Virgin Blue lands the AFL contract

[Mr. Hat]

Proving me wrong in a previous post in another thread. VB lands the lucrative AFL contract that Qantas held. Looks like John Borghetti's plan to move VB to the next level just took another critical step.

Reported in "The Australian" by Damon Kitney:



Virgin Blue steals AFL official airline contract from Qantas | The Australian (http://www.theaustralian.com.au/business/virgin-blue-steals-afl-official-airline-contract-from-qantas/story-e6frg8zx-1225955659609)

EXCLUSIVE: Damon Kitney From: The Australian November 18, 2010 2:27PM

VIRGIN Blue will become official airline of the Australian Football League after stealing the $8 million-a-year contract from arch rival Qantas.

Qantas had been keen to extend its association with the AFL, which started in 2002 after the collapse of Ansett.

But Virgin is believed to have bid aggressively for the contract, which involves sponsorship and extensive travel deals.

The official airline provides the AFL with thousands of heavily discounted seats a year for football clubs and AFL officials.

The deal, to come into effect from January 1 next year, will be announced this afternoon.

Hundreds of AFL figures and supporters meet on the Gold Coast today for the AFL Industry Conference and tonight's draft.

More to come..

This has to one of the biggest marketing wins in VB history.

[astroboy55]

The AFL wanted exclusivity.......i guess the rugby and soccer and rugby league contracts are worth too much to lose.

Maybe flight ops will be asked to save 16 million now instead of 8!!

[Icarus2001]

move VB to the next level just took another critical step.

Now that IS funny. AFL players, next level... in which direction? Do they have more expensive thongs?

[Jabiman]

next level... in which direction
VB is the second largest carrier in the market and they just took another major step in closing the gap.

[esreverlluf]

That's great, but who in the world (outside of Victoria) gives a flying %^ck about AFL? Stupid game confined to a small backwater of the world for good reason.

[Turncoat]

AFL is the main football code in VIC, SA, WA and TAS. Also popular in NT and now has two teams each in NSW (to be included by 2012) and QLD, although these latter two states the main code being Rugby. But, outside NSW and QLD the only state hosting an NRL side is one in VIC. In addition, one is in ACT. So, esreverluf I don't think VIC is the only state to give a flying %^ck about AFL.

[Qantas 787]

Demetriou's demand of exclusivity was just stupid - the Wallabies and Socceroos are worth a lot more to Qantas, in particular to overseas markets. So I guess Russell Crowe will need to get a new sponsor now fo Souths?

[Virgin Musthave]

Another croc from Ergonomic Central.
Once again the goons spend money they dont have while staff get rogered. The question is 'will they get the players to their destination on time' ?? I doubt it. Crap OTP,crap service, crap flair, busted planes (or dented ones) and a bunch of nuffy's prancing around like a bunch of queens on steroids.
One word - LAME.

[WannaBeBiggles]

That's great news! Glad I managed to sell my QAN shares a day prior to the A380 incident and held on to my VBA shares :ok:

[Mr.Buzzy]

One thing to win. Another to keep.
Hope the changes are big and come soon!

Bbbbbbbbzzzzzzzzzzz

[virginexcess]

The point is, it is a contract QF used to have that they don't have any more.

JB openly stated that he was going to take business off QF, and he is doing it.

First he took some of the people he wanted, he then stole the Etihad deal from under their noses, he has now secured a lucrative sponsorship/contract from them.

In my view he seems to be kicking a few goals. Not sure if this mean more profit, but without the sponsorship deals and the contracts, you have nothing.

Also, the AFL is probably a good one to start with. Not too corporate (i.e footballers are basically bogans) so they will put up with the VB Cr@p. All the while JB will be working to improve the product so that, hopefully, one day it will be recogniseable as a genuine business class product. Once (if) that is achieved he can start hunting the big corporate spenders.

[ROH111]

Virgin will cancel flights and players wont be getting to destinations on time. It's what Virgin do and when it happens once, twice three times the AFL will come crawling back to Qantas.

