Three ways Virgin Australia intends to win against Air New Zealand
By David Flynn, April 17 2018
TALKING POINT | The messy break-up between Virgin Australia and Air New Zealand is not reading from the familiar script. None of this "we have come to a mutual decision, we still love each other and will always respect one another" stuff.
Instead, the airlines have gone from partners to pugilists and are now fighting not for custody of the children but for trans-Tasman travellers – especially business and premium leisure flyers.
Gone are the shared flights and lounges, along with coordination on schedules and pricing in an effort to paint common foe Qantas into a corner – albeit a big corner which represented almost 50% of the market.
Now each airline is free to go its own way, do its own thing and give its competitors a bloody nose in the process.
Beyond the usual competitive plays such as sharper pricing, here are three weapons with which Virgin Australia aims to win the trans-Tasman turf war against its onetime Kiwi paramour.
1. Business class on every flight
Every one of Virgin's trans-Tasman flights runs on a Boeing 737-800 jet fitted with business class. It's the same business class as the domestic Boeing 737s – eight wide recliners...
... but this offers greater consistency than Air New Zealand's mixed fleet, where some flights feature a Boeing 787 or Boeing 777 with a fully-flat business class...
... while flights on the Airbus A320 jets have economy seating from tip to tail, topping out with a 'Euro-business' premium option with extra legroom and an empty middle seat as its 'The Works' option.
2. Velocity points and status credits
This has always been one of the biggest advantages of the Virgin Australia partnership with Air New Zealand: the ability to earn frequent flyer points and status credits in Virgin's Velocity program when you're actually flying on an AirNZ jet.
Velocity earning is going to continue to be a drawcard for booking flights directly with Virgin after the split.
AirNZ's Airpoints scheme isn't highly regarded even by native New Zealanders, whose membership is more a matter of Stockholm Syndrome than anything else.
3. Inflight WiFi
As Virgin Australia continues to outfit its Boeing 737-800 fleet with inflight Internet, its WiFi rollout will also extend to New Zealand routes.
Air New Zealand is also planning WiFi for its new Airbus A321neo jets, but the size and ubiquity of Virgin's existing Boeing 737 fleet gives a headstart.
Virgin hasn't yet revealed when WiFi will stretch across the pond or how much it will charge.
Of course, none of this guarantees a victory for Virgin Australia (even if Virgin dares describe what such a victory looks like), and Air New Zealand has several strong cards in its own hand – including international-grade business class and premium economy on some flights, a strong regional network within New Zealand and a consistent network of quality lounges.
And there's always the risk that as Virgin Australia's trans-Tasman travellers rethink their plans, Qantas could pick up many new or once-strayed passengers.
Which airline is going to be your choice for future trans-Tasman flights, and why?
David Flynn is the Editor-in-Chief of Executive Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.
Qantas - QFF Platinum
20 Mar 2012
Total posts 211
QF would have to be in the box seat given the network, strength of FF and improved product offering with A330’s ex Syd and Mel.
30 Aug 2017
Total posts 32
A330s flights are generally slower than B777, let alone B789 flights. I noticed this a couple of times in both directions between SYD and AKL. It led me to analyse some flight tracking data of QF143 (A332) vs NZ104 (B772/B77W). It proves to me NZ104 is more than 20 minutes (as an average) shorter in last three weeks. Have a look at flightaware.com or flightradar.com...
06 Dec 2017
Total posts 110
VA for me if I go again.aircraft size on the sectors means nothing to me these days as I only fly Economy anyway.The only way you will get QF on a wide body across the TASMAN IS GETTING A FLIGHT ON A LATAM 787 CODESHARE or booking onto a flight operated by a 330.
07 Oct 2012
Total posts 1251
Yes you are correct, the only way you will get QF on a widebody, is by flying a widebody.
Qantas - Qantas Frequent Flyer
09 May 2011
Total posts 362
QF operate A330s from Brisbane, Sydney and Melbourne to Auckland.
Delta Air Lines - SkyMiles
16 Oct 2017
Total posts 158
The QF 332 flights only go to AKL. Bad luck if you're going/coming anywhere to/from the rest of NZ. Same deal for NZ 772/773: AKL only. You get to connect other ports in NZ or JQ economy, up to 2 hours for say ZQN. I'm no great fan of the QF and VA recliners in J on the 738's, but at least you get a direct flight, decent legroom and a seat wide enough for some comfort. I'll stick with that until NZ gets the message about catering for premium customers outside AKL. BTW: I dislike the "coffin class" J on the NZ 772/773 anyway, even for trans-Tasman.
Air New Zealand - Airpoints
21 Jan 2016
Total posts 195
I agree with you in regards to the 'coffins' in J on Air NZ 777/787s.
Whilst most business travelers from both sides of the ditch don't like them, leisure travelers according to Air NZ, like them. Air NZ has said, most of the travelers in J are leisure and the company is not actively promoting the Business Premier product to business travelers but providing an 'enhance premium' travel experience. Its up to individual how to interrupt what Air NZ means.
To me, Business Premier is Premium Economy with a lay flat bed.
Delta Air Lines - SkyMiles
16 Oct 2017
Total posts 158
Just to clarify: I do understand that wide body aircraft cannot get into places like ZQN, but they certainly can in WLG and CHC.
