Virgin flights under threat
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Virgin flights under threat
Centralian Advocate
24 Feb 2004
Gavin King
Virgin flights under threat
More ticket sales needed
Virgin Blue could cancel it's Alice Springs service if ticket sales do not increase, it was revealed yesterday.
Industry sources said that Virgin had been close to cancelling its off-peak services to Alice Springs because of low ticket sales.
It is understood a recent bail-out marketing campaign by the NT Government, NT Tourism Commission and Virgin Blue has kept the service alive - for the moment.
But a Virgin Blue spokeswoman confirmed that the airline was taking a "wait and see" approach to the future of its Alice Springs route.
She said: "It's safe to say that it's not one of our strongest performing routes in the low season time."
The spokeswoman said Virgin Blue's load factor - the number of passengers compared to the aircraft's capacity - on Alice Springs flights was averaging around 70 percent.
According to Virgin Blue's website they have maintained an average across all flights of around 80 percent.
The spokeswoman said: "There's no plans to pull out of Alice Springs providing we get ongoing support and our flights are well used.
"We certainly hope the people get behind and support us. We're taking a wait-and-see approach."
The spokeswoman said travellers should consider what prices were like before Virgin Blue.
She said: "People forget to look back at what it was like with only one airline.
"It's not because of the goodness of the competition's heart that prices are much more reasonable than what they used to be."
Bail Out
Virgin Blue and the NT Tourist Commission recently spent $150,000 each to advertise cheap flight packages in Sydney newspapers.
The campaign attracted almost 1000 extra visitors to Central Australia in the traditionally slow summer period.
The industry, including smaller operators, recorded a direct impact from the marketing boost.
One small operator reported a 400 percent increase in bookings during the period.
24 Feb 2004
Gavin King
Virgin flights under threat
More ticket sales needed
Virgin Blue could cancel it's Alice Springs service if ticket sales do not increase, it was revealed yesterday.
Industry sources said that Virgin had been close to cancelling its off-peak services to Alice Springs because of low ticket sales.
It is understood a recent bail-out marketing campaign by the NT Government, NT Tourism Commission and Virgin Blue has kept the service alive - for the moment.
But a Virgin Blue spokeswoman confirmed that the airline was taking a "wait and see" approach to the future of its Alice Springs route.
She said: "It's safe to say that it's not one of our strongest performing routes in the low season time."
The spokeswoman said Virgin Blue's load factor - the number of passengers compared to the aircraft's capacity - on Alice Springs flights was averaging around 70 percent.
According to Virgin Blue's website they have maintained an average across all flights of around 80 percent.
The spokeswoman said: "There's no plans to pull out of Alice Springs providing we get ongoing support and our flights are well used.
"We certainly hope the people get behind and support us. We're taking a wait-and-see approach."
The spokeswoman said travellers should consider what prices were like before Virgin Blue.
She said: "People forget to look back at what it was like with only one airline.
"It's not because of the goodness of the competition's heart that prices are much more reasonable than what they used to be."
Bail Out
Virgin Blue and the NT Tourist Commission recently spent $150,000 each to advertise cheap flight packages in Sydney newspapers.
The campaign attracted almost 1000 extra visitors to Central Australia in the traditionally slow summer period.
The industry, including smaller operators, recorded a direct impact from the marketing boost.
One small operator reported a 400 percent increase in bookings during the period.
Bottums Up
Hardly surprising that loads are down over the summer period. Temps of 40 degrees C or greater are not overly conducive to tourism. QF have accepted the seasonal nature of the loads into and out of AS for years, as did AN, TN, and other past operators.
Last edited by Capt Claret; 24th Feb 2004 at 20:52.
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This only just shows what a bunch of wingers Virgin are. Everybody else has been operating year in year out and soon as things go quiet Virgin want special help!! What a joke!!! Are they providing an air service or just want to ride on the back of the tourist season then leave as soons as it gets a bit tough! Unbelievable!!!
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Well I would be pretty happy with a load factor of 70% in the quiet time.
