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-   -   Virgin Australia : 315 Million Loss - How long can they survive? (https://www.pprune.org/australia-new-zealand-pacific/625002-virgin-australia-315-million-loss-how-long-can-they-survive.html)

morno 1st Sep 2019 11:11


Originally Posted by Snakecharma (Post 10559165)
Ah, Morno, you do know how far the 777 can go don’t you? And know it went to J’Burg for years, and Haneda is just up the road?

I’m referring to the comment that they could kick off Sunrise with them. If the older 777’s can do those distances, why are QF waiting for Boeing (discounting Airbus at the moment) to get the 777X to do those distances?

Rated De 1st Sep 2019 11:17


Originally Posted by morno (Post 10559200)


I’m referring to the comment that they could kick off Sunrise with them. If the older 777’s can do those distances, why are QF waiting for Boeing (discounting Airbus at the moment) to get the 777X to do those distances?

Share buy backs provide a far better return...for appropriately "incentivised" insiders.

pinkpanther1 1st Sep 2019 13:39

On a side note, could someone explain the reasoning behind parking the ATR fleet and then getting Alliance to operate the flying? I understand the ATR leases were overly expensive, but surely its better to fly the aircraft rather than pay the lease while it's backed against a fence and simultaneously pay Alliance for their services.....??

hoss 1st Sep 2019 23:02

They are unable to crew them, no takers! You can’t blame the new guys, knowing you could be stuck on the fleet for a long time. They will only allow 10% of the ATR pilots to transition to B737 per year. It was MD’s answer to stabilise the fleet. I think it may have backfired.

VH-FTS 1st Sep 2019 23:14


Originally Posted by hoss (Post 10559569)
They are unable to crew them, no takers! You can’t blame the new guys, knowing you could be stuck on the fleet for a long time. They will only allow 10% of the ATR pilots to transition to B737 per year. It was MD’s answer to stabilise the fleet. I think it may have backfired.

They offloaded the ATR flying to Alliance well before there was a crew shortage. Uncertainty about the fleet’s future kicked off the initial exodus from the ATR.

Blueskymine 1st Sep 2019 23:47


Originally Posted by morno (Post 10559200)


I’m referring to the comment that they could kick off Sunrise with them. If the older 777’s can do those distances, why are QF waiting for Boeing (discounting Airbus at the moment) to get the 777X to do those distances?

I’m saying kick off sunrise with ex VA 777s as a way of getting the fleet established. Sims, crews, it (the 777) flying and then start introducing the new toys to the longer routes.

Right now the 787 is too small for Santiago, hasn’t got the etops for joburg (and is too small) and the Japanese don’t want the A380 in Haneda,

Snakecharma 2nd Sep 2019 00:20

Morno, reduce the pax load and the 777 will do east coast oz to New York or to London ok.

it will do it at 28-35000 ft but it will do it!

the pax load would be a fair bit lower than now and no freight, but it would be a way to dip the toe into the market I guess.

the A330-200 can and has done Europe to Melbourne direct, and can do it with about 35-40 punters. Obviously not enough to make a quid.

Troo believer 2nd Sep 2019 00:24


Originally Posted by Blueskymine (Post 10558997)
It’d be interesting if someone got on the phone and offered the entire 777 fleet (and pilots during the establishment phase, and then seniority where it took them) to Qantas. They’d be able to cull the 747 operation early and use the VA 777s to get the sunrise operation up and running.

The 777s would also be ideal for Haneda and Joberg.

That’s the most ridiculous proposition I’ve ever heard. It would never happen I’m afraid. Wishful thinking on a grand scale.

Berealgetreal 2nd Sep 2019 02:15

Industrial unrest and disengagement on even a grander scale..

Blueskymine 2nd Sep 2019 02:39


Originally Posted by Berealgetreal (Post 10559633)
Industrial unrest and disengagement on even a grander scale..

Redundancy or a job. That’d be what it would boil down to.

VA will probably offload their Longhaul jets. It’s just a question of when.

Qantas is expanding in that space. With probably/possibly the equipment VA are using.

Qantas has done this in the past. Ansett 767 Pilots worked in previous rank for a period in the Qantas uniform. They then had to apply for their jobs and join the company on the bottom of the list. I’d imagine with a 2-3 year contract for the EIS phase, and number on the bottom of the list, once they lost their 777 seat, they’d still find suitable seats with a reasonable income elsewhere in the fleet. Year 3 pay as an A380 SO would probably pay the same as a VA 777 FO. (With overtime). A QF 737 FO would be close if you’re working and chasing hours.

At the end end of the day, if QF got the whole shebang cheap, it’d be a great way to kick it off. And help out a mate. If it were done sensibly, I’m sure the crews and unions would support it too.

