ThePaperBoy
In one post you're saying:
However, if such a thought was serious I don't believe such a strategy would work.
Then two posts later you're basically saying how you think it would work:
Operating costs would be similar, but establishing a new business unit would allow a slimmer organisational structure in comparison to the original group. Staffing costs could be lower as employment packages would be less than the existing VA packages. 'New' airline, 'new' EBA for the pilots. Hopefully they'd set up the new business properly and not use smoke and mirrors like QF/JQ do.
Offer absolutely no frills, therefore lowering costs yet again. Fly only one type again (say, the 737-NG) in the new LCC, therefore maintenance, training etc costs would be reduced. Overall, Virgin Australia does not have the lowest cost base, hence their move away from the middle ground and towards a differentiation strategy
You also said,
Hopefully they'd set up the new business properly
and in the same post
I hope they don't go down this path
. So, do you hope they set up one properly? Or hope they don't go down that path?
These posts just seem a little irrational, all over the place and just a rehash of all the information that is posted all over these forums every day with not much more information or substance. You even reposted on your own thread when no one initially replied. Maybe there was a reason for that?