Wikiposts
Search
Australia, New Zealand & the Pacific Airline and RPT Rumours & News in Australia, enZed and the Pacific

Borghetti Swoops

Thread Tools
 
Search this Thread
 
Old 15th Sep 2010, 07:46
  #161 (permalink)  
 
Join Date: Sep 2009
Location: south pacific
Age: 39
Posts: 122
Likes: 0
Received 0 Likes on 0 Posts
Depends if the 2 parties agree to extend their agreement(VB and Samoan Govt) which I believe is up for renewal next month.....
bowing is online now  
Old 16th Sep 2010, 09:55
  #162 (permalink)  
 
Join Date: Sep 2010
Location: Brisbane
Age: 43
Posts: 18
Likes: 0
Received 0 Likes on 0 Posts
The Media Stunt was a bit of a face palm, very amateur and not much point.
vorky is offline  
Old 16th Sep 2010, 22:05
  #163 (permalink)  
 
Join Date: May 2009
Location: Doing a pre flight inspection
Posts: 254
Likes: 0
Received 0 Likes on 0 Posts
The Media Stunt was a bit of a face palm, very amateur and not much point.



For the exposure it got in the media I would say it was rather the opposite, that was the whole idea of it, get it on TV.
VBPCGUY is offline  
Old 17th Sep 2010, 01:12
  #164 (permalink)  
 
Join Date: Dec 2003
Location: BNE
Posts: 325
Likes: 0
Received 1 Like on 1 Post
What media exposure? It's been such a flop of a story that it didn't even warrant a headline on news.com.au. And I haven't seen it mentioned on TV - (mines usually running in the background all day).

Whats even worse is that it's on youtube - with the majority of user comments saying how much of a disappointment it was, that it looked like a badly choreographed school assembly etc etc - yet someone in the village of idiots is responding to the responses like they're trying to 'performance manage' the people that wrote them (i.e 'heres a big smile, now go f**k yourself').

Cringeworthy! Even a good number of the staff looked depressed to be there!

Dear John,

Please burn your dancing shoes and get back to turning the airline around. You don't have to act 'zany' for your new friends to like you! Don't be led astray by that Branson boy - he'll only ever take credit for your work and distract you from the task at hand. Remember, it was him and his favourite ass puppet Godfrey that created the mess!
ozangel is offline  
Old 17th Sep 2010, 08:57
  #165 (permalink)  
 
Join Date: May 2009
Location: Doing a pre flight inspection
Posts: 254
Likes: 0
Received 0 Likes on 0 Posts
I seen coverage of it on the news Sunday night and Monday morning, mentioned on radio also.
VBPCGUY is offline  
Old 18th Sep 2010, 00:12
  #166 (permalink)  
 
Join Date: Dec 2002
Location: Australia
Posts: 2,382
Likes: 0
Received 0 Likes on 0 Posts
Interesting article:

Virgin Blue changes course in battle to bag top flyers

Matt O'Sullivan
September 18, 2010



Virgin Flyer Credit Cardvirginmoney.com.au/FlyerCreditCard
Buy 1 Virgin Blue Seat, Get 1 Free w. the new Virgin Flyer Credit Card


IT IS the question John Borghetti is quickly becoming renowned for asking anyone he bumps into: ''Do you fly Virgin Blue?'' The airline's new boss wheeled it out again this week at a lunch for 300-plus executives and hangers-on in a Sydney hotel.

The 37-year airline veteran was slightly taken aback when only a small number of business types put their hands up. ''There's a bit of work to do, isn't there?'' he laughed sheepishly.

Just days earlier, on the eve of Virgin Blue's 10th-anniversary celebrations in a Melbourne hangar, Australian and US regulators had dealt two telling blows to his bold new plans aimed at moulding Australia's second-largest airline into an upmarket competitor to Qantas.

Advertisement: Story continues below
It highlights the challenges facing the former Qantas heavyweight and Virgin Blue's major shareholder, Richard Branson, in turning a one-time low-cost airline into an attractive alternative for discerning upmarket travellers.

''It's a bit like Kmart trying to take on DJs,'' says Paul Fiani, the managing director of fund management outfit Integrity Investment Management. ''Sure, it is possible, but they would have to invest a lot of money and reposition the business to do it properly. If they went too far with it, they could well lose some of their existing customers who prefer the no-frills approach.''

The mild-mannered Borghetti is well aware of the task he has taken on in an industry littered with the carcasses of failed airlines. Virgin Blue just broke even in the second half of last financial year, while Qantas's flying operations - including no-frills offshoot Jetstar - made only $17 million.