Bleve 2nd Sep 2019 03:07


Originally Posted by Blueskymine (Post 10559638)
Qantas is expanding in that space. With probably/possibly the equipment VA are using.

Qantas' Project Sunrise is about flying SYD-LHR and SYD-JFK direct (ie non-stop for about 20 hours). Are you sure VA's B777's can do that with a viable commercial load? If so why are QF going through the process of getting Airbus and Boeing to offer proposals on how to do it?

Harbour Dweller 2nd Sep 2019 03:32


Year 3 pay as an A380 SO would probably pay the same as a VA 777 FO. (With overtime).
Maybe not when you consider there are a large number of VAA B777 FO's being remunerated to Captain salaries.

http://vipa.asn.au/wp-content/upload...-Agreement.pdf

EXISTING FIRST OFFICERS
Clause 54.1 Virgin Australia expects that all 38 existing First Officers will obtain a command position within the Virgin Australia Group by 30 June 2016. If this does not occur, Virgin Australia will pay each of the remaining 38 First Officers at that time the applicable Captain’s rates (starting at the entry level rate). For any relevant First Officers, these payments will be made from the first full pay period after 30 June 2016 until such time as they obtain a command.

Lookleft 2nd Sep 2019 03:51


Qantas has done this in the past. Ansett 767 Pilots worked in previous rank for a period in the Qantas uniform. They then had to apply for their jobs and join the company on the bottom of the list. I’d imagine with a 2-3 year contract for the EIS phase, and number on the bottom of the list, once they lost their 777 seat, they’d still find suitable seats with a reasonable income elsewhere in the fleet. Year 3 pay as an A380 SO would probably pay the same as a VA 777 FO. (With overtime). A QF 737 FO would be close if you’re working and chasing hours.
BSM this was a unique event and it was only because there was a massive vacuum to be filled they also did it on the 737 fleet. QF did not do it out of the goodness of their heart it was done for purely commercial purposes. If they needed to fill a VA shaped hole in the international market then they have plenty of Group pilots and airframes who would do the job. Most Ansett pilots who joined QF were processed in the usual way. The one advantage they were given was that their applications were processed ahead of other applicants.

KRUSTY 34 2nd Sep 2019 03:54


Originally Posted by Harbour Dweller (Post 10559654)
Maybe not when you consider there are a large number of VAA B777 FO's being remunerated to Captain salaries.

http://vipa.asn.au/wp-content/upload...-Agreement.pdf
EXISTING FIRST OFFICERS
Clause 54.1 Virgin Australia expects that all 38 existing First Officers will obtain a command position within the Virgin Australia Group by 30 June 2016. If this does not occur, Virgin Australia will pay each of the remaining 38 First Officers at that time the applicable Captain’s rates (starting at the entry level rate). For any relevant First Officers, these payments will be
made from the first full pay period after 30 June 2016 until such time as they obtain a command.

Crikey! Sweet deal.

donkey767 2nd Sep 2019 05:06

I love reading the comments on this thread. Here’s me thinking everyone on here was a pilot - clearly 90% of you are successful CFO’s who all hold an MBA from Harvard!

non_state_actor 2nd Sep 2019 07:59


Crikey! Sweet deal.
Amazing what you can get when you have leverage in a negotiation.

Capt Colonial 2nd Sep 2019 08:51

Some time ago a few mates over at Virgin told me that the rear cargo door hinders Virgin Australia’s ability to release, sell or lease back their B-777.

Virgin's decision on ordering the aircraft from Boeing was apparently to opt for smaller rear cargo doors which means (or so I am told) that the 777s cannot take standard international freight pallets.

I assume, if true, this makes them less appealing to other Airlines and Aircraft Leasing companies. Maybe not too suitable for what Qantas is looking to achieve in Project Sunrise?

Certainly, freight features as a supplementary form of income to offset weak passenger loads on flights between Australia and International destinations by carrying large cargo.

Is this true and another factor in Virgins current fiscal stress?

Blueskymine 2nd Sep 2019 09:37


Originally Posted by Bleve (Post 10559648)
Qantas' Project Sunrise is about flying SYD-LHR and SYD-JFK direct (ie non-stop for about 20 hours). Are you sure VA's B777's can do that with a viable commercial load? If so why are QF going through the process of getting Airbus and Boeing to offer proposals on how to do it?

Never said it was for the project sunrise routes. I said it would be ideal to kick off the program. Put it onto existing 747 routes as they go. Gear up for when the long range ones come and establish the crewing with sims, crews etc etc

Rated De 2nd Sep 2019 10:22


Originally Posted by donkey767 (Post 10559677)
I love reading the comments on this thread. Here’s me thinking everyone on here was a pilot - clearly 90% of you are successful CFO’s who all hold an MBA from Harvard!

