]

Interesting in hindsight that Jetstar was set up to essentially "kill off" Virgin Blue, which then evolved into Virgin Australia which now owns part of Tiger and which I guess now is designed to "kill off" Jetstar. I am guessing the people at VA don't want to see JQ get "too comfortable" in the DPS market.....

I thought they owned all of the Australian operations?

 

[moa999]

Interesting note on Plane Taking that the VA 737s are being reconfigured from 8J+168Y to 180Y -- ie just the addition of 4 seats - no extra rows.

However the first 5 rows will have extra pitch/ leg room... The old red seats from DJ all over again!

 

[moa999]

. I am guessing the people at VA don't want to see JQ get "too comfortable" in the DPS market.....

737 v 787 however

 

[Dr Ralph]

The Bali route was always too unprofitable for Virgin. Far too many bogans.

 

[Dr Ralph]

As a VA shareholder, I would have to say that this is yet another disappointing result announced today.

As a VA share holder, I gave up any thought of seeing a return on my money years ago.

 

[madrooster]

Interesting they also look like they'll need to take on the 737 as the A320 wont have the range for DPS flights.

The B738 and A320 both have quite similar maximum ranges?

 

[anat0l]

The Bali route was always too unprofitable for Virgin. Far too many bogans.

You have to keep in mind that quite some time ago, many of those bogans were cashed up to the wazoo. Yeah, if I were cashed up too maybe I could think of better ways to spend my money than go to Bali, but so there.

At least one carrier seems to be keeping afloat on DPS routes, so why couldn't its direct (not even) competitor?

As a VA share holder, I gave up any thought of seeing a return on my money years ago.

Well, I guess the only way is up. The profit trajectory is moving in the correct direction, even if it is in the wrong territory. Notwithstanding external pressures like fuel or weird disasters which have a global effect, you'd have to be rather surprised if VA didn't get back into black in the next half or full year.

Besides, there's enough external force out there that will make sure VA don't go into the sink hole. The main stakeholders of the airline - notwithstanding the perhaps dubious assessment thereof the Australian component - have way too much pride invested to see the airline fail. So your investment may not be performing but at least it is not going the way of the dodo!

 

[OzEire]

Even this week VA was pushing special fare flights to DPS, now the route is TT. Should we start the thread now? "I booked VA to DPS and got TT"

 

[Aussie_flyer]

I expect that is precisely why the guys at VA were keen to get out of DPS and hand as many DPS routes over to TT as possible. I would imagine that DPS is losing money for all concerned (JQ QZ XT GA and VA) now with general overcapacity, low tourism numbers ex-Australia with slow down in Australian tourism they'll be paying passengers to fly to DPS soon.

Interesting in hindsight that Jetstar was set up to essentially "kill off" Virgin Blue, which then evolved into Virgin Australia which now owns part of Tiger and which I guess now is designed to "kill off" Jetstar. I am guessing the people at VA don't want to see JQ get "too comfortable" in the DPS market.....

Latest stats show JQ filling 80 to 85% of all seats to Indonesia. I think they do quite well there with the 787 and their cost structure.