People might be flying more than ever, but the discounted fares that airlines are having to offer to stimulate demand means their bottom lines remain sick. Qantas's once main business of flying people around the world now brings in substantially less than its frequent-flyer business.

Over the past six months the discount dogfight for leisure travellers has intensified, and now a battle is about to break out between Virgin Blue and Qantas for lucrative business-class passengers.

More than ever, it raises doubts about whether four big domestic airlines - Qantas, Jetstar, Virgin Blue and Tiger Airways - can survive in a country of 22 million people.

Who can forget the collapse of Ansett, Compass, Impulse and minor players such as Kendall and Hazelton, SkyAirWorld and MacAir (otherwise known as Slack Air)?

Two years after the global financial system teetered on the brink, airlines are still struggling to pull themselves out of one of the worst downturns in travel demand.

''If history is any guide it's hard to see us sustaining four airlines in this market,'' former federal transport minister John Sharp says. ''Maybe we can extend it out to three airlines, but can we extend it out to four? It's hard to see. You would have to think some sort of rationalisation will take place.''

The winner over the past decade has been the travelling public. The number of seats on domestic flights has risen by almost 80 per cent to about 4.8 million a month, due mainly to the entry of no-frills airlines.

Low-cost airlines' share of flights within Australia and on routes into and out of the country has soared from 2 per cent of the market in 2000 to 45 per cent today, figures from the Official Airline Guide show.

The boon for consumers is stark: discount fares for domestic flights have almost halved in real terms since 2003 - the baseline for government aviation statistics. Business tickets have not fallen at anywhere near the same rate - they are about 6 per cent cheaper - but are still the lowest they have been since 2003.

The latter helps explain Borghetti's ambitions to break Qantas's near monopoly on the business travel market. He has been working overtime to shake up Virgin Blue since taking the reins in early May by axing unprofitable routes, rescheduling flights, overhauling its four brands, installing a new management team and forming alliances with other international airlines. His aim is to give business travellers what they want: flight frequency and better products and services on its aircraft and at airports.

His efforts to form alliances are intended to stop Virgin Blue's international business from burning a hole in its pocket. Put simply, he wants to use other airlines to help Virgin Blue build a large international network without having to fly its own avgas-guzzlers. Italian-born Borghetti talks often about the value of the ''Virgin culture'' he has inherited, but ultimately he will have to open his cheque book to spend on airport lounges and on-board products if the airline is to appeal to corporate customers.

It is a balancing act, however. He has to be mindful of keeping intact the airline's core business of flying leisure travellers around the country and overseas. ''I think Virgin knows this and will only change at the margin, and even that will take time,'' Fiani says. ''So while it's a reasonable approach for Virgin, I don't see it as much of a near-term threat to Qantas's corporate business.''

Insiders say Borghetti, 55, would not have taken on the job if he had to effectively buy the corporate market through heavy discounting because, quite simply, Virgin Blue does not have deep-enough pockets.

He accepted it on the basis that he did not have to give corporates 20 per cent discounts on fares to gain their custom. To do otherwise would have been the kiss of death.

However much his strategy is applauded by some investors, the first four months of his tenure has again shown that Virgin Blue and its rivals are susceptible to shocks beyond the control of even highly regarded industry veterans. Within three weeks of officially taking the reins, he had to issue a profit downgrade due to the discount dogfight between airlines for leisure travellers amid a shaky economic outlook.

He could breathe a little easier when Virgin Blue shares rallied by almost 60 per cent in the two weeks after he unveiled an alliance with Middle Eastern airline Etihad last month.

But that short honeymoon ended abruptly last week when US and Australian regulators flagged they would block Virgin Blue forming alliances with Delta Air Lines and Air New Zealand. Their draft decisions knocked the stuffing out of Borghetti's core strategy.

Despite the regulatory setbacks, Sharp, who is also the deputy chairman of Regional Express, believes Borghetti's game plan is the right one.

''John understands how Qantas wins the business market,'' he says. ''It will never have the business market that Qantas does, but I think it has the capacity to win a more substantial slice.

''The challenge for Virgin Blue is to keep a low-cost model operating while … offering a premium service for the business traveller. The other challenge is to pare the airline back to operating profitable services without affecting their network capability.''

The price war enveloping Jetstar, Virgin Blue and Tiger over the past six months highlights the reasons why Borghetti is targeting people who are prepared to pay for sitting at the pointy end of aircraft.