Putting a great deal of value on cookie cutter post graduate programs is, at least in part responsible for the problems many businesses face.
Some of the best ideas originate from the people who actually do the job, but operationally most employees are hamstrung by "cost leadership" management and over arching HR.

morno 2nd Sep 2019 10:35


Originally Posted by Blueskymine (Post 10559839)


Never said it was for the project sunrise routes. I said it would be ideal to kick off the program. Put it onto existing 747 routes as they go. Gear up for when the long range ones come and establish the crewing with sims, crews etc etc

Yeah I think you’re dreaming. I don’t think QF need some ****ty old 777’s with no provision for cargo to go onto some routes that would be very freight heavy I imagine (refer old comments about the amount of freight coming out of, or it might have been into, Jo’Burg). Operationally, I doubt they would gain any benefit out of training crews earlier than they need them. It’s just another aircraft.

Snakecharma 2nd Sep 2019 10:47

just to clarify - the small cargo door is a pain in the arse, BUT the 777 still carries a lot of freight.

Blueskymine 2nd Sep 2019 12:22


Originally Posted by morno (Post 10559889)


Yeah I think you’re dreaming. I don’t think QF need some ****ty old 777’s with no provision for cargo to go onto some routes that would be very freight heavy I imagine (refer old comments about the amount of freight coming out of, or it might have been into, Jo’Burg). Operationally, I doubt they would gain any benefit out of training crews earlier than they need them. It’s just another aircraft.

So I suppose some ****ty old 747s are better then?

The 777 with no freight and the loads that QF fly on those routes would probably be ahead just on fuel burn.

PS They can still carry a shedload of freight without the cargo door

AerialPerspective 2nd Sep 2019 17:27


Originally Posted by Capt Colonial (Post 10559798)
Some time ago a few mates over at Virgin told me that the rear cargo door hinders Virgin Australia’s ability to release, sell or lease back their B-777.

Virgin's decision on ordering the aircraft from Boeing was apparently to opt for smaller rear cargo doors which means (or so I am told) that the 777s cannot take standard international freight pallets.

I assume, if true, this makes them less appealing to other Airlines and Aircraft Leasing companies. Maybe not too suitable for what Qantas is looking to achieve in Project Sunrise?

Certainly, freight features as a supplementary form of income to offset weak passenger loads on flights between Australia and International destinations by carrying large cargo.

Is this true and another factor in Virgins current fiscal stress?

It is true about the cargo doors... it's inconceivable that an experienced airline, as opposed to one where the decision were mainly made by people with no industry experience back then, would make such a dumb decision. It's almost like specifically ordering a 747 but asking them to put small doors on it. Stupid doesn't begin to explain it but lack of knowledge and/or incompetence does. Goodness knows what they do when they bring in a pallet from PER on an A330 going to LAX... must have to pay additional to have it unloaded and re-stowed in compatible ULDs. Dumb.

AerialPerspective 2nd Sep 2019 17:33


Originally Posted by Rated De (Post 10559873)
Putting a great deal of value on cookie cutter post graduate programs is, at least in part responsible for the problems many businesses face.
Some of the best ideas originate from the people who actually do the job, but operationally most employees are hamstrung by "cost leadership" management and over arching HR.

This is true, but this is an airline that almost has a culture of ignoring bad news (at least up until now)... like posting a big thing on LinkedIn a few months ago saying "We're going naked!!!"... reading it, it was about bloody lipstick... this is a place where there is more discussion day to day about whether the 3rd Cabin Crew at the back or the 6th check in agent from the left is wearing the correct shade of red lipstick... the expression 'fiddle while Rome burns' comes to mind... if PS is to be successful, he needs to make sure of the 750, most are those who spend their day swanning from one place to another checking lipstick colour and/or wording about the arrangement of flowers at the check in desk and get people who know what the hell they're doing and have the basic ability to prioritise operationally. I always imagine the NZ bail out as being typified by the parrot sketch... "this is a dead parrot"... "No, it's just sleepin' look, it's got positive free cash flow..."

DUXNUTZ 2nd Sep 2019 22:15

Have heard a few 777 and 330 Skippers have left for Asia or are looking. One would think 1 fleet or the other is on the chopping block. Codeshare with Delta across to LA makes sense, but not if they can’t even flog the 777s off because of the cargo doors on a few. Pretty easy to lease 330s, the ex emirates ones not withstanding.

Mr Google Head 2nd Sep 2019 22:47


Originally Posted by DUXNUTZ (Post 10560418)
Pretty easy to lease 330s, the ex emirates ones not withstanding.

