VAustralia New Routes
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VAustralia New Routes
Taken from http://business.timesonline.co.uk/to...cle3998893.ece
Wonder if it is true? Comments anyone?
Branson is moving on to Australia. Later this year he will launch V, an airline that will fly between Sydney and Los Angeles, San Francisco, Singapore, Hong Kong, Shanghai and Beijing, linking with existing Virgin Atlantic services.
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Makes complete sense to be able to offer people round the world tickets. Makes sense to make sure any through traffic stays with you or your affiliates.
Whether or not it will happen and the time frame are anybodys guess. The numbers have to add up before they will commit to anything though. There is always ideas coming from the man but I wonder how many actually make it into reality.
Whether or not it will happen and the time frame are anybodys guess. The numbers have to add up before they will commit to anything though. There is always ideas coming from the man but I wonder how many actually make it into reality.
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VERY Interesting information Ic_461....
I just posted your information on the V Australia Cabin Crew thread....It's the first I've heard about some of the new destinations...
I had heard a whisper about San Fransisco and I'll add two more to the list
1. New Zealand (day trip)
2. Perth (day trip)
This is because the plane won't be in use so they may as well be making money!
I just posted your information on the V Australia Cabin Crew thread....It's the first I've heard about some of the new destinations...
I had heard a whisper about San Fransisco and I'll add two more to the list
1. New Zealand (day trip)
2. Perth (day trip)
This is because the plane won't be in use so they may as well be making money!
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To be honest I wouldnt read to much into it.... A journalist has simply looked at all the destinations Virgin Atlantic fly to that can connect with OZ services.
No announcements have been made to the contrary.
As for the day trips - I think NZ would be a bad move given that pricing is already pretty low on the routes and dumping a 777-300 load of more seats is hardly going to help that
No announcements have been made to the contrary.
As for the day trips - I think NZ would be a bad move given that pricing is already pretty low on the routes and dumping a 777-300 load of more seats is hardly going to help that
V Australia
Not a real good time to be a start up operation!
The sentiment seems to be more about "reducing flying", "flying slower" and "parking aircraft". I wonder if they (DJ Management) will decide this outfit needs to go the way of the new reservations system they were designing and building - but couldn't get to work - for the DJ operation. Perhaps another write off to the tune of $40 million plus plus is on the horizon - $40m was the res system (give or take a few million).
The sentiment seems to be more about "reducing flying", "flying slower" and "parking aircraft". I wonder if they (DJ Management) will decide this outfit needs to go the way of the new reservations system they were designing and building - but couldn't get to work - for the DJ operation. Perhaps another write off to the tune of $40 million plus plus is on the horizon - $40m was the res system (give or take a few million).
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One 777 Trans Tas daily will save a whole B738
Sending a B777 to NZ makes sense to me as it would allow Pac Blue to expand on the Tasman/NZ domestic without the cost of an extra B737.
The V Aust B777 will have roughly double the capacity of the Pac Blue 737 and could be used on leisure oriented route(s) to substitute for some of the double daily flights, such as ChCH -Syd and Ch-Briis often is, (the leisure travellers would probably value not having the awful NZ 6.30am ish departure times and be pleased with the improved cabin IFE etc). ie one 777 flight a day will replace 2 x 737 800 return trips.
Hence one 777 daily trans-Tasman saves the cost of an additional 737 or frees up a 737 for other routes. Just by sending a 777 across the tasman once a week would (with some shuffling of flight times) allow Virgin to add a twice weekly service to say Queenstown without taking on additional aircraft.
The V Aust B777 will have roughly double the capacity of the Pac Blue 737 and could be used on leisure oriented route(s) to substitute for some of the double daily flights, such as ChCH -Syd and Ch-Briis often is, (the leisure travellers would probably value not having the awful NZ 6.30am ish departure times and be pleased with the improved cabin IFE etc). ie one 777 flight a day will replace 2 x 737 800 return trips.
Hence one 777 daily trans-Tasman saves the cost of an additional 737 or frees up a 737 for other routes. Just by sending a 777 across the tasman once a week would (with some shuffling of flight times) allow Virgin to add a twice weekly service to say Queenstown without taking on additional aircraft.
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Windy
... you have a good argument however it is a proven fact that frequency sells seats... otherwise QF would operate A380 SYDMEL (when they get them, of course).
... you have a good argument however it is a proven fact that frequency sells seats... otherwise QF would operate A380 SYDMEL (when they get them, of course).
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I agree that frequency can sell and command a premiums, but would add these cavets:
(1) thats far more so for business than leisure travellers and routes - Virgins trans tasman routes out of ChCH are leisure routes and Pac Blue is more leisure orientated than AirNZ or even Virgin Blue OZ eg no PacBlue lounge in ChCH and no IFE on Pac Blue Australians visitng ChCH are very much going for vacations or VFR and generally staying a week or so
(2) the very early morning flights out of NZ are not popular with leisure travellers eg often over represented in promo fairs so my proposed plan would shift cpacity to more popualr times.
(3) they can be selective on what days they reduce frequency ie select days where customers less fussed about frequency
(4) they better cabin ambience of the B777 would give them an edge over Jetstar
(5) on a lot of PAc Blue routes frequency is less than once a day so on the transmans daily freqiuency on a leisure route seems to work fine.
I would not recommend doing this frequency reduction plan on a business oreintated route, where double daily is valued.
FYI AirNZ is consistently charging healthy prices on Wgn OOL with a twice weekly frequency.
(1) thats far more so for business than leisure travellers and routes - Virgins trans tasman routes out of ChCH are leisure routes and Pac Blue is more leisure orientated than AirNZ or even Virgin Blue OZ eg no PacBlue lounge in ChCH and no IFE on Pac Blue Australians visitng ChCH are very much going for vacations or VFR and generally staying a week or so
(2) the very early morning flights out of NZ are not popular with leisure travellers eg often over represented in promo fairs so my proposed plan would shift cpacity to more popualr times.