Virgin are incapable of operating a respectable RPT service. It's more like a CPT.... C for casual...

Virgins OTP is p*s$ poor for Australia's second largest carrier.

PLUS... I would fancy that their 'guests', as Virgin refer to them as, would have a bucket load of difficulty in fitting into a small cramped tiny ejit flying across Oz... Even if the A330 is in service by then, not every team plays in Perth every week, and even so, even if it is on the 737, the leg room just isn't there for players like Jack Watts, Nick Naitanui. The talls will suffer and the game revolves around them.

Good luck Virgin.

[Icarus2001]

Yes there is some kudos in this for VB

All income is good to have but is $8 million significant when their revenue last financial year was $2,907 million?

.0027% of revenue :D

They stole it from QF. Now can they keep it?

[F111]

ROH111,

Ejet seats are wider than the B737 and A320. Seat pitch is also greater and windows are larger. 99% of pax who travel on it prefer it over the 737.

[biton]

Got to love the qantas guys who jump on here like a bunch of women trying to compensate for the fact that their beloved "icon" is rapidly being flushed down the toilet. You just worry about your own problems ladies, like the PR disaster that is QANTAS!

[Normasars]

Hey hey Buzzy,

Those Hawthorn footy shorts and bandannas are gunna look great in those red jets. Maybe a few coolie loaches and red rams as well.:D

Cheers mate

Galley Hag,

Dunno what flight you have been on seeing AFL players in Business Class, but I can assure you they DO NOT travel in J on the PH flights. All economy my friend like the rest of the bogan supporters.:ok:

[GalleyHag]

I have no idea where you work but as cabin crew I can assure you high profile players (where seats are available) ALWAYS fly J Class along with the management of the teams just like the NRL. As I always work J Class I think I would know which sporting team flys in which part of the aircraft!

[Normasars]

entered in error, apologies

[Skynews]

So what does it really mean?

A few dopy blokes who kick some leather around a paddock and then get druunk abuse the general public travel on airline B. To me, as a passenger I'm supposed to be excited and also buy a ticket on airline B?

Haven't had the displeasure as yet, but if I found myself having to sit next to one of these teams of morons, I think it may be the last flight I do with airline B.

I did have the pleasure of traveling back from J burg, a few years ago with the Aus cricket team back when they could play cricket, and they were nice blokes.

[3 Holer]

"IF" Qantas really wanted the AFL contract they would have got the contract, clearly it wasnt an issue and Virgin can have the scraps.

Yep, those grapes are definitely sour Hashy ! Pass me the watermelon please.;)

[virginexcess]

A few dopy blokes who kick some leather around a paddock and then get druunk abuse the general public travel on airline B. To me, as a passenger I'm supposed to be excited and also buy a ticket on airline B?


It's about the marketing. AFL is the most watched sport in the country. Getting your brand linked to that, in a country where the average IQ is about 70, and sport is where the majority of punters spend their viewing time, it is an absolute coup.

It is irrelevant who plays it, where they sit, or whether you even like football. It's where the TV exposure is. Why do you think Emirates sponsor Collingwood? Because it is the biggest footy club in the country.

"IF" Qantas really wanted the AFL contract they would have got the contract, clearly it wasnt an issue and Virgin can have the scraps

What a load of ****e. Are you implying that QF has first right of refusal on every sponsorship opportunity in the country? If so you are delusional.

Could it possibly be (as many QF employees are pointing out) that the QF brand has taken such a hammering lately, that it is no longer first choice for everyone?

[chickoroll]

Does this mean VB will be needing more pilots??

[Red Jet]

As official airline of the AFL, the Virgin Blue Group will carry the 17 (soon to be 18) AFL teams, including the usualtravelling party of 60 players, staff and officials, across Australia.
Hmm, maybe this provide impetus to keep the E170's as flying footy-buses??

[virginexcess]

How exactly is $8m small bikkies.

In a business where enormous amounts of money is spent trying to induce one punter to part with $129 (or less) to fly from A to B, locking multiple parties of 60 seats plus per week for 6 months, plus a fair amount of out of season travelling, would seem to be a big deal in my view. But then again, I'm only a driver, not much clue on the revenue side.

