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VB to codeshare with United

 
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Old 5th Jun 2002, 08:20
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The Reverend
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VB to codeshare with United

Ananova:

Virgin Blue signs deal with US carrier United Airlines

Australian budget airline Virgin Blue and US carrier United Airlines have agreed to a code sharing deal.

United Airlines says the agreement will provide greater choice for Australian and US travellers.

The agreement allows passengers more seamless travel by using one code for their international and domestic flights with both airlines in each country.

"Passengers will benefit from United's extensive US network and Virgin Blue's broad Australian coverage," United Airlines Australia general manager Stephen Pearse said.

Virgin Blue chief executive Brett Godfrey says the agreement will also help to ensure greater diversity in the Australian market.

Following the collapse this year of the nation's second largest carrier, Ansett Airlines, Qantas has gained a commanding position in the domestic market.

A subsidiary of Virgin Group, Virgin Blue currently only flies along major routes within Australia but has plans to begin flying between Australia and its Asian neighbours.

Story filed: 04:10 Wednesday 5th June 2002
HotDog is offline  
Old 5th Jun 2002, 21:51
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Is this the start of the move away from the low cost model?

Codeshare will involve higher reservations functionality (read cost) and a move to full Star status would no doubt entail two class operations lounges etc. Allwill add to cost and move away from the Easy/Ryanair style models.

An interesting development.
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Old 5th Jun 2002, 23:33
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SK11 - I believe the main reason that Patrick's bought into VB was to consolidate it's transport empire - especially to tap into the Air Cargo side.

Patrick's have tied up rail and road in a big way and air cargo isnt far behind.
If I were Lindsay Fox I would be very very concerned as both Patricks and the Federal Government are forging resources to free the main roads of semi-trailer type transport and concentrate on seemless rail container haulage for a much cheaper price.

Patricks may just conceivably do what QF and the old AN did - lease space on established cargo carriers without all the associated hassles.
The one thing I do know is that B737's cant carry that much cargo and that something like a B767 would be nicer for that purpose (fill up with pax and cargo on domestic sectors - the perfect offset).

As for the Star Alliance - it was only a matter of time.
Even though the "cheap fare model" touted by Branson was an early advertising stunt the company has progressed far beyond that and will eventually encompass a business class type configuration, along with the standard economy.

It will cost dollars but can VB afford to throw away potential business from an Internation conglomeration willing to feed passengers and money in their general direction?

I think not and I know Patrick Stevedoring knows also.
TIMMEEEE is offline  
Old 6th Jun 2002, 02:39
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Well done, UA are one of my favourite "airlines".

It's certainly changed the game rules for a third carrier.
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Old 6th Jun 2002, 13:51
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Well i dont often agree with much on these bitter little Forums.
But I completely agree with you "Gaunty".

VB management are not stupid. They know how to compete and what to do to survive. For many years Branson has beat BA at the own game and as long as they continue to turn a profit he will do what he has to.

The UA code share is just the begining of the Star Alliance merger as well as some sort of Buisiness class mode (whatever form it takes).

As for the post about the coffs route. Again as long as VB are above operating costs it doesnt really matter what happens, weather its once a day or what. Thay are getting known on that route and the hard fact is, there fares are 1/3 cheaper than Qantas, and thats what the public notice.

VB have the capital to survive. They are not like the compasses and such who had to scrounge to find 30mil to start. They can be choosy in what they want to do and they dont have to rush.

Patrick"s did buy in for the frieght aspect (no secret there) and that will turn into its own idientity eventually using the VB resources.
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Old 6th Jun 2002, 14:02
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VB would not pass a star alliance audit at the moment, even BG admitted that.

Also, CASA would probably impose a restriction on their expansion too.

SQ could take AN's AOC and have trained crew along with aircraft, RES systems, Engineering and EBA's up and running quickly.

It could all happen very shortly after SACL sell SYD with a third party rider in the contract.
Richard Kranium is offline  
 

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