Virgin Australia - Phoenix Rising from the Ashes?
it’s been a couple of years since a thread regarding Virgin Australia was created so I hope this gets the ball rolling.
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With the dust settling from the Virgin Australia administration there seems to be new rumours on the ramp regarding the future of VA and VARA.
Latest news suggests Bain capital are investing in Virgins future for the long term despite reports they wanted to float the company next year (2023). With major debt ties finally cut it seems the airline has no where to go than up.
Despite their loss of circa $76.8mil (considerably less than previous years under previous management) in fiscal year 2021, and Covid finally being over, will we see Virgin make a push for the skies or proceed with caution with Bain heaving at the reigns?
I am no expert but I would suggest the best way forward for Virgin would be to consolidate its domestic operation around Australia, stay competitive with Bonza and Qantas and restart international operations ASAP. With Qantas operating almost all of international flights out of Australia under the careful watch of the ACCC it seems ridiculous that none of the 787’s that Virgin hinted at buying years ago are even on the cards yet. Another opportunity wasted.
Are the 25 737 MAX’s arriving in 2023 replacing the dinosaur 737’s hobbling around their network or will they be used to supplement the short haul international network out of the east coast and potentially create new opportunities out of Perth?
The newest rumours on the block suggest that VA offshoot VARA will obtain Boeing 737-700 jets. Rumours suggest that VA have purchased 10 ex KLM 700 series and have them operate on the west coast. With an ever ageing Fokker 100 fleet surely these jets are intended as a replacement? Why though would VA commit to these aircraft rather than investing in their growing A320 fleet and run A319’s in the Pilbara? Common Airbus fleet type would streamline maintenance, crewing and general ops?
From a commercial standpoint, one would assume the 737-700 would limit VARA’s ASK, compromise its ability to consolidate its position servicing the WA market and more importantly affect its ability to compete against an ever expanding Network fleet? Or are these aircraft simply replacement frames for the F100’s servicing the FIFO market? From what I’ve been told, the F100 runs rings around the 737 in regards to its performance out of high elevation high temperature airports - does the 737 even make sense in the summer? Jeez I hope they got the numbers right there if it’s true.
The purchase of the 737-700’s is also a complicated move in regards to the AOC’s. I can only assume that VARA still have the A320, F100, F70 and ATR-72 on their AOC. It seems silly to add another aircraft on the list when VA already have the 737 on their AOC? Is this Bains subtle way of ditching VARA and absorbing all operations under the VA AOC or rather a strategic move to have VARA operate 737 routes for much less in WA just like network is doing for Qantas?
I miss the presence that Virgin once had in Australian aviation. I miss seeing their 330’s running East-West and tripplers running to LAX. I hope to see this amazing airline achieve huge success in the future because we all know at times they offer a damn lot more than other airlines do in this country.