“We won’t get ourselves into the position we got in before where we were spread too thin and we had concerns about profitability on a seasonal basis. We won’t put ourselves in that position again,” said Mr Aggs.
For that reason, more flights across the Tasman were out of the question, with Virgin Australia currently flying to just one New Zealand destination — Queenstown.
“That was one of the areas where the previous organisation really struggled and in fact Qantas has struggled as have many other carriers to make trans-Tasman profitable,” Mr Aggs said.
“If you think about the amount of capacity that will come back on trans-Tasman it’s unlikely we’ll go into other destinations. There’s way too much competition at a unit cost level and it’s difficult to compete with wide-body aeroplanes doing that sector.”
Recent article from The Australian.
Found this rather disappointing as I was hoping VA would return to Auckland etc. Trans Tasman flights are ridiculously expensive at the moment, hard to understand how it can’t be profitable.
dyoung8
dyoung8
Virgin Australia - Velocity Rewards
Member since 15 Oct 2018
Total posts 5
“We won’t get ourselves into the position we got in before where we were spread too thin and we had concerns about profitability on a seasonal basis. We won’t put ourselves in that position again,” said Mr Aggs.
For that reason, more flights across the Tasman were out of the question, with Virgin Australia currently flying to just one New Zealand destination — Queenstown.
“That was one of the areas where the previous organisation really struggled and in fact Qantas has struggled as have many other carriers to make trans-Tasman profitable,” Mr Aggs said.
“If you think about the amount of capacity that will come back on trans-Tasman it’s unlikely we’ll go into other destinations. There’s way too much competition at a unit cost level and it’s difficult to compete with wide-body aeroplanes doing that sector.”
Recent article from The Australian.
Found this rather disappointing as I was hoping VA would return to Auckland etc. Trans Tasman flights are ridiculously expensive at the moment, hard to understand how it can’t be profitable.
Grannular
Grannular
Member since 31 Mar 2014
Total posts 272
Virgin is a business. They will fly their planes where they expect to be most profitable. They will have a lot of data behind their decisions.
tommygun
tommygun
Delta Air Lines - SkyMiles
Member since 16 Oct 2017
Total posts 282
WLG would not be profitable, QF talking about downsizing to a220 or E195 there. CHC also not enough traffic. AKL? Maybe in a few years?
dm12
dm12
Member since 08 Feb 2018
Total posts 200
They’re virgin Australia. A domestic airline now. They’ll only do intl if sufficient leisure traffic to make it profitable, ie Queenstown and Bali etc