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VB and the Pacific

Old 8th Feb 2006, 23:13
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VB and the Pacific

Virgin Blue to take on Qantas in Pacific
Katharine Murphy
February 09, 2006
SINGAPORE Airlines' bid to fly between Australia and the US could be deferred for another two years, with the Howard Government deciding to buy time by allowing Virgin Blue to compete head-to-head with Qantas on the lucrative route.

After agonising over the decision for more than a year, cabinet will consider a proposal within a month to defer Singapore Airlines' entry to the Pacific route, The Australian understands.

Transport Minister Warren Truss appears increasingly convinced that a budget Australian-owned carrier - rather than a premium "third-country" brand such as Singapore Airlines - will boost falling tourist numbers in the critically important market between the east coast of Australia and the US.

"If our objective is to have more people come to Australia, tourists and the like, then to achieve that we need a different product than that provided by the current services," Mr Truss told The Australian yesterday.

Qantas boss Geoff Dixon arrived in Canberra yesterday, ahead of a looming cabinet decision, to lobby parliamentarians to protect his airline from any additional competition from Singapore.

Qantas has made it clear to the Government it wants a decision on the Pacific route early this year to allow it to plan its future operations in the region.

Virgin Blue has said it needs two years to secure the necessary aircraft, equipment and crew to fly its aggressive budget service against Qantas, the dominant player on its most lucrative aviation route.

The Australian understands Mr Truss has already begun lobbying the US Secretary of Transport, Norman Mineta, to secure the necessary approval for Virgin to fly to the US seven times a week.

Virgin, as a new entrant to the Pacific route, would face restrictions on its ability to fly into the US unless Mr Mineta grants more landing rights.

Mr Truss said yesterday he would not pre-empt the cabinet's decision, but he argued in favour of Virgin gaining access to the key route.

"The advantage of Virgin operating is it is an Australian airline, it operates a different product and therefore profits would flow to Australia," Mr Truss told The Australian yesterday. "Virgin could also link up with Virgin Atlantic and the network it is trying to establish in the US."

But those in cabinet who support granting Singapore Airlines access to the Pacific route are likely to continue their dogged fight to force a final decision in favour of the Asian carrier rather than endure another deferral of the proposal.

However, Treasurer Peter Costello is strongly in favour of additional competition on the Pacific route, as is Industry Minister Ian Macfarlane, who has already proposed a phased entry for Singapore Airlines to fly between Australia and the US.

But aviation industry sources have questioned whether Virgin would be ready to fly the route in two years.
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Old 8th Feb 2006, 23:22
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gosh it'd be nice to see some 777 equip operated by vb. reckon they'll be able to do 7 services a week within 2 years? big call...
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Old 8th Feb 2006, 23:31
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Originally Posted by podbreak
gosh it'd be nice to see some 777 equip operated by vb.
Apparently about a month ago it was seen on a website (which I dont know, and am trying to find out - its not the airbus website, as I have checked it) that Virgin Blue Australia Pty Ltd had optioned A340's, and it listed Branson and Corrigan's names.... A search of the Airbus website orders & deliveries only shows the O & D's for January 2006... anyone have any suggestions where to look?
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Old 8th Feb 2006, 23:37
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A few months ago, I was advised VB looked into the A340 option.

It’s not fact, just rumour.
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Old 9th Feb 2006, 09:26
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Sinala 1 - it was at the Dubai airshow.

Airbus LOI 5 x A340 for the "Virgin Group". Nothing else forthcoming.
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Old 9th Feb 2006, 10:50
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Which they would probably get at a huge discount as nobody else seems to want them because of the high operating costs
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Old 9th Feb 2006, 16:13
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Thanks Grivation...

An f/o mate of mine was saying that he had seen it himself, definately stating 'Virgin Blue Australia Pty Ltd' or similar (his ears pricked up immediately, along with everyone else's in the flight planning room...)

Do you know where the info is available?

Thanks for your help!
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Old 9th Feb 2006, 16:15
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Are the A340's not for Virgin Nigeria?
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Old 9th Feb 2006, 17:06
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all VK are getting at the moment are VS cast offs and if I was operating from LOS I think I'd be doing that too.
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Old 10th Feb 2006, 02:01
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Danger

It makes sense to have another Oz carrier flying the Pacific rather than having overseas carriers ripping the revenue out of our economy.

SQ know that in the near future, aircraft will have the range to fly East Coast Oz to Europe and thus reduce the volume of pax passing through Changi. Singapore's importance as a destination will be reduced as shown with Honolulu when the B747SP (and later the B744's) started flying direct trans Pacific services. SQ needs an Open Skies policy with Oz to ensure that they are able to compete on the Oz - Europe route when the longer range aircraft arrive. EK are in a similar position. Without an Open Skies policy they will have to transit DXB whilst their Oz and European opposition will be able to fly the routes nonstop. This is why they are being so heavy in their lobbying of the Australian government. GB
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Old 10th Feb 2006, 08:13
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Yeh, interesting to watch.
Ek have multiple B777s sitting ready in EnZed and more planned for the West coast of USA...
Virgin also await on the West coast of the USA with A340s and are going for the Pacific connection after the HK/SYD step...

Who will be the first brand 'round the world?
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Old 10th Feb 2006, 08:30
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Going Boeing,

Singapore and HNL are not similar at all. HNL was really just a fuel stop and is now simply a low yield vacation destination. SIN is a high yield business destination and an important hub for flights throughout Asia and lower volume destinations in Europe. Do you think anybody will operate a Sydney direct Brussells service. Only LHR will get the direct, the rest of Europe will be via 2 sector trips through the likes of SIN,KL,HKG,BKK.
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Old 10th Feb 2006, 09:12
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Chocks Away I thought Pan Am was. BOAC used to via Australia. Isn't United doing it now?
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Old 10th Feb 2006, 09:22
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Originally Posted by Dynasty Trash Hauler
Do you think anybody will operate a Sydney direct Brussells service. .
If it can support about 250 pax a day then I suspect that LOTS of places in Europe start to become attractive again for something like a 787 or 777-200LR. Aircraft that can do Europe direct from Australia could be a very significant turning point in the international aviation scene.

There is a big chance that as SQ gets flown over more frequently, it's status as a destination for business purposes will also change. Interesting times.
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Old 10th Feb 2006, 09:33
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oops, forgot about PanAm, Animalclub.
Not sure about United though...
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