Emotion about LCC offshoots aside it looks like JB has sensibly put a floor under VB's domestic yields ensuring that growth in the bucket and spade brigade segments doesn't erode his upper class VB operation. Qantas did it with JQ but hasn't managed all aspects well.

There is no way that JB will drive VB growth down into the Tiger cost structure-that's the very opposite of what he's doing as he seeks to knock Qantas off the Citiflyer perch. I doubt that one molecule of his thinking apparatus is focussed on a purely cost driven approach for higher yield markets. He understands value as a proposition.

Having said that I wouldn't be putting the family fortune into VB stock just yet. The path ahead for the Qantas Group might not seem clear or wonderful today but JB is not the only smart guy in the room. A new generation of QF management would have a much bigger springboard to use to launch into a "real" new future should the board choose to go that way.

Exciting times

Algie
I think your spot on there. But on the opposite side of the coin no longer will QF have to lower the price of the QF mainline (domestic) product to cover the VA "upper class" product which has until now been priced to cover both the low cost and the premium markets. In a way the way foreword is now clearer for QF, all they have to do now is pitch mainline against VA, interesting few years ahead indeed.

SN

I never cease to be amazed at the number of managment and business experts we have in the pilot ranks.

The industry is truely blessed. ;)

Maui

Tiger going from 11 to 35 A320's sounds like significant growth. Put it into context with the timeframe involved (ie 2018) and its only 4 new aircraft per year. Hardly what you would call massive expansion.

I wouldn't be too worried if I was a Virgin FO.
In fact, the feed it will pass on to V-OZ, PAC bro and Domestic will probably create more growth than if they weren't aligned with Virgin.

Same goes with Skywest, there may be initial downturns as destinations like Broome, Newman etc are rationalized but overall the feed that the XR network will provide to Virgin will probably grow the A330 operation sooner.

There will be no intergration if you believe what JB said in the papers. All will remain seperate, so they can compete for the work. If the ejet gets to expensive you just farm it out. Same with the 737. So good luck negotiating EBAs in that sort of climate.

Good for Virgin group though, bit of a masterstroke if they pull it off.

VAH States that they will now search for a new CEO for Tiger Australia. So the man who bought the carrier back to life, without a hitch to date, gets the chop?

Does this have something to do with the fact that he was COO at VA before he resigned in 2010?

When JB fires you - you stay fired.
If you try to make an industry come-back, he buys the company and fires you again. :D

Interesting timing in that Tiger has just appointed a new Commercial Director, Carly Brear from Easyjet.

That made my day... :D

But with someone else's money.

Well **** billy, why would you do it with your own, if you don't have to?:ok:

Are they one big happy group?
 

Give the guys in management enough rope and they will hang themselves. If you go from Domestic ops to International ops do you require an interview?, even though it is one big happy company:suspect:? is it based on date of Joining?

Missed out on one of the commands Green wave?

Hi guys,

I was wondering how the recent buy out would affect XR and their A320s? Would they be transfered to TT?

Why would they be transfered to TT? Seperate AOC, seperate company...

.... I'll have what he is smoking ...

Thought I witnessed some QF muppet on the box pushing that line this evening.

Going back a while regards Tiger Oz CEO: apparently his performance has been well noted by the Singapore connections and his talents will not be lost, not expected to be jobless - maybe more a question of where he pops up.

If Singapore have $$ tied up in any venture they will ensure they have input and influence, anyone who thinks this will be a circus with JB as the SOLE ringmaster is a tad off the mark IMHO.

All assuming the deal comes off....