Member since 24 Oct 2010
Total posts 1,010
Virgin Australia has opened the books on the July-December 2016 financial period, and while the airline reported $42.3 million in pre-tax profit, that was almost half of the $81.5 million pre-tax profit in July-December 2015 while associated costs including restructuring charges and 'fleet simplification' sunk this to an overall loss of $A21.5 million.
Virgin also announced it would delay delivery of its first Boeing 737 MAX jet to late 2019 (previously 2018) and slim down the variety of aircraft in its domestic fleet by selling the last six of its Embraer E190 jets.
On the upside, the airline confirmed a mid-year launch for flights to Hong Kong (the Aussie anchor city has not been revealed but we're hearing it will be Melbourne) with "direct flights to mainland China" (Beijing was previously cited by the airline) to follow.
What's your take on those announcements, Virgin Australia's results and its future?
Member since 10 Aug 2015
Total posts 156
Hopefully Brisbane will get the Beijing flight; it would be the most sensible for VA considering no one already serves it!
Virgin Australia - Velocity Rewards
Member since 08 Feb 2016
Total posts 83
My sources at Virgin told me a different port to HK, being Sydney. Though this news is a few months old..
Another snippet from this morning: with regard to inflight Internet, Virgin Australia CEO John Borghetti says the airline is Ã¢â¬Åplanning a big announcement very shortly."
Qantas - Qantas Frequent Flyer
Member since 28 Jul 2011
Total posts 51
I'm still disappointed they are getting rid of the E190 jets. They are great for short trips around the east coast and are so much more comfortable in economy. Will those last 5 737s just make up for the E190 loss?
Member since 26 Feb 2016
Total posts 38
When connecting to HKG or PEK, would VA link its membership scheme with HNA's, or at least provide some benefits to its members in HNA's network?
Member since 17 Oct 2014
Total posts 1
Virgin swung to a net loss of $21.5 million in the December half, including the impact of restructuring costs, compared with a net profit of $62.5 million a year earlier.
Underlying profit before tax was $42.3 million, down $39.2 million. Virgin earlier this month posted a 37 per cent fall in second-quarter underlying earnings.
Member since 21 Jan 2014
Total posts 271
A stagnant business going nowhere, it is losing market share as a total in the domestic market and lacks depth and volume in its business. It is very poor in regional Australia so lacks the feed that QF enjoys through its network, in Townsville for example it is now down to 22% pax as a total , many other regional centres are not much better. The anti QF sentiment it enjoyed for a period has gone and now it has been found wanting in the real things passengers want, flights schedule, route options and connections. It really lacks a defined focus and now lacks the capital to address many of its shortcomings. The only way it can succeed is to return its focus on its domestic service where it enjoys some protection from competition through govt legislation and rely on its partners for international options.
Member since 04 Nov 2011
Total posts 215
My view on VA has always been and still remains the same today....it does not know what it stands for. I honestly think it's never been able to shake its low cost carrier heritage. It's essentially become some kind of hybrid airline, reliant on virtual networks and a half in / half out domestic offering. It's clear that their strategy is simply not working, and change at the top is needed.
Originally Posted by E63AMG :
4 services a week in a highly competitive HKG market will not make money or be seen as a credible option with business travellers.
The significant change after connecting to hkg is that VA will be integrated into hna's network. Hna has been running 8 flight from Australia to destinations in China : (Mel + Syd) x (Xi'an+Changsha) x 2. The hkg route can then connect VA to hna's international and intercontinental routes based at hkg. The integration will make the access to ne Asia market feasible -- Singapore is too far and sq has too few destinations in this region. Actually, this will be the first time when an Australia based airline can go deep into China because China doesn't have a Oneworld member.
Member since 20 May 2015
Total posts 109
Virgin's results are rather sad; they're a good airline and competition is healthy for the aviation market. I honestly don't know how Virgin can 'fix' themselves but I do think an obvious problem they have, and even they recognize having it, is that they have an excessively complicated fleet.
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What's your take on today's Virgin Australia results and announcements?
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