Air New Zealand - Airpoints
12 Jul 2016
Total posts 27
Virgin business class trans tasman is woeful, Air NZ any day
10 Apr 2018
Total posts 5
The AirNZ website is now bringing up Qantas flights for the OZ domestic legs. So you have to book Virgin flight separately. I hope Virgin have a status match lined up in this custody battle.
Qantas - Qantas Frequent Flyer
23 Oct 2013
Total posts 702
I think you'll find this way always the case.
Emirates Airlines - Skywards
30 Nov 2015
Total posts 730
Melbourne Queenstown Business is a winner.
Qantas - Qantas Frequent Flyer
25 May 2017
Total posts 79
Whilst QF retain the A330 they are the clear winner. Winner a superior J product and 2 x 4 x 2 in Y class they will be the winner. One day when they update the lounges in NZ this will be yet another leap over VA. Until VA introduce a better J class product and do something with the lounges (the domestic ones are like a school canteen) QF will win all the time.
Air New Zealand - Airpoints
21 Jan 2016
Total posts 195
Hi David - Could you please clarify what you meant - "AirNZ's Airpoints scheme isn't highly regarded even by native New Zealanders, whose membership is more a matter of Stockholm Syndrome than anything else."
I prefer to have a '1AP = NZ$1' earn type FF as oppose to the current points schemes that is offered by QF and VA FF schemes.
Virgin Australia - Velocity Rewards
14 Mar 2017
Total posts 152
The redemption rates are poor. Possibly the worst in the Star Alliance stable and way below VA.
Qantas - Qantas Frequent Flyer
23 Oct 2013
Total posts 702
Each to their own but as others have mentioned the redemption rates are poor.
Virgin Australia - Velocity Rewards
01 Mar 2012
Total posts 177
Thanks Henrus, I’m agnostic when it comes to reward flights, as I don’t use them much.
Delta Air Lines - SkyMiles
16 Oct 2017
Total posts 158
Will VA continue to put J pax and tier Velocity into NZ lounges? Sounds like they don't want to: but if not, where? Wonder when we'll hear?
Virgin Australia - Velocity Rewards
13 Dec 2012
Total posts 53
Key strategy to be explained is lounge access on both sides.
19 Jan 2018
Total posts 87
One thing missing from this list: access to quality lounges in Australia, and access to any lounge across the ditch.
Qantas - Qantas Frequent Flyer
19 Jan 2018
Total posts 91
As people who follow my comments on this website well know, I am no fan of VA.
31 May 2017
Total posts 4
QF A330 double daily to SYD and MEL and daily to BNE ex AKL are the best Tasman product in operation hands down.
Qantas - Qantas Frequent Flyer
06 Nov 2014
Total posts 357
I would argue that CI's A350 is better.
Delta Air Lines - SkyMiles
16 Oct 2017
Total posts 158
I even quite liked CI a333: preferred to any of VA, QF or NZ. in J.
Virgin Australia - Velocity Rewards
14 Mar 2017
Total posts 152
LATAMs 787 business, despite being 2-2-2, is, IMHO, better on that short leg than a QF A330.
07 Oct 2012
Total posts 1251
Not the greatest departure time from AKL if I recall correctly
25 Sep 2013
Total posts 1245
But not too bad in the SYD-AKL direction.
Qantas - Qantas Frequent Flyer
19 Jan 2018
Total posts 91
I don't agree with this statement at all. To the extent that the QF A330s do not have the updated interior and J seat, I would accept that the hard product on the LATAM 789 is superior. It is, however, worse on every other measure, whether it be service (woeful on LATAM) or food.
Qantas - Qantas Frequent Flyer
23 Sep 2017
Total posts 163
It sounds like Kramer versus Kramer. They’ll need Child Protection Services and Family Law Court to settle the pathetic asset mix!
Virgin Australia - Velocity Rewards
07 Dec 2014
Total posts 173
Worth noting that VA's Pacific Island flights from Auckland already use the Strata contract lounge rather than the NZ Koru lounge.
Qantas - Qantas Frequent Flyer
19 Nov 2011
Total posts 243
It's great to see market shake ups. Forces the players to up their game and not stay content!
Virgin Australia - Velocity Rewards
30 Jul 2015
Total posts 15
ANZ airpoints is the worst loyalty programme I think any airline offers so va any day , also great that VA are uping the game with improved food options etc.
Qantas - Qantas Frequent Flyer
19 Jan 2018
Total posts 91
Mitch, on what basis do you say that VA is "...uping (sic) the game with improved food options..."?
Virgin Australia - Velocity Rewards
13 Apr 2018
Total posts 5
A little birdy told me that VA is looking to build a domestic network in NZ - I would assume this would only be to the larger ports but if they can replicate what they have built in AU they will have a solid offering - Still, I will miss the good status earn on ANZ regional flights..
23 Oct 2014
Total posts 233
@Mitchd31 your correct, the onboard food has improved immensely over the last 3 months. Flew SYD-BNE a few days ago and the food suited the 1hr late afternoon flight perfectly.
Qantas - Qantas Frequent Flyer
23 Aug 2013
Total posts 4
I used to book and enjoy Emirates A380 service Melb-Auk on a Q ticket
Hi Guest, join in the discussion on Three ways Virgin Australia intends to win against Air New Zealand