[blow.n.gasket]

Is this another nail in Qantas' coffin?
I think the Qantas Board kicked an own goal when they promoted the leprechaun with billybob teeth over JB.
Qantas' loss, VB's gain it appears!

[B772]

It appears QF would not agree to the conditions imposed by the AFL and did not offer their services leaving VB as the sole contender.

[piston broke again]

ROH111, I believe VB had the best OTP in latest results...

[Skynews]

Im not convinced this marketing business is all it's made up to be.
Where is the proof that because Jester sponsor Sunrise or Virgin sponsor today, as examples, that more of the viewers of those stations travel with the respective airline?

I tend to watch sunrise, if anything, in the mornings and I can assure you it doesn't make me feel any better about Jester.

I make my decision based on price and schedule, and all things being equal I would chose QF simply as I may get an upgrade, drink a reasonable red and will get some thing to eat and a water without the extra cost (and sometimes swallow it) and the movie helps on a longervflight as well.

I don't chose simply the cheapest, that would have me on Jester most times, I consider price versus all the other issues.

Primarily, I reckon it's a lot of Bollocks made up by marketing companies and the sports organizations, it may make a small difference.

[harrowing]

Icarus2001,
I think you meant .0027 of the total or 0.27% not .0027%.
What is a factor of 100 amongst friends?
It may be the beginning of a big slide downhill.
My 2% of a $'s worth.
Cheers

[psycho joe]

Im not convinced this marketing business is all it's made up to be.
Where is the proof that because Jester sponsor Sunrise or Virgin sponsor today, as examples, that more of the viewers of those stations travel with the respective airline?

I tend to watch sunrise, if anything, in the mornings and I can assure you it doesn't make me feel any better about Jester.


Are you kidding? Everything about this show, from multiple set changes, to the not so subtle background product placement, to the age and personalities (if an times a bit 'put on') of the presenters themselves is carefully designed to elicit an emotional response from the viewer. The average viewer returns to the show because it makes them feel comfortable, they feel an affinity towards the presenters who appear to be warm open & honest, with just the right mix of old fashioned moral outrage. This familiarity feels like a friendship to the viewer so they stay loyal to the brand 'Mel & Kochie'.

Next time you watch, try timing the amount of Jetstar references within a half hour; you may be surprised. Whether the topic is a 'skycam', a destination, the weather etc etc the viewer is bombarded by not only by references to Jetstar but the term 'our friends at jetstar'. Thus Jetstar ceases to be just another cheap a:mad:se company. In the mind of the viewer Jetstar are now the 'friend' of a friend who will 'look after you'. :ok:

Credit where it's due. Though not a new concept, this is very effective marketing.

While we're on the topic full credit to Mark Beretta too, Whom I'm sure frequents pprune, and is one of the few journos to have a clue about aviation.

[virginexcess]

Im not convinced this marketing business is all it's made up to be.

Thank :mad: you're not running the company then:eek:

[Fonz121]

It's where the TV exposure is.

The NRL actually had a bigger tv audience the last season (or was it the last two? Can't remember now). The NRL also has a NZ audience so I disagree with the AFL being the best sport to sponsor in terms of exposure.

[Skynews]

Pyscho,

I am aware of how much jester is referenced and that's my point. It doesn't sell as far as I am concerned. Maybe others pay attention to that sort of advertising, I don't

I like sunrise, but they can waffle on about jester or any other company they like, it wouldn't convince me to buy that product. I shop around and look for a deal that suits me.

I can't think of a product I do buy due to advertising alone. Whilst advertising might provoke an interest in a product, it doesn't sell that brand.
If I see a great new TV with 3D I wouldn't just go and buy that brand of TV, I would shop around. If people are traveling with Jester, Virgin or QF simply because of a particular advertisement, then how smart are they?

[Fonz121]

Not too smart if they're watching Sunrise :}

[Skynews]

Hahaha and that comes from a "happy days". Fan.:8

You are joking of course!

