|
Little Red
Reporting a load factor in the mid-30s = Ouch.
Virgin domestic flights a 'disaster' as passengers stick with no-frills rivals - News & Advice - Travel - The Independent |
But we all knew this would be the case...
SRB thought he could come sailing straight into an established section of the aviation market, wave the Virgin "magic wand", and have what ever he wanted. But, it does not, and did not, work like that. No doubt, shortly, he will make some statement, saying that BA and EZY have a monopoly on the market and it is unfair and he is being discriminated against, for, oh... I don't know, having facial hair or something, and want to see major changes in the market, all for the benefit of customers of course, not to line his pockets... |
I don't believe for a moment that Virgin are surprised by the loads, only an idiot would expect a route like MAN-LHR to be profitable in its own right.
The article even spells out why they are operating the route: "One man enjoying the acres of elbow room was Robert Meizel, an American businessman connecting to a New York flight". It's not about O&D traffic. :ugh: |
This letter appears in The Independent today:
Virgin’s Little Red is no failure Virgin is a challenger brand. Throughout the history of our different companies we have always been proud to challenge the status quo. This was true of Virgin Atlantic and our single plane 29 years ago, and it is true of our domestic service Little Red today. Your article “Virgin ‘losing millions’ after domestic flights venture fails to take off” (11 October) on the performance of Little Red speculates on loss figures which are hugely overstated. But more than that – the piece misses the point. Little Red is a British business giving a better deal to British passengers. On routes where previously customers in Aberdeen, Edinburgh and Manchester had a “choice” of one, there is now a strong alternative and we are shaking up a monopoly market. Little Red has brought down average fares on these routes, has grown the domestic travel market, and created jobs around the UK. Despite a difficult time for all in the British economy we have continued to grow and launched Little Red to provide choice for passengers domestically in the way we have on our long-haul flights. We are doing so with a full service, a great schedule and as your article points out, at exceptionally good value for money. Passengers have responded well and the feedback we’ve had is that people love flying Little Red. Bookings are growing steadily with passengers from around the globe connecting on to Little Red flights. Virgin Atlantic has been on an incredible journey over the last three decades. Little Red is just beginning its journey – we hope and believe that passengers will come on that journey with us and that they will enjoy the ride. Sir Richard Branson, Manor Royal West Sussex |
Virgin Atlantic has been on an incredible journey over the last three decades. Little Red is just beginning its journey – we hope and believe that passengers will come on that journey with us and that they will enjoy the ride. Sir Richard Branson, Manor Royal West Sussex BBC News - Branson defends residence on Necker Island Sir Richard Branson says he is not living on his holiday island of Necker for tax reasons but because of a love for the "beautiful" location. The Virgin Group founder wrote an entry on his blog explaining the reasoning behind the move seven years ago from the UK to the British Virgin Islands, |
Little Red
They need to get GLA-LHR in the mix, BA have no competition on this route.
|
.....indeed, and they must be doing well on it, as the 767's seem to be much in evidence
|
Little Red
Why was GLA not included from the outset?
If you're going to launch domestic flights GLA along with EDI seem the most obvious ones. I'm not sure what the terms of securing these slots were; did Virgin have to launch services to replace these old BMI routes or could they switch them to other routes (say new long haul routes) if these ones continue to perform badly? |
VS have to operate the remedy slots (ie those to EDI and ABZ) for 3 years. After that they can use them for any European route, or to Cairo or Riyadh. They cannot use them for other long haul routes.
These restrictions do not apply to the MAN slots, which already belonged to Virgin. GLA was not included in the BMI remedies as BMI had already withdrawn from that route, citing large losses. Given that VS's feed is likely to be worse than BMI's was (given its Star membership) it is difficult to see that VS would fare any better on GLA-LHR. |
Possibly, but at least if they had included GLA instead of MAN they would have had a clear proposition i.e. Scotland (ABZ, EDI and GLA) to LHR and of course VS already serve GLA/MCO in the summer. There would certainly be a lot more point to point pax from GLA than from MAN.
|
Mr Wombat
Yes, you are absolutely right that GLA-LHR makes much more sense as a point to point route than MAN. But the fact remains that when BMI withdrew from the route in 2011 they claimed that their losses on the route were running at £1m per month. It's difficult to see that VS would do any better. Domestic routes are difficult, especially with APD. And VS really only started Little Red to feed into their network ex-LHR - all this guff about offering an alternative to BA for p2p traffic is really just spin. |
I have been told that the Manchester route is the best performing of the routes
I cannot substantiate though |
Thread drift was introduced.
SWBKCB I see that SRB is now 63 years old, so if he wants to take early retirement he can. No, I have never worked for him or even met him. /Thread drift. |
GLA-LHR makes much more sense |
...he was talking about point to point, not connections.
|
Joe, same argument applies to EDI and TK etc
|
Little Red one stop via LHR or EK one stop via DXB? |
I have been told that the Manchester route is the best performing of the routes I cannot substantiate though I've spoken to some of the AerLingus pilots who have worked on the little red services, they are of the view that MAN is the poorest performer, stating that in terms of loads (I stress not in terms of yield/ revenue), EDI and ABZ doing far better than MAN. The service only ticks the box on price, I wasnt particularly impressed, they dont have in flight magazines, and the in flight service seemed minimal. Good luck to them, but I am only glad for Aer Lingus that they didnt win the bid for the slots. Virgin have a very significant backer now who will support them heavily.... they may need it on the domestic front... EI-BUD |
To be fair, EI-BUD, just how much in flight service do you need between Manchester and London? I've done the route a few times on BA who tried to throw a coffee and some biscuits at me, which I found a bit pointless; by the time I'd been served and the drink had cooled to a potable temperature, it was snatched off me in preparation for landing!
It would be interesting to know how much long haul revenue Little Red supports vs the inevitably huge losses it must be incurring. The Independent article just shows what a tit Simon Calder is. Everywhere he claims to be an Travel Expert, yet seemingly instinctively grabs the wrong end of the stick on anything aviation related. |
If Virgin are Little Red (Riding Hood), Delta are the Wolf. "My what pretty Heathrow slots you have my pretty...." * licks lips
Another LHR-ATL is going to be worth more to the JV than a solitary VS' LHR-PVG. Another LHR-DTW is potentially way more bang for your buck than VS' LHR-NRT, still a weakened market. |
| All times are GMT. The time now is 01:12. |
Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.