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slice 25th Aug 2010 23:56

Merged: A330s for VB - Sth Africa and Phuket gone for VA - pick up Abu dhabi
 

The Virgin Blue Group of Airlines Announces Second Phase of Network Review
The Virgin Blue Group of Airlines announced today the second phase of its network review with the introduction of Airbus A330-200 aircraft for its domestic network and an overhaul of its international long haul network.

Two Airbus A330-200 aircraft in May 2011
Announcement with Etihad provides connections to Middle East, UK, Europe, Africa and Asia
V Australia to exit Johannesburg and Phuket routes in February 2011
SYDNEY 26 AUGUST 2010: The Virgin Blue Group of Airlines announced today the second phase of its network review with the introduction of Airbus A330-200 aircraft for its domestic network and an overhaul of its international long haul network.

“This is a major step in our Game Changing Program that will enhance our domestic and international capability by providing wide body aircraft on the transcontinental routes and a gateway to a more comprehensive international long haul network through our new partnership with Etihad,” Virgin Blue Group Chief Executive Officer, John Borghetti, said.

Domestic Network

Mr Borghetti said the introduction of the two Airbus A330-200 would increase the fleet size to 90 aircraft and provide additional flexibility, capacity and product opportunities to better penetrate both the leisure, corporate and government markets.

“The first A330-200s will operate services between Perth and the east coast of Australia enabling Virgin Blue to grow available capacity, especially at peak times, extending the airline’s appeal to business travellers,” he said.

Mr Borghetti said the wide body services would provide Guests with an enhanced in-flight experience and a convenient schedule, connecting seamlessly with the Group’s other domestic and international services.

“The Airbus A330-200 will truly be a game changer. This aircraft type is perfect for growing our fleet and network capabilities,” he added.

International network expands

From February 2011, Virgin Blue will consolidate its international network to two strategic hubs in Los Angeles and Abu Dhabi providing a gateway to a truly international network through partnerships. This is part of the strategic partnership with Etihad also announced today which provides the Virgin Blue Group seamless access to the Middle East; United Kingdom; Europe; Africa and Asia.

“With strategic hubs in Los Angeles and Abu Dhabi we will provide an extensive global network to our corporate and leisure guests.”

V Australia will withdraw from its loss making Boeing 777-300 services to South Africa and Phuket.

“As a minor player on the African route the prospects of achieving a return are remote,” Mr Borghetti said.

“The Phuket service is also sub-optimal for our Boeing 777-300 given our configuration.”
...so it begins!

beaver_rotate 26th Aug 2010 00:17

Wow I know a few blokes who had VA CRZFO interviews Tuesday and Wednesday this week? Was this a pointless exercise?? If so, bugger :sad:

So what is this now, type No. 4 to the fleet?? I thought 'low cost' airlines were traditionally single-fleet typed. They should really re-name it AN, really. :ok:

bubble.head 26th Aug 2010 00:26

So much for low cost carrier model structure.

Now the questions are. Who's flying them, and at what price? :ok:

MyerFlyer 26th Aug 2010 00:36

Good news for Virgin!

Also good news for QF/JQ with no more V Aust on the Phuket and Joberg routes.

Good to see Virgin/Etihad giving Emirates a run for their money on the Australia-Middle East-Europe run.

Thanks

73to91 26th Aug 2010 01:13

Were some QF Management asleep with regards Etihad and their code share agreement?

So QF/JQ apparently get some good news regarding Phuket & Joberg but wouldn't Virgin have pulled out because they were not getting the loads? So business as usual on those routes whilst missing out on the Etihad relationship.

Anyone else in the ME to get into bed with? Gulf Air perhaps?

Plus- - - does this just show the QF Board that John B is a guy to be taken very seriously indeed when it comes to 'international' operations and his contacts - after all, he has been around a lot longer than AJ & BB.

43Inches 26th Aug 2010 01:19


So QF/JQ apparently get some good news regarding Phuket & Joberg but wouldn't Virgin have pulled out because they were not getting the loads?
The statement issued in the release regarding Phuket and Fiji more pointed to that the 777 configuration was incorrect for the low cost leisure market. The VOz 777 has premium accommodation which is a waste of aircraft space on these routes.

qantel 26th Aug 2010 01:23

Suck :mad:QF. "The Airbus A330-200 will truly be a game changer." Damn right it will be.

QF its time to wake up :ugh:.. move that pompous management style out and start thinking like a leader in aviation.