It remains a lucrative market despite the financial turmoil of the past two years. Industry insiders estimate the gross revenue - or value of tickets - from Australian corporates for international and domestic travel is about $5 billion (down from $6 billion before the global financial crisis).

Virgin Blue's only significant client win so far is the government-owned NBN Co. But with Borghetti having been the executive who looked after business bods at Qantas for years, many are placing their faith in his ability to attract other companies into the Virgin Blue tent.

So how will Qantas react to Borghetti's advances on its prized turf?

Alan Joyce, the Irishman who beat Borghetti to the top job at Qantas two years ago, is boosting the full-service operator's presence on routes it had previously allowed Jetstar to increase flights on.

As Borghetti knows well, Qantas is a formidable opponent given its frequent-flyer program and high-end services such as Chairman's Lounges at airports in Australian capital cities.

''It's pretty clear that Qantas is going to take the bull by the horns and go for it,'' says Rod Eddington, a former boss of British Airways and chairman of Ansett. ''The good news for Qantas is Virgin's international foray has been a very expensive one and it has limited its domestic options and ability to compete with Qantas.''

Eddington believes it will be a big challenge for Borghetti to meet his aim of lifting Virgin Blue's share of the business market from high single-digit figures to as much 20 per cent within the next two years.

''Virgin's balance sheet is much more stretched than it would be because of its international endeavours,'' he says. ''You don't double your market share by just doing more of what you do now. You have to make some substantive changes. Qantas and Jetstar are formidable competitors.''

By now, Borghetti had been wanting to put the final pieces of his international network jigsaw together. One of the big holes in his network is in south-east Asia, where Virgin Blue lacks an alliance partner.

Macquarie Equities has speculated that Virgin Atlantic is an ideal strategic partner to link to Hong Kong using the British airline's daily service between Sydney and London via Hong Kong.

However, other analysts believe Virgin Atlantic cannot give the Australian airline what it needs because most of the British airline's passengers originate in Europe.

After all, Virgin Blue needs an airline with a strong network in China or south-east Asia to channel passengers into Australia - not ''just someone who flies through it''. Singapore Airlines would be the top choice but is considered far less willing to accept any advances from Borghetti than others such as Malaysia Airlines.

But, as the past week has shown, any alliances plans are irrelevant if regulators cannot be convinced of their merits.

What can be assured is that a battle between Joyce and Borghetti for passengers at both ends of the travel market will become costly for all of Australia's airlines.

Graham Turner, the boss of Australia's largest travel agency chain, Flight Centre, believes the rapid rise in the size of the domestic travel market over the past decade could make it big enough for four airlines.

''But I don't think Tiger is strong enough to stay; it seems to be struggling to make money and grow,'' says Turner, who suggested Borghetti as a candidate for the top job to Branson last year. ''John has been through tough times before; I don't think he'll be too frazzled by some of the setbacks.''

Early last decade Qantas and Virgin Blue jumped into the gaping hole in the market left by Ansett's demise. Now, the tables have turned and four airlines have an expensive fight on their hands for Australian travellers.

''Borghetti's appointment means the game is afoot at both ends of the market - not just the leisure end,'' Eddington says.

''It is going to be a fascinating couple of years.''
Mr. Hat is offline  
Old 18th Sep 2010, 10:21
  #167 (permalink)  
 
Join Date: Aug 2005
Location: PPrune nominee 2011!
Posts: 1,561
Likes: 0
Received 0 Likes on 0 Posts
All I can say, is go get them DJ!
Skystar320 is offline  
Old 6th Oct 2010, 21:29
  #168 (permalink)  
 
Join Date: Dec 2002
Location: Australia
Posts: 2,382
Likes: 0
Received 0 Likes on 0 Posts
From today's Australian

Virgin firing on all cylinders as reservation system is restored | The Australian

...Virgin is moving ahead with its alliance with Etihad -- applying to the International Air Services Commission for capacity on services to Thailand, France, Greece, India and the United Arab Emirates -- after getting an initial green light from regulators.

The airline has also received support from Canberra and Sydney airports for its bid to reverse a ruling against a trans-Tasman alliance with Air New Zealand.
and from nzherald.co.nz

Call for overturn of Virgin ruling - Business - NZ Herald News

Sydney and Canberra Airports want the Australian Competition and Consumer Commission to overturn its opposition to an alliance between Air New Zealand and Virgin Blue on transtasman flights.

Canberra Airport said the proposed alliance would force a "competitive response" from Qantas and Jetstar on the route, the Sydney Morning Herald reported.