I am sure that this rises to the high nineties during the peak season. So why the problem? This would give them an average load factor of 80% year round.
That was quoted as the average for the fleet? Or are there other factors at play here? ie: unusually low yields?
Cheers, HH.
I am sure that this rises to the high nineties during the peak season. So why the problem? This would give them an average load factor of 80% year round.
That was quoted as the average for the fleet? Or are there other factors at play here? ie: unusually low yields?
Cheers, HH.
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Everybody else has been operating year in year out
Now the Red Rat has a REAL opposition, they have been forced to lower their prices. If VB isn't supported, they will pull out, simple as that. Then watch the QANTAS prices triple!!!!
Just ask the folks in Mt Isa.
Next Generation
You must be kidding if you honestly believe that. Competition is a two way street and if it was Qantas that was pulling off the route, don’t tell me Virgin wouldn’t put up the prices. Oh and don’t try that “If VB isn’t supported bla bla” BS 
. They are getting an average of 70% load factors on this route in the “off-season”. Maybe they should reassess their yield management, as they are obviously not charging enough for their fares to make an acceptable return on investment. This running to governments claiming unfair treatment or wanting more favorable treatment is wearing thin. Real competition is when there is a level playing field for all operators and the sooner VB learn this the better.
Now the Red Rat has a REAL opposition, they have been forced to lower their prices. If VB isn't supported, they will pull out, simple as that. Then watch the QANTAS prices triple!!!!
. They are getting an average of 70% load factors on this route in the “off-season”. Maybe they should reassess their yield management, as they are obviously not charging enough for their fares to make an acceptable return on investment. This running to governments claiming unfair treatment or wanting more favorable treatment is wearing thin. Real competition is when there is a level playing field for all operators and the sooner VB learn this the better.
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This running to governments claiming unfair treatment or wanting more favorable treatment is wearing thin. Real competition is when there is a level playing field for all operators and the sooner VB learn this the better.
You should know better than most that QANTAS don't care about fair prices.
QANTAS subsidiary Sunstate achieves 16% of their total income from this single route!
Don't bull**** that QANTAS are there for the people.
They were ripping people off in Mt Isa after the ANSETT collapse, and then they dropped their prices and increased capacity on this route when VB started flying there, and now they are ripping the public off again.
Competition is a two way street and if it was Qantas that was pulling off the route, don’t tell me Virgin wouldn’t put up the prices.
Whenever VB has started flying a route which wasn't already flown by QANTAS, their pricing remained in proportion to all their other fares. This is what they are all about. Increasing the market size by making it affordable for all Australians to travel.
NG
Bottums Up
NG stated:
I'd suggest that VB isn't there for the people either. It's there to make money for it's shareholders, by providing a service that people will pay for.
Just like Qantas.
Just like most airlines that aren't government owned.
Don't bull**** that QANTAS are there for the people
Just like Qantas.
Just like most airlines that aren't government owned.
Next Generation
That should be government tendered route, i.e. the cheapest tender. If VB want to bid for this tender let them but somehow I think they won’t because they don’t have the right equipment. If you have a problem with the fact that only Sunstate can operate this route, take it up with the Queensland Government, after all they’re in the business of helping out airlines, namely yours and in this case they make the rules.
How much does it cost to fly from Cairns to Horn Island on this GOVERNMENT protected route? About $600.
Next Generation
Really, you tell me sunshine. After all the government tender process is a confidential process, so you tell me because it would be interesting to know how you know.
Really, you tell me sunshine. After all the government tender process is a confidential process, so you tell me because it would be interesting to know how you know.
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I could tell you, but I won't. It would land me in hot water, but suffice to say that the lowest price did not win.
This however is getting off the topic. This is merely one example used to highlight the QANTAS rip-off mentality.
Poor old Geoff must be longing for the days when QANTAS prices went up on the same day, by the same amount, as ANSETT.
If QANTAS has any opportunity to inflate their prices they do.