(3) they can be selective on what days they reduce frequency ie select days where customers less fussed about frequency
(4) they better cabin ambience of the B777 would give them an edge over Jetstar
(5) on a lot of PAc Blue routes frequency is less than once a day so on the transmans daily freqiuency on a leisure route seems to work fine.
I would not recommend doing this frequency reduction plan on a business oreintated route, where double daily is valued.
FYI AirNZ is consistently charging healthy prices on Wgn OOL with a twice weekly frequency.
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I wouldnt be suprised if Voz delayed some of their intended launch services due to the current market. The timing of the launch couldnt be any worse than the end of this year.
Why?
Why would they want to delay services? They have a cheaper overall cost base (fuel hedging %'s notwithstanding) than QF and there is so much resentment at the effective monopoly on the Pacific that VA will be a surefire winner.
Now is the perfect time to start.
Why would they want to delay services? They have a cheaper overall cost base (fuel hedging %'s notwithstanding) than QF and there is so much resentment at the effective monopoly on the Pacific that VA will be a surefire winner.
Now is the perfect time to start.
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Not sure I agree entirely with the last two posts.
V Australia cost base is unlikely to be lower than QF - they have to offer International standard Business class on a relatively small fleet. And Virgin Blue costs are reportedly converging with mainline domestic QF.
They also face one-off start up costs, which probably lead to a budgetted loss for the first couple of years. As a side isue, does the 777 payload allow freight in reasonable quantity - if so there's another new start up cost.
And why does everyone think SYD-LAX is a QF monopoly; I thought United was the big gorilla on the block.
Remember both Oz and USA can designate more than one carrier to the route, but over recent time NZ, AA, CO have pulled out.
Finally; I believe you can pull the plug after you've sold tickets.
In that context, will QF proceed with Chile?
Just thoughts.,
V Australia cost base is unlikely to be lower than QF - they have to offer International standard Business class on a relatively small fleet. And Virgin Blue costs are reportedly converging with mainline domestic QF.
They also face one-off start up costs, which probably lead to a budgetted loss for the first couple of years. As a side isue, does the 777 payload allow freight in reasonable quantity - if so there's another new start up cost.
And why does everyone think SYD-LAX is a QF monopoly; I thought United was the big gorilla on the block.
Remember both Oz and USA can designate more than one carrier to the route, but over recent time NZ, AA, CO have pulled out.
Finally; I believe you can pull the plug after you've sold tickets.
In that context, will QF proceed with Chile?
Just thoughts.,
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if you're going to start an operation up Oct/Nov is the best time of year. Proving flights before the holiday season. Jan-Mar is always the worst with fewer people cashed up after spending it all during the school holidays. Economics in aviation will only get tougher as time goes on.
V Aus are on a winner. Why?
Volumetrically, 777 holds more underfloor cargo than 747-400 (look at the back of the 400, it is very restrictive).
QF may have better fuel hedging but VA are operating the far more economical 777 vs Qantas' 747-400s (albeit eventually the A380).
VA staff are way cheaper than Qantas, by a country mile (so much so they may have trouble getting crew). The FA's are way friendlier than QF and that alone will surely cause an exodus from QF.
VA also have an oncarriage agreement with Northwest/US Airways. This alone will feed many pax their way.
Finally, UA are a bit-player on the route. If you've ever flown that airline, you'll know why. QF has an effective monopoly on the Pacific and have squeeled like stuck-pigs to retain that status.
It's all about to change and about time too.
Volumetrically, 777 holds more underfloor cargo than 747-400 (look at the back of the 400, it is very restrictive).
QF may have better fuel hedging but VA are operating the far more economical 777 vs Qantas' 747-400s (albeit eventually the A380).
VA staff are way cheaper than Qantas, by a country mile (so much so they may have trouble getting crew). The FA's are way friendlier than QF and that alone will surely cause an exodus from QF.
VA also have an oncarriage agreement with Northwest/US Airways. This alone will feed many pax their way.
Finally, UA are a bit-player on the route. If you've ever flown that airline, you'll know why. QF has an effective monopoly on the Pacific and have squeeled like stuck-pigs to retain that status.
It's all about to change and about time too.
UA are a bit-player on the route.
UA appear to have a daily service SYD LAX and a daily service SYD SFO.
So they must at least be a two bit-player.
V Australia planning a daily service SYD LAX.
So they look like they will be the bit-player on the route.
So they must at least be a two bit-player.
V Australia planning a daily service SYD LAX.
So they look like they will be the bit-player on the route.
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I heard a whisper of a three month delay in their start date. Any truth to that? (Maybe based upon an earlier start date than the current one?) I have to agree that a Feb/March start would be less than ideal, particularly if they've already sold tickets for December/Jan flights.
I haven't looked myself, but my brother in law tells me he looked online at their prices and said they were virtually the same as QF for SYD-LAX. I have to say that surprised me. I thought their whole marketing push was aimed at offering cheaper seats than QF was offering.
I haven't looked myself, but my brother in law tells me he looked online at their prices and said they were virtually the same as QF for SYD-LAX. I have to say that surprised me. I thought their whole marketing push was aimed at offering cheaper seats than QF was offering.
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UA Service
I don't agree that UA are a 'bit player' on any route, but do agree that their service is atrocious. I flew with them J class and felt like I was sitting in economy with wider seats. What a waste of money. The big premium airlines are also laying off long haul frequency in a bid to save fuel costs. West coast to Sydney frequency would certainly be under review by the bean counters. The real battle will be between QF and V.