The airport said there was a "real risk" Virgin Blue would reduce or vacate the route if regulators did not approve the plan.

Sydney Airport chief executive Russell Balding said the deal would have "no meaningful impact on competition between airlines servicing transtasman routes and no meaningful anti-competitive detriment".

New Zealand airports want the regulator to stick with its original decision saying the alliance "is likely to reduce competition".
Thailand, France, Greece, India and the United Arab Emirates.. interesting to say the least.

Last edited by Mr. Hat; 6th Oct 2010 at 22:15.
Mr. Hat is offline  
Old 11th Oct 2010, 10:16
  #169 (permalink)  
 
Join Date: Sep 2010
Location: sydney
Age: 76
Posts: 260
Likes: 0
Received 0 Likes on 0 Posts
JB does not seem to be the same without GD and PG holding his hand!
unionist1974 is offline  
Old 12th Oct 2010, 05:12
  #170 (permalink)  
 
Join Date: Sep 2006
Location: Australia
Posts: 125
Likes: 0
Received 0 Likes on 0 Posts
what do you mean? im alittle lost with your comment, unionist1974.
KittyBlue is offline  
Old 12th Oct 2010, 05:21
  #171 (permalink)  
 
Join Date: Oct 2004
Location: Heaven
Posts: 584
Likes: 0
Received 0 Likes on 0 Posts
Who was Holding Whose Hand?

Il Duce doesnt need anyone holding his hand.
A lot of the nonsense going on at Virgin has absolutely nothing to do with Borghetti taking over.
Its a hangover from the previous CEO(?)
While at Qantas Borghetti was the sole voice of reason at the executive level
PG was the jolly green bean counter and Dixon was only where he was because of his mateship with Strong.
Qantas was managed by consultants and Borghetti.Dixon's contribution was the outdated concept of "silos".
Pity Borghetti didnt get the big gig at Qantas
DEFCON4 is offline  
Old 12th Oct 2010, 08:51
  #172 (permalink)  
 
Join Date: Sep 2006
Location: Australia
Posts: 125
Likes: 0
Received 0 Likes on 0 Posts
hell the 10th Anniversary video was old CEO stuff, no what Borghetti personally would do.

I think its good that Borghetti (apologies to him) didnt get the job at QF, so at least DJ have a fighting chance now to improve from what they originally designed/fell into the airline industry dramatically changed. My mates at DJ will be happy they have someone with the skills and development to lead them.
KittyBlue is offline  
Old 12th Oct 2010, 12:13
  #173 (permalink)  
 
Join Date: Oct 2009
Location: Alabama, then Wyoming, then Idaho and now staying with Kharon on Styx houseboat
Age: 61
Posts: 1,437
Likes: 0
Received 0 Likes on 0 Posts
The challenge for Borghetti is time. He has to turn the place around expeditiously. He has the skills as a leader, he proved that at QF without doubt. But at Virgin he has walked into a cluster f#*k. The place has been trashed by previous so-called management. Some have gone, yet some of them remain, and until he wipes that slate clean the progress in turning the ship around won't happen quick enough to stem the flow of profits going down the drain. He had the luxury of some decent managers under his leadership at QF, at VB he is not quite so lucky.
gobbledock is offline  
Old 13th Oct 2010, 06:53
  #174 (permalink)  
 
Join Date: Aug 2009
Location: Lisbon
Posts: 995
Likes: 0
Received 0 Likes on 0 Posts
Good morning,

On 30 June with the announcement of the Group’s new structure, Group Executive Operations Andrew David also advised of his intention to leave The Virgin Blue Group of Airlines.

Andrew commenced with us in February 2005. During that time he has made a wonderful contribution and has overseen many landmark projects in the growth and development of this airline.

He will make his way around the network to say farewell with his last day being 23 November.

The Virgin Blue Group of Airlines has appointed Sean Donohue as Group Executive Operations commencing on 25 October 2010. Andrew will provide a formal handover of the role and responsibilities in accordance with CASA requirements.

Sean is an extremely experienced airline executive with 24 years at United Airlines, one of the world’s largest and most well-regarded airlines.

His immediate last role was Chief Executive Officer, Designate, for a global private group bidding on the privatisation of Midway Airport in Chicago .

Please join me in wishing Andrew the very best with his future endeavours and make Sean welcome joining the Virgin Blue Group of Airlines family.

