Virgin top dogs and pollie's at Tamworth now announcing TMW -SYD from May 26.
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Poor old Jetgo. VA's 6x weekly service isn't exactly going to blow their product out of the water but more competition will still be unwelcome I would think.
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Well if Virgin have popped the SYD-TAM cherry, it won't be difficult to throw an ATR on BN-TAM. JETGO won't win that battle. "Jet Schmet" people don't care. They want points with their cheap fares.
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Interesting announcement still 3 months from start & dumping $85 fares.... I don't think Jetgo or TMW-BNE are even a consideration, maybe some slight collateral damage. Maybe!
This is very much a shot at Qantaslink, using Qantaslink's old tactics. It is not about making a profit, this is about taking enough pax away from the competition to deny them a profit. Considering this is Eastern's home base, for VA to take a dump on their front step, the symbolism wont be lost. There is more to this story than just 6 x ATR services per week! |
I doubt it is anything more than going where QLink currently has 100% of the market.
VA do BNE-BDB 6 or 7 times a week and it hasn't done much to QLink. They also compete several times a day on BNE-EMD/MOV/GLT/ROK, not to mention SYD-CBR/ABX/PQQ/CFS. SYD-TMW is about the only route in NSW where QLink has no competition. |
Is there any truth to the rumour that Eastern/QF threatened the council with the removal of the maintenance base should they permit a competitor to operate into TW?
Heard this about 12 months ago. |
How could they threaten that? ACCC gets a hold of that they are toast.
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I don't know. I imagine it would amount to anti-competitive behaviour.
It was just something I heard from a few sources and am interested to find out.......... It appears to not be that relevant now that VA will be operating the route, but is worthy of note. |
This will be VERY interesting.
Narrabri has wanted to restore RPT services NBR-SYD since December 2013. There has always been a segment of the market who preferred to drive over to Tamworth to get FF points, Lounge, baggage checked thru, cheaper fares etc. If VARA are working on the route and fares plunge further, what's that going to do to the viability of the Narrabri route? :confused: I am told that 3 airlines are courting the local council now (Jetgo, Pelican, Airlink maybe?).. we live in interesting times. :eek: |
If the two major airlines believe TW - SY will support 5-6 daily return services then arguably TW - BN is at least a 3-4 daily return market. A lowering AUD will assist the influx of overseas travellers to Australia but where does just Jetgo turn if either or both launch one or more services to BN ex TW?
This maybe a 'cheap' route to operate, definitely not a cheap route to compete on. With sub $100 tix on offer, the Jetgo hardware can't compete. Unlike GLA-SY, they have no comparative advantage ex TW. VA & QF will be watching their numbers closely and when the time is right, more than likely a new service will go up against JG. So how do they see off the competition and remain a competitive operator in this market? An alliance of sorts with another operator could be one option. Moreover, the best chance to remain in the RPT market and hedge risk to some extent would be to become a contractor, ala Cobham & Alliance. Clearly they're not marketers but they can operate the hardware and from all accounts, do it very well. As the only E135 operator in Australia, they have an instant comparative advantage provided they can open the minds of larger operators to see the benefits of the type at RPT on suitable sectors. Could this be Rex's easiest opportunity to morph into a jet operator? JG have opportunities, but it won't be by just flying A to B. I really believe they're best chance is not as a stand-alone RPT outfit but still, the time is right to be in RPT due to the relatively low fuel costs and a low AUD. Most of all, to have real skin in the game & be able to influence a merger or acquisition, they have to gain some 'street cred', a network or a critical mass in RPT, & unfortunately TW-BN won't provide that foundation. |
Dollar sinks = aircraft costs rising :uhoh:
[lease/insurance/engine reserves/parts/rotables/sim training/freight all in USD] *also inbound tourists on TW-BN-TW, you have to be kidding.. |
All quiet!
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TBM call your buddy NL in Las Vegas plenty of USD and Equipment hanging around over here -73F B75/76, living the American dream might throw a bit at Jetgo ......
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All Quiet
Too busy walking the streets drumming up business!:ok: |
Any truth to the rumour they are opening three new routes?
Good news if they are. |
Brisbane-Moree-Narrabri-SYD I would suggest
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BNE-CFS is calling out for a operator since Brindabella.It used to be 2 x daily J41'S .
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Jetgo expanding ?
New routes to be announced this Thursday apparently. |
Originally Posted by TT738
(Post 9356496)
Jetgo expanding ?
New routes to be announced this Thursday apparently. Albury hasn't had regular jets since VA pulled out their E-jets, I believe. |
Still with just three airframes?
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