VB on the other hand has proven that they will always offer the lowest price possible whilst remaining economically viable.
This however is getting off the topic. This is merely one example used to highlight the QANTAS rip-off mentality.
Poor old Geoff must be longing for the days when QANTAS prices went up on the same day, by the same amount, as ANSETT.
If QANTAS has any opportunity to inflate their prices they do.
VB on the other hand has proven that they will always offer the lowest price possible whilst remaining economically viable.
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NG - VB have an extremely sharp backroom number-crunching team who are as bottom line focussed as QF. They are obviously bloody good. They also have an excellent marketing team who try to convince everyone that they don't have an extremely sharp backroom number-crunching team who are as bottom line focussed as QF. They seem to have convinced you.
Your Horn Island comparison is not a fair one. The closed routes have regulated air fares so your issue is with the Qld Govt and not QF. The Qld Govt when awarding the contracts stated that the lowest tenders did not necessarily win. On that particular route there wasn't exactly a lot of competition - unless of course you are referring to a regional that had just collapsed for the second time.
Your Horn Island comparison is not a fair one. The closed routes have regulated air fares so your issue is with the Qld Govt and not QF. The Qld Govt when awarding the contracts stated that the lowest tenders did not necessarily win. On that particular route there wasn't exactly a lot of competition - unless of course you are referring to a regional that had just collapsed for the second time.
Last edited by bitter balance; 24th Feb 2004 at 23:09.
Next Generation
Please also could you tell us a route that DJ doesn’t have competition on, directly or indirectly? I can’t think of any off hand. Competition is what keeps the prices under control, not because DJ or QF are good guys. When DJ came into this market they were a privately owned company that may have been motivated partly to deliver cheaper airfares to the general public. Now they are a publicly listed company, different forces are now at work. In every public listed company, maximum return to shareholders is of paramount concern. This is accomplished in a two fold way. Firstly by controlling costs and secondly by increasing profit margins. As DJ have already taken care of the first it really only leaves them the second. If they or QF have an opportunity to increase fares, they will and if you are truly so delusional to believe that DJ wouldn’t, then you aren’t living on the same planet as the rest of us.
If QANTAS has any opportunity to inflate their prices they do. VB on the other hand has proven that they will always offer the lowest price possible whilst remaining economically viable.
I always roll my eyes when I hear DJ on the one hand raving on about "keeping the air fare", making flying more affordable for Australians, bringing true competition into the market, and THEN whinging at the first second of such competition and running off looking for government assistance, "ongoing support", etc.
Yes girls, it's called COMPETITION. Get out there and earn your bums-on-seats and/or start charging an appropriate fare for such. If you can't handle that, go home to England. Pure and simple!
Yes girls, it's called COMPETITION. Get out there and earn your bums-on-seats and/or start charging an appropriate fare for such. If you can't handle that, go home to England. Pure and simple!
Last edited by Ushuaia; 25th Feb 2004 at 05:06.
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Next Generation.
The cheapest fare on the Government regulated route Cairns - Horn Is is $199.07 . Thats a long way short of your claimed $600.
Try halving the % of Horn Is revenue versus Total and you will be closer to the mark.
Suggest you need to get your facts straight before going to print as this makes all your other claims suspect.
The cheapest fare on the Government regulated route Cairns - Horn Is is $199.07 . Thats a long way short of your claimed $600.
Try halving the % of Horn Is revenue versus Total and you will be closer to the mark.
Suggest you need to get your facts straight before going to print as this makes all your other claims suspect.
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Just remember---there are quite a few country routes that can only support one airline--------not 2.
going to-- SUNDAY and MONDAY flights full or thereabouts-----buisiness people and others returning to work or whatever after a week end in da big smoke
Leaving--------FRIDAY and SATURDAY.
The rest of the week--lucky to break even.
going to-- SUNDAY and MONDAY flights full or thereabouts-----buisiness people and others returning to work or whatever after a week end in da big smoke
Leaving--------FRIDAY and SATURDAY.
The rest of the week--lucky to break even.