DJ well done!! You deserve to succeed just by testing new markets and challenging you buisness model in creative ways.
:ok:

Wait till they pounce on the CNS market and really show QF (JQ) how its done.

1a sound asleep 26th Aug 2010 01:34

Roll on the CNS-LAX-CNS weekely service.:mad:

Great news for Virgin Blue. I see some huge success ahead

ozangel 26th Aug 2010 01:39

I'd assume that product upgrades and some sort of rebranding might appear before the 332 arrives then?

Not to reignite an old debate, but could this be a baby step toward replacing the Embraer and 73 fleet with some 318s, 19s, 20s and 21s? (long term?).

Are there any/many ports worth keeping that the 170/190 goes that the 318 couldnt?

After 6 hours flying time on a packed 737 to bali last night - the widebody will be a godsend on these longer flights.

Capn Bloggs 26th Aug 2010 01:57


"The Airbus A330-200 will truly be a game changer." Damn right it will be.

QF its time to wake up
I thought QF already had the 332 (and some 333s).


Are there any/many ports worth keeping that the 170/190 goes that the 318 couldnt?
The 318 looks like it has too much metal for too few seats.

43Inches 26th Aug 2010 01:57


Not to reignite an old debate, but could this be a baby step toward replacing the Embraer and 73 fleet with some 318s, 19s, 20s and 21s? (long term?).

Are there any/many ports worth keeping that the 170/190 goes that the 318 couldnt?
E170s gone next year, more E190s and 737 yet to be delivered. Don't think the 190s or 737 are going anywhere soon from the details in the release.


After 6 hours flying time on a packed 737 to bali last night - the widebody will be a godsend on these longer flights.
Don't think that this will change for a long time as the A330 aquisitions are to increase capacity and comfort on the trunk routes for business markets. They will be fitted out with business class so will not be effective like the 777 on leisure travel routes such as Fiji, Phuket, Bali.

ozangel 26th Aug 2010 02:29

43inches - true, but even on syd/mel/bne perth though - it's going to make the trip a lot more comfortable.

43Inches 26th Aug 2010 03:50

Ozangel,

The A330 and route consolidation is a good step in the right direction but the rest of the financials were not as good.

The Domestic underlying profit was $120 million but only $20 million has been during the last 6 months since the stimulus money has worn off.

The $800 million cash position is not from operating revenue but $240M from share issue and further savings on sale and lease back arrangements with new aircraft.

Take out the unusual one off items and profit/cash flow is where it was last year.

Hopefully things do pick up in the economy over the next six months and next year will be a good read.

AirborneSoon 26th Aug 2010 03:57

I have been praying for a widebody on the PER sector since forever, looks like there is a god afterall.

Taildragger67 26th Aug 2010 04:20

73to91,


Anyone else in the ME to get into bed with? Gulf Air perhaps?
There's also Qatar, which arguably has a better European network (and product) than Gulf. Doha is building a schmick new airport as well.

However that would be something of a slap in the face to QF's oneworld alliance partner in the ME, namely Royal Jordanian (and it may be that agreements with alliance carriers preclude arrangements with other carriers in a member's region, but that's just speculation on my part).

Oh but QF don't need to do that as soon, you'll be able to get to all those funny places via Singapore on Jetstar, because as Brucey B. said in May, "Southern Europe offered an attractive market and no-one else was really serving that market." :ugh:

scon 26th Aug 2010 04:37

Didn't see it above so

are these 330's leased / used or new from Airbus? Also will 2 of them be enough or will more be required?

Ramjager 26th Aug 2010 04:54

Great move by JB..and came at the perfect time with a fully trained group of highly disgruntled guys who will be busting at the chops to fly a big red jet....and stick it to REG.
Nice...:ok:

The Bunglerat 26th Aug 2010 05:17

An exciting announcement in some respects - and great to finally put an end to all the speculation of the last few months - but, notwithstanding the benefits of a widebody for the punters, as Bubblehead said in his/her post: who gets to fly it, and on what T&C's? That's the next thing on everyones' minds for sure.

inandout 26th Aug 2010 05:24

Interesting that SYD to LAX is same distance SYD to AUH.
Also as stated before the med haul go to VB on domestic (stated )and PB regional, yet to be called.
With a net profit of only 21m there will not be much shopping this fin year.
VA stay with the 777.
Next will be the names/colours and uniform and new config on the next 737.

ebt 26th Aug 2010 05:25

According to JB the decision on who flies them has not been made yet, but he ruled out contracting it to Strategic. Seems likely that it will be Virgin Blue crews, but he would not be drawn on talking about industrial relations earlier today.


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