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Virgin's the latest in the air

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Old 15th Nov 2004, 15:21
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Virgin's the latest in the air

Tues "The Australian"

Virgin's the latest in the air
Steve Creedy, Aviation writer
November 16, 2004

SEPTEMBER proved a terrible month for Virgin Blue and its customers as one in four of the low-cost carrier's flights arrived or took off late - pushing its punctuality performance to the lowest level since statistics began last year.

Department of Transport figures released yesterday show Virgin's 76.6 per cent on-time departures for the month fell well short of those recorded by its major competitors.

The result was 11 percentage points lower than arch-rival Jetstar's 87.6 per cent and almost nine points lower than the 85.3 per cent of Qantas flights which departed on time.

Virgin's on-time arrivals fared only marginally better with 76.7 per cent arriving within 15 minutes of schedule, compared with 87 per cent at Qantas and 89.7 per cent at Jetstar.

Virgin spokesman David Huttner said bad weather had reduced on-time performances across all airlines in September but this was compounded at Virgin when resources became too stretched to handle school holiday traffic.

He said many days in September ran normally but those that were below average were "way below average and we issued a lot of credit notes and compensation on those days".

"We got caught in the mornings, especially during some of the school holidays on a couple of key dates, with some rolling delays which affected us," he said. "Once these started in the morning, we weren't able to recover for the rest of the day. On top of that, we had a major IT outage in the month."

The airline said its October on-time performance had risen to 82 per cent.

The news comes a day before half-year results for the airline - 46 per cent owned by Chris Corrigan's Patrick Corp - with analysts divided over profit growth. In August. Virgin warned that pre-tax earnings for the first four months of 2004-05 were down 22 per cent on a year ago.

Virgin has been battling a fresh onslaught from Qantas offshoot Jetstar and while revenue growth is believed to have been strong, both the major airlines have been hit with higher fuel costs, offset by a rising local currency.

Broker Goldman Sachs JB Were yesterday downgraded first-half profits, while Merrill Lynch downgraded its full-year earnings forecast, both on the basis of fuel costs.

Virgin shares were up 1c to $2.08 yesterday and have surged ahead of the results from lows around $1.65 in the past month.

Mr Huttner said the airline was now putting twice as many passengers through some gates as Ansett had and this had prompted it to speed up a three-month trial of its Blue Check self-service kiosks, the first of which went live in Brisbane yesterday.

The kiosks, expected to be unveiled at other major airports next year, allow passengers to check in, print a boarding pass and choose a seat.

"Part of the reason they were fast-tracked is that we realised in September that we were at the limits of some of our operational capabilities," Mr Huttner said.

Chief executive Brett Godfrey said the Blue Check system would be able to increase flights from selected airports without creating longer check-in lines or raising costs by adding check-in counters to cope with future demand.

Virgin's problems dragged down the industry on-time departures average from 88.5 per cent in August to 85.4 in September. On-time arrivals fell to 85.5 per cent from 87.8 the previous month.

Cancellations also grew in September as the airlines axed 433 flights, boosting cancellations as a proportion of scheduled services from 0.7 to 1.2 per cent. Qantas cancelled 163 of its flights (1.6 per cent), Virgin axed 148 (1.8 per cent) and Jetstar canned 45 (1.3 per cent).

Perth-based Skywest and Regional Express again led the regional carriers.

Skywest benefited from fewer flights and a less complicated route structure to wave off 93.8 per cent of its flights and land 94.7 per cent within the 15-minute margin. It was closely followed by Rex with 92 per cent of arrivals and 90.8 per cent of departures on time.

Just under 89 per cent of Qantaslink flights left on time but only 86.5 per cent reached their destination on schedule.

==========================================
Wirraway is offline  
Old 15th Nov 2004, 21:17
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Funny how things come back to bite you - as I recall, it was Virgin who lobbied hardest and loudest for punctuality tables to be public domain!
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Old 16th Nov 2004, 06:49
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Yes, they did, but i don't ever recall DJ saying they were always going to be on top of the puncuality tables

So what has come back to bite them? They still publish them whether they are good or bad.

DJ737
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Old 16th Nov 2004, 21:17
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Dj737 - really....? I could have sworn I read the following on the Virgin Blue website

At Virgin Blue we want you to have a good time. We're constantly looking at ways to improve our On-Time Performance so we can keep you punctual, time and time again. Compare us to the competition and you will find we are one of the best on time performers in the world. In the meantime, we will continue to do our best to ensure you arrive on time, every time.
Or maybe this, from www.virginblue.com.au

Virgin Blue Sets Global On Time Performance Standard

Virgin Blue has soared to new on-time performance* (OTP) heights with the latest figures revealing that 90% of the low fare carrier’s flights departed as scheduled.

The figure exceeds Virgin Blue’s previous OTP record of 89% and highlights the airline as a world leader in on-time performance.

Today’s announcement is in keeping with Virgin Blue’s promise made back in October to publish it OTP statistics for better or worse. While Qantas is yet to respond to Virgin Blue’s challenge to do the same, Virgin Blue will continue to provide full transparency to the travelling public for the first time in aviation history.

Virgin Blue, Chief Executive, Brett Godfrey, said, “November’s achievement of reaching 90% OTP sets the benchmark, not just here in Australia, but globally.

While we are still waiting for Qantas to publish its performance results, we know Virgin Blue surpasses the market leaders in both the US and Europe. .”

Virgin Blue recently conducted a survey of thousands of business travellers who fly more than 12 times a year which revealed that aside from safety, OTP far exceeded in-flight meals and frequent flyer points as their priority.
or this....(getting the picture...?)

Brett Godfrey said, “We believe Virgin Blue has the best OTP in Australia but it’s hard to tell for sure as our competition doesn’t want to come clean on their performance.
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Old 16th Nov 2004, 23:57
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tinpis
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Did I hear something about Ryanair on the wireless this morning?
 
Old 17th Nov 2004, 00:02
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Ah Johnny, nothing like a dose of reality to rub it in one's face.

DJ737, it was VB that kicked up a stink and demanded that the figures be published and made public.
They are now as a result and clearly they dont meet any of the expectations listed in VB's web site.

Call it false advertising maybe?

VB's 6 monthly results have just been released and although a profit was delivered, it was far short of expectations.

Net ordinary profit down 2%.
Operating expenses up 31%

The share market has responded with a 3% decrease in their share price.

Looks like they realise that JetStar are here to stay and have severly eaten into VB's ability to expand.
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Old 17th Nov 2004, 07:25
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Still can't find anything saying DJ were always going to be at the top of the punctuality tables

Maybe i'm missing something?

DJ737

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Old 17th Nov 2004, 08:01
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Funny how things come back to bite you - as I recall, it was Virgin who lobbied hardest and loudest for punctuality tables to be public domain!
If the fact that Virgin Blue lobbied hardest and loudest for these figures to be made public, then they have demonstrated two things.

1. They are not afraid to show the public their performance, be it good or bad.
2. They are responsible for motivating the other airlines to improve their own performance which has resulted in benefits to all travellers, regardless of their airline of choice.

I don't quite see what all the fuss is about.

BW
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Old 17th Nov 2004, 09:49
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DJ737,
He may not have said those exact words, but it was heavily implied, "Setting global standard" etc. Now we don't hear anything from Mr Godfrey about it!

While on the subject of DJ, what is with quite a number of DJ pilots taxiing very slowly often blocking other traffic, then holding well short of the holding point??? A few QF Airbusses are also holding well short of the holding point, but it's being addressed. It's simple airmanship taught from day 1!
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Old 17th Nov 2004, 11:52
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Unhappy

Sky patrol, try getting stuck behind a DJ in a stepped descent!
About as much fun as you can handle in a life time.

DM
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Old 17th Nov 2004, 12:21
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Sky patrol, try getting stuck behind a DJ in a stepped descent! About as much fun as you can handle in a life time.
Why? Is it all a bit too much for your FMC, and you might actually have to think a little?

NG
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Old 17th Nov 2004, 13:37
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Grrr

You would have read that in an 'independant audit' would you NG?
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Old 17th Nov 2004, 20:12
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If DJ increased the speed in which they flew their aircraft I am sure their on time arrival performance would increase out of sight. If you have ever been stuck behind one of their aircraft (either on the ground or in the air) you will know what I mean.
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Old 18th Nov 2004, 10:00
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Phlanger, he was probably following a red rat, now that is a slow operation. And fuel efficient.. NOT
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