Virgin Australia might not return to long-haul flying
Thread Starter
Join Date: Jan 2017
Location: MEL
Posts: 185
Virgin Australia might not return to long-haul flying
Interesting remark from Jayne Hrdlicka in this article, on the subject of international flying she said "whether we go back in with long-haul flying ourselves is an open question.”
So Virgin intends to do short-haul such as NZ, Bali and Fiji with its 737s but could skip establishing a new long-haul fleet for LAX and rely on partners like Delta. Makes sense if the recovery is going to be protracted and uncertain, why take the risk? Just focus on being a good domestic airline with a bit of short-haul too.
https://www.executivetraveller.com/news/how-virgin-aims-to-win-back-business-travellers-corporate-flyers
So Virgin intends to do short-haul such as NZ, Bali and Fiji with its 737s but could skip establishing a new long-haul fleet for LAX and rely on partners like Delta. Makes sense if the recovery is going to be protracted and uncertain, why take the risk? Just focus on being a good domestic airline with a bit of short-haul too.
https://www.executivetraveller.com/news/how-virgin-aims-to-win-back-business-travellers-corporate-flyers
Join Date: Jan 2006
Location: Sydney
Posts: 184
Originally Posted by MelbourneFlyer
Makes sense if the recovery is going to be protracted and uncertain, why take the risk? Just focus on being a good domestic airline with a bit of short-haul too.
Join Date: Feb 2002
Location: NSW
Posts: 128
Well here's an opportunity for the PPRuNe brains trust to start an Oz International carrier: from what I read here so many here know how to run an airline covering all bases from Chairman, CEO, COO, HOFO, marketing and all the other things including aircraft selection etc...
Go for it!
Go for it!
Join Date: Jul 2010
Location: Asia
Posts: 1,376
NZ, Fiji and Bali would be about it with the B737. Go longhaul and they're head to head with QF and the big boys in a different market. Unless widebodies are close to full with a decent number of premium class seats filled, the losses can be eye watering.
Best to codeshare with other airlines and act as their domestic network in Australia.
Best to codeshare with other airlines and act as their domestic network in Australia.
Join Date: Aug 2018
Location: Somewhere
Posts: 133
Doesn't having none of your own metal on Long Haul have a detrimental effect on your all important Frequent Flyer Program? In that you then have to buy seats off other airlines instead of your own. So you are gaining revenue from original ticket sale then giving away points which generate revenue and then given to another company? Wouldn't it give QF a big advantage in this domain?
Join Date: May 2016
Location: Sunshine Coast
Posts: 699
Originally Posted by non_state_actor
Doesn't having none of your own metal on Long Haul have a detrimental effect on your all important Frequent Flyer Program? In that you then have to buy seats off other airlines instead of your own. So you are gaining revenue from original ticket sale then giving away points which generate revenue and then given to another company? Wouldn't it give QF a big advantage in this domain?
Join Date: Jul 2009
Location: Australia
Posts: 150
Originally Posted by MelbourneFlyer
Interesting remark from Jayne Hrdlicka in this article, on the subject of international flying she said "whether we go back in with long-haul flying ourselves is an open question.”
So Virgin intends to do short-haul such as NZ, Bali and Fiji with its 737s but could skip establishing a new long-haul fleet for LAX and rely on partners like Delta. Makes sense if the recovery is going to be protracted and uncertain, why take the risk? Just focus on being a good domestic airline with a bit of short-haul too.
https://www.executivetraveller.com/n...rporate-flyers
So Virgin intends to do short-haul such as NZ, Bali and Fiji with its 737s but could skip establishing a new long-haul fleet for LAX and rely on partners like Delta. Makes sense if the recovery is going to be protracted and uncertain, why take the risk? Just focus on being a good domestic airline with a bit of short-haul too.
https://www.executivetraveller.com/n...rporate-flyers
Delta has everything that complements VA, a network that feeds directly into Australia, a North American base that then expands to the rest of the world and an extensive Asian network through the merger with NorthWest (originally, let's not forget, 'Northwest Orient').
