Borghetti Swoops
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Borghetti Swoops
Virgin chief swoops on Qantas executives
As many have said, I think the old Q board who know everything may regret skipping over the B man.
Apparently a few more in the village have been given there good byes too.
As many have said, I think the old Q board who know everything may regret skipping over the B man.
Apparently a few more in the village have been given there good byes too.
I think there is some truth in what you are saying rescue 1.
Another very senior executive got the chop today.... well sort of (finishes up in December). He came out this arvo with a statement to staff, that his remaining time will be focussed on integrating V and VB into one airline.
As for the AOC, I wouldn't imagine so.... but JB is turning the place upside down, so anything is possible!
Another very senior executive got the chop today.... well sort of (finishes up in December). He came out this arvo with a statement to staff, that his remaining time will be focussed on integrating V and VB into one airline.
As for the AOC, I wouldn't imagine so.... but JB is turning the place upside down, so anything is possible!
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Time to sell the VB shares. If I wanted shares in a legacy airline, which is what JB and his EX QF mates have experience in and will turn VB into, I would have bought QF shares.
I always thought he was the wrong choice and it is just being confirmed.
I always thought he was the wrong choice and it is just being confirmed.
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Borghetti announces new Virgin exec team
Borghetti announces new Virgin exec team
JORDAN CHONG
June 30, 2010 - 7:29PM
AAP
Virgin Blue Holdings Ltd is to bring its loss-making,long-haul offshoot V Australia within the main airline group, under a string of changes announced on Wednesday by chief executive John Borghetti.
He has also given one person responsibility for both network and revenue management under changes to the airline's executive team.
Other changes include the creation of a new group executive for product and guest services and a new group executive for government relations.
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The airline group comprises Virgin Blue, Pacific Blue, Polynesian Blue and V Australia.
Under the new structure, Andrew David will be group executive of operations with responsibility for Virgin Blue's Australian operations and V Australia.
The change means V Australia will no longer sit as a separate entity but instead would be integrated within the Virgin Blue group.
The changes were announced to senior managers and staff on Wednesday in a statement by Mr Borghetti.
V Australia, which flies from Australia to South Africa, Thailand, the US and Fiji, commenced operations in March 2009 but is yet to move into profitability.
In February, Virgin Blue's then chief executive Brett Godfrey said he expected V Australia to be profitable by September this year.
But analysts have expressed doubt that V Australia will meet that target, given the airline's stunning profit downgrade last month when it said there had been a rapid deterioration in international and domestic leisure markets.
Liz Savage will be group executive commercial, responsible for sales, marketing, revenue management and network management.
Previously, different people had responsibility for revenue management and network management at the airline group.
The new group executive for product and guest services, Martin Daley, will give customers "a seat at the table" among Virgin Blue's executive ranks, the company says.
Jane McKeon, who was formerly head of government relations at domestic rival Qantas Airways Ltd, will take up the second new position, group executive for government relations
Mr Borghetti, a former Qantas senior executive, has hired a number of former Qantas employees recently as he seeks a larger share of the corporate market and diversify Virgin Blue's revenue base.
"We know we're going to remain a carrier that is focused on the leisure end, but it is going to be a carrier that is providing an alternative to the business traveller and we will be playing at both ends of the spectrum," Mr Borghetti said on June 8.
Virgin Blue stock closed down one cent, or 3.28 per cent, at 29.5 cents.
The airline also said passenger numbers across the network, but excluding Polynesian Blue, rose by 4.6 per cent in May compared with a year ago.
The number of international passengers was up 13.3 per cent, while domestic passengers rose 3.3 per cent.
© 2010 AAP
Borghetti announces new Virgin exec team
JORDAN CHONG
June 30, 2010 - 7:29PM
AAP
Virgin Blue Holdings Ltd is to bring its loss-making,long-haul offshoot V Australia within the main airline group, under a string of changes announced on Wednesday by chief executive John Borghetti.
He has also given one person responsibility for both network and revenue management under changes to the airline's executive team.
Other changes include the creation of a new group executive for product and guest services and a new group executive for government relations.
Advertisement: Story continues below
The airline group comprises Virgin Blue, Pacific Blue, Polynesian Blue and V Australia.
Under the new structure, Andrew David will be group executive of operations with responsibility for Virgin Blue's Australian operations and V Australia.
The change means V Australia will no longer sit as a separate entity but instead would be integrated within the Virgin Blue group.
The changes were announced to senior managers and staff on Wednesday in a statement by Mr Borghetti.
V Australia, which flies from Australia to South Africa, Thailand, the US and Fiji, commenced operations in March 2009 but is yet to move into profitability.
In February, Virgin Blue's then chief executive Brett Godfrey said he expected V Australia to be profitable by September this year.
