DJ Axes SYDASP

[Wonderworld]

ABC News reporting DJ have decided to call it quits on SYDASP and have some ADLASP flights instead. They report tourism operators are "gob smacked"

[topend3]

Central Australian tourism operators say they are "totally gobsmacked" by Virgin Blue's decision to axe its Alice Springs to Sydney flights.

The cut-price carrier will instead operate four return flights to Adelaide per week.

Virgin Blue's announcement is a major shock for central Australian tourism operators.

Only last month, airline representatives met with authorities and assured them it was committed to the Sydney service.

Although tourism officials lobbied for an Alice Springs to Adelaide service, they say it is a disaster that the Sydney route has been sacrificed.

Virgin Blue will begin its Alice Springs to Adelaide flights from October 31.

It is understood capacity on the Sydney route was at about 70 per cent, which is well below what the airline considers an acceptable level.

Virgin Blue's David Huttner says the route was not profitable.

"With increasing costs on things like airports and fuel and other types of charges, we couldn't keep sustaining those loses," he said.

"We've tried to rationalise the service, because we didn't want to pull out, and we didn't want to leave Alice Springs beholden to a monopoly situation again."

[m-dot]

Its a shame to see this happening.

Theres nothing worse than living in a place like Alice and having very limited options to get back to the big smoke.

Especially sorry for any of the ASP Pearl Av Boys who might have interviews in Sydney!! (Youd better stay out of Bo's and save your pennies!!)

[Dj Dave]

M-Dot,

Are you French ?

( I just like the snow like you. Come from La Plagne)

Dj Dave

[Buster Hyman]

Well, this is what DJ are about. If it's not making money, they ain't flyin' it! Where's the problem?:confused:

However, I recall that this used to be part of the Golden triangle SYD-ASP-CNS. A popular route for tourists, but obviously not any more!:confused:

[Pseudonymn]

Centralian Advocate - Friday, August 13, 2004

Virgin scraps Sydney flights
Discount carrier turns eyes south to Adelaide
by Gavin King

Virgin Blue has scrapped its Alice Springs to Sydney service and replaced it with four flights a week to Adelaide.
The Sydney service will end from November with the Adelaide route to begin on October 31.
Virgin Blue head of strategy and communications David Huttner yesterday said the Sydney route was losing a significant amount of money.
Mr Huttner said: "To run the aircraft for three and a half hours with all of the increased fuel and air services costs meant that the low fare formula just wasn't cutting it.
"We looked at a number of options for the Sydney route but Adelaide offers a lot more flexibility.
Mr Huttner said: "It was something that a lot of people asked about when I was in Alice a few weeks ago."
Mr Huttner warned last month that Virgin Blue would scale back its Sydney to Alice route if passenger loads did not increase.
But the move to cancel the Sydney route has shocked the Central Australian Tourism Industry Association.
General manager Craig Catchlove said the airline ruled out removing the service in a meeting in Alice Springs last month.
Mr Catchlove said: "Less than three weeks ago we were told by Virgin Blue that they were not considering pulling out of the route.
"We were told the worst case scenario was a change to services in the off-peak season.
"This announcement has come totally out of the blue."
Mr Catchlove said the Adelaide route was welcomed and passengers who would normally fly direct from Sydney would now be diverted through Adelaide.
Passengers booked on Sydney flights from November will be offered alternative flights or a full refund.
Virgin will offer discounted Adelaide fares during November to celebrate the new route.

-----------------------------------------------------------------------------------

:yuk:

It shall be interesting to see the letters column on Tuesday. The residents weren't happy when this first came up a few weeks back...



edited 'cos my fingers were being dyslexic. D'oh!

[GT-R]

Stupid virgins.

[Don Esson]

Have said it before and will say it again: Virgin are cherry-pickers and are after short term profits. This latest move is surely proof?

