Virgin/Alliance

[160knots]

The latest talk around BNE is that the new investments in Virgin has prompted talk of an alliance or major stake in Alliance so that they could tie up WA and feed the FIFO pax in to the Virgin network.

Looks like QF is going to take a bath on all fronts. With a Virgin stake Alliance will be able to drown Network in any contract bid.

Interesting times ahead.

[BPA]

Can't see the point in taking a stake in Aliiance, as they will have Skywest to complete in the FIFO markets in both WA and QLD using the F100's and in the future most likely using EJets that they take from Virgin.

[Stiff Under Carriage]

I'd believe this. Seen F100 branded with Alliance all over it yet operating under a 'Velocity' call sign at YWLM last two days.

[coaldemon]

Why would they buy a second FIFO operator?

[Gate_15L]

I'd believe this. Seen F100 branded with Alliance all over it yet operating under a 'Velocity' call sign at YWLM last two days.

Before you get your knickers in a twist...

Virgin Fokkers will serve Newcastle-Brisbane route | Plane Talking (http://blogs.crikey.com.au/planetalking/2012/09/28/virgin-fokkers-will-serve-newcastle-brisbane-route/)

Virgin probably will keep using Alliance on ad-hoc and contract basis to keep up with demand...

[Stiff Under Carriage]

Thanks Gate_15L. That'd explain a lot. :E

[mach.865]

Alliance Stock put on hold. Latest report on their website 13.6 million shares sold at $1.85 with the intention to raise $25 million and purchase 5 jets. Look at their financial report, it's a profitable company with the airline winning more contracts.

Their business model just on pilot salaries alone is lower than Sky West's, compare their Enterprise Agreements. They are also winning contracts from Sky West. This company is a force to be reckoned with and it's only a matter of time one of the big operators will see the benefits of taking them over.

Good to see them doing well. Keep going Scott.

[flyingfox]

Another company keeping salaries low. Is that a cause for celebration?

[Worrals in the wilds]

The latest talk around BNE is that the new investments in Virgin has prompted talk of an alliance or major stake in Alliance so that they could tie up WA and feed the FIFO pax in to the Virgin network.Is Alliance interested though? :hmm:
Another company keeping salaries low. Is that a cause for celebration? Sure, but they seem to be a pretty satisfied bunch. You don't hear much whinging on here or 'round the campfire. Maybe salary isn't all that's important to employees, if they work for a good company that respects them. Maybe their workers are happy working for a company that values their skills and input and are happy to take a lower pay as a result. Maybe it's not always about the mighty dollar.
Discuss, AJ and LC. :E Why is it that the most highly paid aviation workers (Qantas) are also the most dissatisfied? Maybe they're missing that special little something, i.e. value, self worth, respect, gratitude? :hmm:

Me, whatever the salary was I'd far rather work for Alliance than Qantas. Just from what I hear 'round the campfire. :suspect:

[neville_nobody]

Maybe salary isn't all that's important to employees, if they work for a good company that respects them. Maybe their workers are happy working for a company that values their skills and input and are happy to take a lower pay as a result. Maybe it's not always about the mighty dollar.

Until they start doing airline numbers. Start doing 800+ hours a year and see how much a low ball salary means to them. Low ball salaries are fine if its a 9-5 kinda job with most weekends off. When it goes 24/7/365 money starts becoming an issue.

[grrowler]

Not a fan of the low salaries, but I believe their overtime threshold is fairly low, so 800 hours a year would top the coffers with overtime.

[travelator]

Airline numbers? From what I hear, those guys are much closer to 1000 hrs pa. The ot threshold is low which makes up for the low base ( in boom times anyway)

[hiwaytohell]

Why would they buy a second FIFO operator?

$19M profit!

Last I saw Alliance had a PE ratio of about 10... it appears Virgin valued Skywest at 16... so by their rationale Alliance would be good value.

[GAFA]

This week JB and SD made it clear to the Virgin Pilots that the Wet Lease arrangement with Alliance will end in FEB as planned and they have no further plans to use Alliance.

[moa999]

Why is it that the most highly paid aviation workers (Qantas) are also the most dissatisfied? Maybe they're missing that special little something, i.e. value, self worth, respect, gratitude?

Great point.
Instead of doing absolutely everything to keep the profitability of the company up (and allow the high wages to continue) it seems many Qantas employees attack it at every opportunity.

But it seems the only gratitude that people want is higher wages, something that happens much more easily at the lowest paying employer rather than the highest, instead of looking at their relative lot.

Quite bizarre really.

[Tidbinbilla]

My industry contacts confirm what GAFA has written.

So, we can call this myth busted :ok: