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Branson Explores The LA Route

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Old 13th Dec 2004, 16:26
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Branson Explores The LA Route

Fri "Australian Financial Review"

Branson Explores The LA Route
Virgin Blue and its big sister may soon be causing Qantas serious grief, writes Katrina Nicholas.

Date December 10th, 2004

Qantas's dominance on the lucrative Sydney-Los Angeles route looks likely to be challenged after Virgin Atlantic chairman Richard Branson pledged yesterday to help local low-cost carrier Virgin Blue break the national airline's stranglehold.

Sir Richard told The Australian Financial Review that Virgin Atlantic was considering teaming up with Virgin Blue to create a new carrier to fly the route. The carrier would be majority owned by Virgin Blue.

"It's something we'd love to see happen and something we are exploring," Sir Richard said.

"I would hope we would have a decision on that within the next four to five months and, if we do do that, there would also be other long-haul routes that the new carrier would look at, including Japan and China."

A new carrier muscling in on the Sydney-LA route could damage Qantas because the airline makes about a third of its international profit from the flights.

Virgin Atlantic made its first London-Sydney flight earlier this week and hopes to gain permission to fly to London from other Australian capital cities, including Melbourne and Brisbane.

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Old 14th Dec 2004, 06:13
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Well Well, is it just me or can everyone including DIXON see the writing on the wall !!!!!!!!!
Dixon's arrogance and crying about other carriers on the OZ - LA routes can only go on for so long.

WIth Q's majority of profits coming form this government controlled monopoly it will be a sad thing to be a shareholder here when TWO far superior service carriers such as Singapore and more so ATLANTIC start flying it.
It is has long been known in the business world that many people only fly Qantas and put up with there below Par service and FA attitudes because of the lack of choice. That will change soon !!!!!!! (and hence so will the Q's profit and future)
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Old 14th Dec 2004, 07:27
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Here we go !!!

VIRGIN PACIFIC with Airbus A340's owned by VB, VS and SQ.

Can hardly wait ..... \\/\//
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Old 14th Dec 2004, 09:57
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And this is a surprise to people? Hello!?!?!?!
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Old 14th Dec 2004, 19:04
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And I bet there will be no Aussie jobs for crew. Probably (s)crewed out of NZ.
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Old 15th Dec 2004, 00:07
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Not so fast. CX recently tried in vain for SYD-LAX.

A lot of palms would have to be greased for that one. My tip is.....no chance.
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Old 15th Dec 2004, 03:44
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hang on, CX was going for 5 freedom traffic. The branson carrier will be based out of australia therefore it will be an 'australian' carrier therefore have a right to operate if there is deemed to be enough traffic on the route. Ol' dicko will say that there isn't but he also believes in the tooth fairy.
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Old 15th Dec 2004, 04:34
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Emirates will probably take more than just a passing interest in how successful Branson is in removing the QF monopoly to the west coast of the U.S.

QF will fight this tooth and nail, but in the end, competition in the market place is the only solution.

About time.
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Old 15th Dec 2004, 06:36
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Hit the nail right on the head dodgybrothers.
My bet is VP will be 50% owned by VB and probably the rest by VS / SQ making it an Australian company entitled to the same rights as QF. There will and can be no argument from QF. As for Emirates, non Australian, no contest. Selling to Patricks does have it's benefits.
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Old 15th Dec 2004, 14:37
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I wonder will VP be a vehicle for VA to get shot of its 343s? And did SQ ever finally unload theirs?
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Old 19th Dec 2004, 03:18
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MarkD,

What's wrong with the 343? Why would they want to get rid of them?

Regards.
 
Old 19th Dec 2004, 13:49
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Matca

Three types in fleet (744, 346, 343) could be reduced to two with more 346s or even (whisper it) two engines 4 long haul

SQs 343 went to EK I think (from what google tells me anyway).
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Old 19th Dec 2004, 21:18
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MarkD,

Got it!

Thanks.
 
Old 19th Dec 2004, 22:01
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Arctaurus, check your dictionary for the definition of a monopoly.
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