Kind regards,

John Borghetti
CEO and Managing Director
Virgin Blue Group of Airlines


Well that is a relief. At least JB didn't recruit from within, not that any internal applicant's have the 'must have`s' anyway. Hopefully he will bring in more external management as time progresses. Out with the trash and bring in the new blood. However I would like to suggest JB keep the broom going, don`t put it away yet as there is still some cleaning left to do !
Cactusjack is offline  
Old 13th Oct 2010, 14:36
  #175 (permalink)  
 
Join Date: Jan 2000
Location: US via Oz, Honkers & Blighty.
Posts: 371
Received 9 Likes on 6 Posts
The fact that anyone, even remotely connected with the management of United, is joining VB should ring some major alarm bells.

Having spent quite a few years flying in the US, working for one of UAL's contract carriers, I've seen first hand how UAL's management has farmed out mainline flying to the lowest bidder, with an army of eager youngsters willing to fly EMB's and CRJ's at poverty level wages. They retired an entire fleet of just over 100 73's in less than a year and replaced them with E170's and CR7's, that aren't flown by United Pilots.

UAL's ability to "Divide and Conquer" their employee groups should be a warning to all of us.

Last edited by Kenny; 13th Oct 2010 at 14:38. Reason: seplling.
Kenny is offline  
Old 14th Oct 2010, 10:24
  #176 (permalink)  
 
Join Date: Jul 2007
Location: in the classroom of life
Age: 55
Posts: 6,864
Likes: 0
Received 1 Like on 1 Post
Flew VB today for the first time in a few years....mostly QF and United and I would have to say I am pleasantly surprised, clean A/C, nice smiling cabin crew and tech crew (paxing somehwere) and less of the cheesey crap from years ago. Well done to EVERY employee I had contact with.

Maybe its Mr Borgs changes happening.

Last flight was on VUX, must be only a few weeks old and no IFE.....which is great because I reckon the IFE is undersubscribed and not worth paying for on domestic sectors.

Provide what people need in economy, and some of what people want for the business market and you are on a winner.

As for flying in and out of YSSY.... retard vehicle will be going to YSBK next time!

J
Jabawocky is offline  
Old 14th Oct 2010, 10:28
  #177 (permalink)  
 
Join Date: Apr 2010
Location: Asia
Posts: 1,030
Likes: 0
Received 0 Likes on 0 Posts
new logo?

Is this real or has someone been playing around in photoshop?

http://img.photobucket.com/albums/v212/auboy/virgpa.jpg

Looks similar to Atlantic's
wheels_down is offline  
Old 14th Oct 2010, 11:37
  #178 (permalink)  
 
Join Date: May 2009
Location: Doing a pre flight inspection
Posts: 254
Likes: 0
Received 0 Likes on 0 Posts
Last flight was on VUX, must be only a few weeks old and no IFE
Been in service around two weeks now VUO VUP VUQ VUR VUS VUT VUV VUW VUX and BZG are all the new ones that have never been fitted with crap2air. Plus add on the five aircraft that have left the fleet with it VOH VOG VBQ VBR and VBS and none of the ejets are fitted with it either, you can fast see it is something they are phasing out
VBPCGUY is offline  
Old 15th Oct 2010, 00:14
  #179 (permalink)  
 
Join Date: Feb 2009
Location: in the stars... looking at the gutter.
Posts: 463
Received 5 Likes on 3 Posts
Yuk.

the typeface makes it look like a women's magazine.
Goat Whisperer is offline  
Old 15th Oct 2010, 03:27
  #180 (permalink)  
 
Join Date: Sep 2010
Location: Brisbane
Age: 43
Posts: 18
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by Goat Whisperer
Yuk.

the typeface makes it look like a women's magazine.
Hahaha ... yes, would agree with that.

However it makes sense to realign the branding closer to the Virgin Airline group as a whole, for the last few years it has been a mess. With various Marketing managers coming through putting in their own 2c about it, it has made the brand a bit of a quagmire (giggity?).

The old blobby 'g' Virgin logo still makes an appearance every now and again, as opposed to the current cleaned up group logo.

Original type faces were Crillee and Eurostyle - this changed in 2007/8 to Adesso (looked like Comic Sans - still in use by Pacific Blue) and then finally in late 2008, Foundry Monoline, which at least had an air of professionalism to it. Unfortunately I've seen instances of all three fonts in use on the one page (hint: check the home page) ... :-/

For a very short period during V Australia's launch, they had their own font in use ... except the name escapes me. They were told to bring the branding back inline to prevent confusion.

So, at least with the clean slate, a more robust branding can be created - regardless of whether the jets arrive looking like a Cleo/Cosmopolitan makeover.
vorky is offline  


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.