[psycho joe]

It's about brand awareness and emotional response.


You keep returning exclusively to Sunrise as a viewer. You have an emotional response to Jetsar 'Jester' (emotional response doesn't need to be positive per se if the brand is perceived to have a 'better' product). You are aware of the product being advertised and you've invested time to check the value of their flights. Yet you don't rule out flying on jetstar; You'd just prefer the other QANTAS company brand (interesting use of future tense. Do you feel inferior for having flown on Jetstar instead of QANTAS in the past?).

Although you aren't affected by advertising, you've invested both emotion and time and been made brand aware.

If people are traveling with Jester, Virgin or QF simply because of a particular advertisement, then how smart are they?

Smart enough to believe that they aren't being emotionally manipulated. :E

[Skynews]

What percentage of the population would Not be aware of the major brands, be they aviation, cars, electrical equipment?

I don't rule out flying with jester, no. I don't rule flying with any company. My decision will be made on price, and schedule primarily. No amount of seeing Virgin during a ping pong game Jester during sunrise will affect the wAy I go about deciding. I don't buy gillette after watching golf either.

[psycho joe]

My decision will be made on price, and schedule primarily. No amount of seeing Virgin during a ping pong game Jester during sunrise will affect the wAy I go about deciding. I don't buy gillette after watching golf either.

That's what the advertising agencies want you to believe. The very fact that you associate a product with an event means that you have been influenced. The seed is sown.

[Skynews]

That may well be, but it doesn't change my spending habits, they were set in concrete well before Jester became a Sunrise sponsor or Tiger became famous.
So I still can't see the value in it. I suggest just about every Australian has heard of Virgin, a game of football won't change much.
I remember when 3 sponsored cricket, I had no idea what or who 3 were. I asked around and worked it out. If the aim was for me know who 3 are, yes it worked. Have I ever taken the next step and sought more detail on their product. Have you, I bet you have a phone and you probably have watched cricket?
None of this marketing has changed the way I do business.
Say I want to buy a car, I will go and visit all the car yards and determine first hand whether they have a product that fits my needs. If so it goes on my list and I score it. At the end of the day I decide on my investigation in to what's available, not on any glossy adds in the local rag, nor TV advertising. I just went through exactly this process.

I used to get a warm fuzzy feeling when the Qantas " I still call Australia Home" add. I like it. I don't travel any more or any less because of it. I travel due price and schedule. So if they want to spend 8 million on flash adds or onsor ship, good luck to them, it won't change my habits.
Maybe, I am not a normal consumer and most see it different, I get that.

[SilverSleuth]

Skynews your responses and views show the very reasons why companies have Ads and sponsorships. You quote all these examples of what doesn't influence you but alas have quoted, 3 and cricket, qantas and singing......

Any ad exec reading this will probably be calling you up for market research Monday morning as an example of subliminal messaging and branding doing it's job. But we know, it's doesn't influence you :rolleyes:

[Skynews]

Well explain how they get value for money, I haven't paid for a Qantas flight ( used FF twice) for several years, I like their adds, I have travelled, Bangkok Airways, Silk Air,Cebu Pacific, jester, and air asia equally (approximately). For the record I don't like jester and only use them when there is no choice. No advertising can change that. My razor isn't gillette and I have a telstra mobile due to coverage and internet speed. I have had four different car brands over the last 6 years. Even the 3 TVs in the house are different brands. One from Harvey Normal, one from JB Hi Fi and the third is really old, can't remember. Tell me how's the advertising affecting my spending habits.

I like coke adds and the old life saver adds, don't drink coke.

[Cactusjack]

One from Harvey Normal, one from JB Hi Fi and the third is really old, can't remember

Oh no, please don't mention Harvey Norman, now I do feel sick. And as for your third T.V perhaps it was a Dick Smith special ???

[Skynews]

Afraid not.