If you mean XFA and XFB that virgin leased of Emirates they’ve been gone a long time...

non_state_actor 3rd Sep 2019 01:27


It is true about the cargo doors... it's inconceivable that an experienced airline, as opposed to one where the decision were mainly made by people with no industry experience back then, would make such a dumb decision. It's almost like specifically ordering a 747 but asking them to put small doors on it. Stupid doesn't begin to explain it but lack of knowledge and/or incompetence does. Goodness knows what they do when they bring in a pallet from PER on an A330 going to LAX... must have to pay additional to have it unloaded and re-stowed in compatible ULDs. Dumb.
Yes there is a storied history of being 'penny-wise but pound foolish'. You could write a business book on the number of projects/decisions that were done in the name of saving money that ended up costing a fortune or making the operations inefficient.

I suspect this is going to change under the new management shake-up and restructure.

coaldemon 3rd Sep 2019 02:22

Actually not that easy to lease A330's unless you discount the lease rental down to B737 NG numbers. Similar to what happened to the Emirates A330's in VA. Currently there is a glut of A330's on the secondary market. Most not worth the time to look at.

As for the small doors yes they were chosen so that they could get the paint scheme (which was apparently very expensive). No amount of argument could move the EGM involved they say. 2 of the 5 have the big doors and I think you will find them mostly on LAX-SYD to cover off the freight. The 3 with the small doors will not be worth much when they do get moved on.

AerialPerspective 3rd Sep 2019 03:28


Originally Posted by non_state_actor (Post 10560487)
Yes there is a storied history of being 'penny-wise but pound foolish'. You could write a business book on the number of projects/decisions that were done in the name of saving money that ended up costing a fortune or making the operations inefficient.

I suspect this is going to change under the new management shake-up and restructure.

I think you're right about it changing under the new management... but yes, the paying to remove in hold systems from the A320s of a certain local airline (now defunct) comes to mind...

AerialPerspective 3rd Sep 2019 03:31


Originally Posted by coaldemon (Post 10560502)
Actually not that easy to lease A330's unless you discount the lease rental down to B737 NG numbers. Similar to what happened to the Emirates A330's in VA. Currently there is a glut of A330's on the secondary market. Most not worth the time to look at.

As for the small doors yes they were chosen so that they could get the paint scheme (which was apparently very expensive). No amount of argument could move the EGM involved they say. 2 of the 5 have the big doors and I think you will find them mostly on LAX-SYD to cover off the freight. The 3 with the small doors will not be worth much when they do get moved on.

You mean they deleted the doors to save money for a bloody paint job??? Gee... and here I am thinking it was immaturity in aviation when all along it was just... stupidity... you mean that god-awful pearlescent stupid flag image and the red up the tail copied from QF... and what of the paint job now... gone... this truly is the Fawlty Towers of airlines... Gee I'd love to know who the EGM was...

PoppaJo 3rd Sep 2019 04:07

Don’t forget when they launched the 777 the freight operation was essentially non existent across the entire company. They carried probably a tenth of what they carry today. Freight was never in mind when they ordered it.

B772 3rd Sep 2019 04:59

VA are celebrating their 19th birthday today. I wonder if they will reach 21.

NGsim 3rd Sep 2019 06:02


Originally Posted by PoppaJo (Post 10560524)
Don’t forget when they launched the 777 the freight operation was essentially non existent across the entire company. They carried probably a tenth of what they carry today. Freight was never in mind when they ordered it.

Essentially the only thing an aircraft can carry (onboard) and earn money on is passengers and/or freight. Are you telling me just because they only had share at the time in 1 of those markets that they acquired aircraft whilst largely ignoring the only other revenue source? Not something I would jump to their defense over.

Snakecharma 3rd Sep 2019 06:47

I think the cargo door thing is being a little over blown.

yes, in an ideal world they should all have the bigger door, but it isn’t the end of the world and it does not really, in a practical sense, limit the freight it can carry. It just makes handling more of a pain.

the smaller cargo door is the standard fitting on the 777 and the bigger cargo door is the option. If it was such a huge deal there would be no choice. The decision to go with the standard door was a swift decision that had longer term implications, and was about a million bucks an airframe if I remember correctly.


cooperplace 3rd Sep 2019 07:03

BG now has a job writing a plan for the proposed Tassie AFL team. Be interesting to see how that goes.

PoppaJo 3rd Sep 2019 07:20

The Triple has long turnaround times at each end so loading in tight timeframes isn’t an issue.

Melbourne is often weight restricted half the year also due length and heat.

B772 3rd Sep 2019 07:22

From memory some or all of the SQ B777's were fitted with the standard small rear door.

What is the weight schedule for the VA B777-300ER's ?

The Bullwinkle 3rd Sep 2019 07:55


The decision to go with the standard door was a swift decision
Brilliant!!! :E​​​​​​​

Snakecharma 3rd Sep 2019 08:43

I wondered if anyone would notice :)

Near Miss 3rd Sep 2019 13:05


Originally Posted by B772 (Post 10560534)
VA are celebrating their 19th birthday today. I wonder if they will reach 21.

Most virgins don't last til 19, let alone 21.


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