Virgin Australia - Velocity Rewards
Member since 24 Aug 2011
Total posts 384
Originally Posted by nix584
Originally Posted by dm12
I don't know what Virgin will look like now, but if it was up to me I would get a right-size strategy. Stop trying to be teenage Qantas and find their own market niche and value proposition. Don't go head-head with Qantas unless a profit can be turned (i.e don't chase them to Haneda because they went there), and if they do try and make it a unique offering.
1. Keep the 777's and fly to LAX and/or SFO from BNE and/or MEL. The route is profit making (I believe) and they own the jets so work them. Don't bother going head-head with QF out of SYD as well, they need a different approach.
2. Join Star Alliance and use them for most international connections. Use United over LAX/SFO to access north america. Air NZ can handle New Zealand for now, but for the unique routes like BNE-Dunedin, maybe try CBR-AKL to access a new market. Singapore/Thai/ANA for Asia and Euro connections.
3. If there's spare 777's then back to HKG. Star Alliance airlines (Air China/Shenzhen) for connections into China. Abandoning HKG was a bit short-sighted but not surprising given the financial pressures. If they can turn a profit on that route, and its a popular route needing a none-OneWorld carrier, then they should run it. They could make HKG into a Star alliance hub with connections on Egyptair, Lufthansa, SAS, Swiss and Turkish.
4. If they're still a Virgin brand (or even if they're not) connect with Virgin Atlantic at HKG/SFO/LAX for London flights, and SFO for Manchester (assuming VS is still around and flies there)
1. bye-bye A330's. Its a shame but they're leased and financially they have to go. They can bring back domestic wide-bodies in the future if warranted.
2. leased 737's back to the lessor, fleet size down to the 40 or so that they own. Sure they'll have a reduced network and frequency, but they should concentrate where they can make money and on city pairs not served by QF.
3. Do a JetBlue and come up with a top notch busi product for some 737's and put them on the transcon, longer haul and red-eye routes. Maybe some extra leg room economy seats too.
4. Regional - its a mess. They've scuttled the original regionals (Skywest etc) and spread them too thin across the country. Concentrate on QLD and WA i reckon. How are there only 8 ATR-72's left?!
Joining (or initially, being invited into) an alliance may come down to the new investors and/or owners. Wouldn't be surprised to see Virgin Group increase it's stake.
We imagine the new airline will most likely focus on slowly gearing up using the golden triangle and other profitable routes with a single aircraft type (737-series) - and not as an LCC. Then grow slowly if the market and business allows. International with 737 could return if it's ok to fly to NZ (etc) and there's a business case for it.
Member since 08 Feb 2018
Total posts 185
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