In order to make money it is generally necessary to invest money. This sometimes involves taking a loss along the way. Quite clearly, Virgin are not prepared to make such an investment, rather just rip money out where they can. If they can't, they do what the PM says and simply "cut and run". What a mob of losers? Virgin

[Spotlight]

Don

Does anyone who's been around not know that the main game is to make big bucks and get out. Next up to the blocks has to be JR and Godfrey, as cynical a pair possible in Australian aviation.

Ergo Qantas and Jetstar rule the travel options. CHARMING!

[SkySista]

Let me get this straight....

SYD-ASP isn't making money...so they're pulling out.... yet DJ are axing ADL-PER in the afternoons and flying to Broome instead. This will make them money *how* exactly...?

Can see the same thing happening when they decide that the big bucks aren't in Broome, and thus shafting Broome as well as the folks in ASP.... :rolleyes:

Sky

[Don Esson]

Spotlight,

The main game is to not make big bucks and get out. The most sucessful and profitable Australian companies are those that 'did the hard yards', Qantas included. This is fact and is easily demonstrated. True, they have had their downs as well and their ups but they have been around a long time and have invesetd heavily in the society they serve.

The rabble from YBBN are now finding it much much tougher than they thought now that they are more accountable, being a listed company, and have much more competition. And to blame SARS for their recent four month poor performance is a joke, especially as foreign visitor numbers to Australia over the same period have increased year-on-year.

Instead of ripping the money out and then withdrawing when the heat is raised, they should be allowing markets to settle and develop them. If this means upping the price of a ticket, or taking a loss for a while, to cover the costs, then so be it. Seems to me that there may be more problems with this lot than maybe realised. :confused: :confused:

Are there any "deep throats" around???

[topend3]

Mr Huttner said: "To run the aircraft for three and a half hours with all of the increased fuel and air services costs meant that the low fare formula just wasn't cutting it.

sounds like a similar formula to bne-drw and syd-drw, but the freight makes up for it on these routes...

[bush mechanics]

As a centralian, Adelaide has always been the main buisness centre for Alice Springs,A fair lump of the population are from South Australia.
People here have been waiting a long time for such a service from VB.
The NT tourist commision should put a sock in it.They backed the Airport rework at ayers rock saying more people would come to Alice.Tourist now fly SYD-AYE-CNS.The only Alice they see is from flight level 330.
I must say about time.Its a real pain haveing to fly to ADL via SYD.Takes half a day to get to there.

[topend3]

SYD-ASP isn't making money...so they're pulling out.... yet DJ are axing ADL-PER in the afternoons and flying to Broome instead. This will make them money *how* exactly...?

no sky sista, the aircraft doing the bme run three days a week instead of the PER-ADL service.

[Pseudonymn]

As a centralian, Adelaide has always been the main buisness centre for Alice Springs,A fair lump of the population are from South Australia.
People here have been waiting a long time for such a service from VB.
The NT tourist commision should put a sock in it.They backed the Airport rework at ayers rock saying more people would come to Alice.Tourist now fly SYD-AYE-CNS.The only Alice they see is from flight level 330.
I must say about time.Its a real pain haveing to fly to ADL via SYD.Takes half a day to get to there.

A lot of the population here is also from the East Coast, myself and your partner included Bush Mechanics . Where are the majority of the tourists coming from?
The East Coast! Or, at least through an East Coast Intl airport.
Where will the East Coast locals be flying to over the holiday period? Most likely back to the East Coast to visit family.

Yes, the locals have also been asking for an ADL service, but not at the expense of the SYD flights.

I am also led to believe that Virgin are taking out the existing ASP- SYD Wednesday and Sunday flights, as of a few weeks time before they axe the route altogether.

[SkySista]

no sky sista, the aircraft doing the bme run three days a week instead of the PER-ADL service.

Oops yes, you are right, but still, you'd think that flights to ADL would be busier than to Broome, which yes, is busy in the tourist season, but...

Also, it's kind of funny that they'd pull out of doing ASP-SYD and start PER-BME, when you'd think that Sydney being a big arrival point for foreign travellers, and the Alice being a 'traditional' touristy spot, would still be more profitable than doing PER-BME three times a week...