But analysts have expressed doubt that V Australia will meet that target, given the airline's stunning profit downgrade last month when it said there had been a rapid deterioration in international and domestic leisure markets.
Liz Savage will be group executive commercial, responsible for sales, marketing, revenue management and network management.
Previously, different people had responsibility for revenue management and network management at the airline group.
The new group executive for product and guest services, Martin Daley, will give customers "a seat at the table" among Virgin Blue's executive ranks, the company says.
Jane McKeon, who was formerly head of government relations at domestic rival Qantas Airways Ltd, will take up the second new position, group executive for government relations
Mr Borghetti, a former Qantas senior executive, has hired a number of former Qantas employees recently as he seeks a larger share of the corporate market and diversify Virgin Blue's revenue base.
"We know we're going to remain a carrier that is focused on the leisure end, but it is going to be a carrier that is providing an alternative to the business traveller and we will be playing at both ends of the spectrum," Mr Borghetti said on June 8.
Virgin Blue stock closed down one cent, or 3.28 per cent, at 29.5 cents.
The airline also said passenger numbers across the network, but excluding Polynesian Blue, rose by 4.6 per cent in May compared with a year ago.
The number of international passengers was up 13.3 per cent, while domestic passengers rose 3.3 per cent.
© 2010 AAP
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Rudder,
Sorry ... "Legacy Airline" is a marketing term invented to make "Low Cost Carriers" look good. Nothing more, Nothing less. There is nothing "Old" or "Progressive" about either.
Full Service, and Low Cost carriers cater to different markets.
I suspect JB is about to make the QF board rue the day they passed him over.
N
Sorry ... "Legacy Airline" is a marketing term invented to make "Low Cost Carriers" look good. Nothing more, Nothing less. There is nothing "Old" or "Progressive" about either.
Full Service, and Low Cost carriers cater to different markets.
I suspect JB is about to make the QF board rue the day they passed him over.
N
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I have a question; where is JB going to raise all this capital to invest in end-to-end product in-order to compete with Qantas? I'm not sure on their cash position and I'd certainly challenge their ability to meet cost of capital aka service their debt (if there is any lenders prepared to give) the millions they're going to need to re-vamp their product? I'm not sure too many investors will be willing to fund considering their return on investment is haemorrhaging.
I'm not sure in DJ's investment grade but I would assume it's not top tier...
I'm not sure in DJ's investment grade but I would assume it's not top tier...
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T-VASI, I wouldnt be too concerned, I'm sure between Branson and the executive team the capital will be available. The other thing which seems to be overlooked is VB's cost base being lower than QF's by about 20%.
To me, if VB offer a business class at a cost of 20% less than QF's business class, then it should be a product capable of a descent yeild for VB.
To me, if VB offer a business class at a cost of 20% less than QF's business class, then it should be a product capable of a descent yeild for VB.
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Noip,
Sorry... Beg to differ.. it has nothing to do with marketing. It has to do with background and the competitive environment they came out of. QANTAS came out of a very effective two airline environment as a full service operator. It is a legacy operator. And JB was there a very long time.
Even QANTAS realised they couldn't change and compete as themselves effectively and hence Jetstar with a very different service offering and culture. The two don't mix. QANTAS is high cost and will tell you that they are high quality although "personally" I think VB has it all over them.
I still stand by the fact that these people come out of a completely different service offering and culture and it is time to sell the shares.
We are just going to have to agree to disagree on this one.
Sorry... Beg to differ.. it has nothing to do with marketing. It has to do with background and the competitive environment they came out of. QANTAS came out of a very effective two airline environment as a full service operator. It is a legacy operator. And JB was there a very long time.
Even QANTAS realised they couldn't change and compete as themselves effectively and hence Jetstar with a very different service offering and culture. The two don't mix. QANTAS is high cost and will tell you that they are high quality although "personally" I think VB has it all over them.
I still stand by the fact that these people come out of a completely different service offering and culture and it is time to sell the shares.
We are just going to have to agree to disagree on this one.
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if VB offer a business class at a cost of 20% less than QF's business class, then it should be a product capable of a descent yeild for VB
I think that's a very big IF. Assuming they want to offer a equal or better overall product. If they wish to chase the top end of town, Virgin will have to invest in infrastucture to do so. Thus adding to their cost base.
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Sunstar320,
That all-red get-up suits 737s and E-jets, but on a 773...
Maybe 'Virgin Pacific' might be a better tie-in name-wise with 'Virgin Atlantic' and also indicate that ops are widespread around the Pacific...
That all-red get-up suits 737s and E-jets, but on a 773...
Maybe 'Virgin Pacific' might be a better tie-in name-wise with 'Virgin Atlantic' and also indicate that ops are widespread around the Pacific...
Last edited by Taildragger67; 1st Jul 2010 at 07:28.