[Jabiman]

Well explain how they get value for money
You have admitted that certain advertisements are catchy and memorable.
You are a statistical sample of one so to say that the advertisements have no effect is mathematically meaningless.
If you were part of a group of 100 people all of whom remembered the ad, then the other 99 MAY have been influenced by it.
You can be sure that the bean counters in advertising have done their homework and know exactly how effective their marketing is.

[Mr. Hat]

Its always better to stick with facts no matter which colours you go for.

Happy to call a spade a spade. In this instance the spade has an improvement for VB in Oct. No doubt QF will come up trumps Nov. One thing I will predict though J* in Dec/Jan will be a shocker!



MICEBTN - Virgin Blue most reliable in October (http://www.impactpub.com.au/micebtn/index.php?option=com_content&task=view&id=8152&Itemid=50)
Friday, 19 November 2010
For October 2010, on-time performance over all Australian routes operated by participating airlines (Jetstar, Qantas, QantasLink, Regional Express, Skywest Airlines, Tiger Airways and Virgin Blue) averaged 81.2 per cent for on time departures, and 79.7 per cent for on time arrivals.
Cancellations represented 0.8 per cent of all scheduled flights. The equivalent figures for October 2009 were 84.6 per cent for departures, 83.8 per cent for arrivals and 0.9 per cent for cancellations.

Of the major domestic airlines, Virgin Blue achieved the highest level of on-time departures at 85.8 per cent, followed by Qantas at 80.9 per cent, Jetstar at 75.6 per cent and Tiger Airways at 64.9 per cent. The regional airlines were led by Skywest at 89.8 per cent, followed by Regional Express at 87.8 per cent and QantasLink at 76.4 per cent.

Virgin Blue also achieved the highest on-time arrivals figure among the major domestic airlines at 84.7 per cent, followed by Qantas at 81.4 per cent, Jetstar at 75.7 per cent and Tiger Airways at 66.6 per cent. Skywest was the best-performing regional airline for on-time arrivals at 89.5 per cent, followed by Regional Express at 82.7 per cent and QantasLink at 72.6 per cent.

Jetstar had the highest percentage of cancellations for October 2010 at 1.5 per cent, while Regional Express had the lowest percentage of cancellations at 0.04 per cent.

Of the 55 routes which met the criteria for on-time performance reporting, the Canberra-Adelaide route had the highest percentage of on-time departures (96.4 per cent) and the highest percentage of on-time arrivals (95.2 per cent). The Sunshine Coast-Melbourne route had the lowest percentage of on-time departures (58.0 per cent) and the Townsville-Sydney route had the lowest percentage of on-time arrivals (60.4 per cent).

Cancellations were highest on the Sunshine Coast-Sydney route at 3.4 per cent, followed by Gold Coast-Sydney at 3.3 per cent, Gold Coast-Newcastle at 2.6 per cent, Sydney-Melbourne at 2.5 per cent and Melbourne-Sydney at 2.3 per cent.

Ayers Rock Airport recorded the highest percentage of on-time departures (90.6 per cent) and the highest percentage of on-time arrivals (also 90.6 per cent). Sunshine Coast Airport recorded the lowest percentage of on-time departures (67.0 per cent) and Coffs Harbour Airport recorded the lowest percentage of on-time arrivals (66.5 per cent).
The figures only refer to reported routes and do not cover all flights at these airports.

As for AFL, Personally I don't follow it but I think its revenue and advertising do that can't be a bad thing. I think VB are light years away from QF in their product personally. Time will tell maybe JB will step up shortly.

[tiger19]

According to Jeff Kennett yesterday, the reason Virgin Blue got the gig was that the AFL gave Qantas an ultimatum, dump the Socceroos and Wallabies or we will move to another airline. If DJ weren't interested, there was always Tiger or even Rex!!!

Kennett is right, the AFL must temper its arrogance The Roar - Your Sports Opinion (http://www.theroar.com.au/2010/12/02/kennett-is-right-the-afl-must-temper-its-arrogance/)

According to the Herald Sun, Mr Demetriou's chairman's lounge privileges ended at close of business December 1. Blue room here you come Mr D.....