Any move to re-establish with just one or two routes is a waste of time and resources. How many times does this need to occur (Ansett International, Air Australia...........) before we just accept that out of Australia, Qantas is embedded as the principal carrier and the way to compete is NOT to try and copy it but to approach the market from a different angle. No more of this SQ, EY, NZ, etc etc. rubbish with small interests but not enough to make a difference, get a cornerstone like DL and VA becomes a DL arm with serious clout and a credible alternative product. The VA 'niche' status might even offer a degree of competitive opportunity against Qantas' one-stop Project Sunrise which any other foreign carrier will find it impossible to compete against because they can't afford to configure part of their fleet to compete with QF ultra-long haul whereas QF ULA will be ALL that the fleet is doing.
Join Date: Dec 2001
Location: Brisvegas
Posts: 3,357
Qantas' one-stop Project Sunrise which any other foreign carrier will find it impossible to compete against because they can't afford to configure part of their fleet to compete with QF ultra-long haul whereas QF ULA will be ALL that the fleet is doing.
If QF can set up a fleet just for ULH so can any other carrier.
If QF want non stop Aus to Europe, then a European carrier can come the other way, or the US.
Join Date: Jul 2003
Location: Somewhere
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Join Date: Aug 2007
Location: All over the Planet
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Just maybe the boffins in Canberra are reassessing the nonsense that Virgin Australia is an Australian carrier within the meaning of the refs. It’s absurd that an entity whose ownership is 100% foreign could be considered Australian. It is farcical.
Join Date: Jul 2003
Location: Somewhere
Posts: 2,830
Just maybe the boffins in Canberra are reassessing the nonsense that Virgin Australia is an Australian carrier within the meaning of the refs. It’s absurd that an entity whose ownership is 100% foreign could be considered Australian. It is farcical.
Thread Starter
Join Date: Jan 2017
Location: MEL
Posts: 185
Originally Posted by Icarus2001
If QF can set up a fleet just for ULH so can any other carrier.
But how many similar jets would an individual competing carrier in London, New York, Paris or Frankfurt need? Only a handful, because there might only be two routes to Australia that needs them. And it's not efficient yo have tiny sub-fleets compared to the much bigger numbers Qantas is looking at.
If QF want non stop Aus to Europe, then a European carrier can come the other way, or the US.
Join Date: Oct 2007
Location: Aus
Posts: 1,567
In a regulatory sense what's the difference between going to LA or Denpasar or Nandi or Auckland? Either you can fly internationally or you can't.
https://www.smh.com.au/business/comp...08-p56spl.html
It really does make a mockery of the rules that everyone else has to follow. Especially in the case of QF that is hamstrung by these rules and the sale act which results in no major investors having controlling interests in the airline. This will impact future viability if competition is allowed to court internationals yet QF is stuck with 51% sporadic local ownership.
On the flip side, Virgin would be a dead and roasted duck by now without the loophole...
Join Date: Jan 2019
Location: Australia
Posts: 188
Originally Posted by 43Inches
On the flip side, Virgin would be a dead and roasted duck by now without the loophole...
There is no legislative restriction on foreign owned companies operating domestic only services in Australia (hence Virgin, Rex and now Bonza).
Whether or not there should be restrictions on foreign ownership of domestic carriers is another question entirely!
Join Date: Feb 2011
Location: Oz
Posts: 1,309
Originally Posted by Colonel_Klink
Whether or not there should be restrictions on foreign ownership of domestic carriers is another question entirely!
AirAsia said Tiger was on drugs when it decided to start in 2007. Very true indeed.
Take out Tiger and alongside a leaner and resurgent Virgin, the market was actually setting itself up sustainably for once. You can’t say we lack competition, Virgin has now reduced fares, Jetstar runs the budget space, Qantas the high end...and so on. Then come along these time wasters.