Then again, I'm only SLF, what would I know about it? ;)

Sky

(have just noticed Pseudonymn has said pretty much same re: tourist thru SYD...sorry)

[126.7]

If you are a bread baker and the price of flour rises whilst business takes a fall, do you bake less loaves, keep the shelf full in hope of better days or not bake bread anymore as you can make money elsewhere?

My opinion is keep the shelves full if you believe in the product and make it work.

What is everyone elses opinion?:D

[Kaptin M]

Ummm, what money do you use to keep buying the flour, yeast & milk, and pay for the gas/electricity to run the ovens?

Too many cooks??

[Pseudonymn]

by Gavin King
Centralian Advocate
Friday, August 20

Alice Springs tour operators fear a massive drop in tourist numbers following Virgin Blue's decision to axe its Sydney to Alice route.

The discount airline announced last week it would replace the direct Sydney service with four flights a week to Adelaide.

A Virgin spokesman said the company had lost a significant amount of money on the route.

The Sydney service will end from November with the Adelaide route to begin on October 31.

Hoteliers Voyages, which runs Alice Springs and Kings Canyon Resorts, said the move was a serious blow to tourism in the region.

Sales and marketing general manage periodr Nicholas Baker said: "We are very disappointed with Virgins's decision to pull out of Alice.

"Local tourism operators have come through a very tough period and signs of a strong pick up were just being noticed when Virgin announced that they would stop a service that brought over 100 visitors to our region each day."

Spinifex Ballooning director Amber Packham said a considerable amount of customers used the direct Virgin service.

Ms Packham said: "It was a lot cheaper for people to jump on a Virgin flight and it will cut tourism numbers quite drastically.

"It makes it a lot more difficult for travellers who might have been on a budget."

Wildway Tours, which predominantly services the backpacker market, said Sydney travel agents were also concerned with the move.

Systems operations assistant Matthew Wait said: "For the backpacker market it's a huge blow, because if people had four or five days off in Sydney and wanted to explore Alice Springs and the red centre they would generally use Virgin.

"Before they would travel here by bus but when the cheaper flights came in they could be here in about three hours.

"We'll have to wait and see if people in Sydney use the Adelaide service to get here."

:* :* :*

[ACMS]

You blokes are amazing, why should any Private airline keep flying a route that does not turn a profit for them? what is in it for their shareholders if they continue?

Over the years I have seen Qantas drop lots of Domestic and International routes for this very reason.


Reality check.

[Pseudonymn]

I think you are missing the point here, ACMS.

Virgins loads are consistently in the 70-80% range or higher but they claim they are losing money and that Alice Springs is not supporting them. :confused:

Why not raise the fares an extra $20 to cover the increase in fuel, even 70 or 80% of your standard 150 or so available seats on the 737-800 would get an extra $2,600 in fare revenue per flight. Surely that would make a difference? Or are Virgin running a hidden agenda somewhere?

Why would you cut a flight that consistently carts 100 + people in and out of town each day without exploring other options to keep the route profitable? :ouch:


And no, I don't work for Virgin or Aerocare. :suspect:

[air-hag]

yeah so they're cherry-picking..... what else would you expect from an airline called Virgin??? :rolleyes:

This has already been discussed on the Bastards vs Boilers thread.



As for cancelling a service to the Bogun and Ugg-Boot Capital of Australia, Adelaide.. do you really think anyone will care? Those rednecks prefer the train anyway so they can shoot at signs from the windows.

As for the AS tourists, I could never understand how people would recommend the place when their first sight of AS is the plagon houses (and inhabitants) under the Todd River Bridge.

:ok:

[topend3]

As for cancelling a service to the Bogun and Ugg-Boot Capital of Australia, Adelaide.. do you really think anyone will care? Those rednecks prefer the train anyway so they can shoot at signs from the windows.

well air-hag you are really clued up with what's going on mate, they aren't cancelling the ADL service, they are INTRODUCING it to replace the SYD service...

[Natit]

Air-Hag.. you really are a bright spark :rolleyes:

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