Virgin Blue - changes ahead

[Globetrotter]

Re: Virgin Blue - [more] changes ahead

They will only be known as V Australia (Virgin/PAC Blue to go). Its a [corporate] image thing I was told.

Anything else you want to know?

 

[gilby08]

Re: Virgin Blue - [more] changes ahead

.

Anything else you want to know?

Is it actually true and please link us!

 

[docjames]

Re: Virgin Blue - [more] changes ahead

They will only be known as V Australia (Virgin/PAC Blue to go). Its a [corporate] image thing I was told.

Anything else you want to know?

Um, some more info would be helpful.....

 

[SeaWolf]

Re: Virgin Blue - [more] changes ahead

Um, some more info would be helpful.....

My best friend's sister's boyfriend's brother's girlfriend heard from this guy who knows this kid who's going with the girl who saw Virgin Blue pass out at 31 Flavors last night. I guess it's pretty serious. :mrgreen:

 

[MrGreg]

I doubt this rumour is true. It would be far to difficult for SQ to aquire a majority unless branson gives up his percentage. Although, it would be nice to see that vba share price rise more.

 

[Globetrotter]

I heard the news from a Virgin Blue employee. That's all I know. It was worth sharing. Get ready for DJ to have a makeover!

 

[medhead]

I heard the news from a Virgin Blue employee. That's all I know. It was worth sharing. Get ready for DJ to have a makeover!

Was this employee any of the CEO, CFO, Assistant to CEO or CFO, or a member of the board, or assistant to the board?

 

[ozbeachbabe]

Was this employee any of the CEO, CFO, Assistant to CEO or CFO, or a member of the board, or assistant to the board?

Best souce of gossip on what's happening with airlines are aviation refuellers and cleaners.

Refuellers always know when an airline's on shakey ground as the particular airline is on a cash only basis for fuel.

Many key decisions are made late in the day after the majority of employees have gone home and only senior management are left to discuss announcements, hirings & firings etc. I'm sure things get out because someone comes in to an office to empty the rubbish bin & thinks "oh, it's only the cleaners".....

I've heard plenty of stuff from cleaners that's proved to be correct at a later date months before it's been announced by management.

 

[samh004]

We could just wait for CrazyDave to weigh in

 

[djfuzz]

A branding change would be nice, seems no reason not to since they are the same company and it neatly avoids the naming issue for SQ - though I would have thought if SQ were the ones acquiring control, they would probably not care about using the Virgin name? Then again, "V Australia" is now an established brand, would be silly to use "Virgin Australia" or "Virgin Blue" internationally.

On the other hand, V Australia is pretty much a full service carrier along the lines of Virgin Atlantic - not sure if a simple name change for DJ would be sufficient given the marked difference in service between the two. So some change in the DJ service level would be quite welcome!

 

[Mal]

So some change in the DJ service level would be quite welcome!

Well DJ is apparently investigating having 3 (yes 3!) classes of service on domestic routes... Presumably Premium Economy, Economy Flex and Economy or something similar.

http://www.etravelblackboard.com/showarticle.asp?nav=2&id=101488

 

[777]

The SQ rumour is new. But rumour of a major branding, product, etc overhaul have been circulating for quite a while . I'm not sure what is and isn't true but the expecation is that a major announcement is in the works.

 

[harvyk]

I think a rebranding may be on the cards. DJ want to compete with QF for the corp dollar. They effectively want to be Ansett Mk 3. (without the corp crash which Mk 1 \ Mk 2 went through).

The "Virgin Blue" brand will always be linked to cheap, as that was their position in 2000 when it was first launched as there was no way they could compete with QF \ AN. Now that AN is out of the pic, and they are competing with TT \ JQ for the cheap space.

I personally see them moving towards a full service airline (with a J class), and I expect it will be using the V Australia brand, as that does not have the connotations of "cheap" attached to it.

They are already walking away from the LCC model by offering a lounge, different classes of service, multiple a\c types, included food and drink (in certain classes).

Whilst they will continue to compete on price I doubt that will be the only driving force for them.

Just my predictions...

 

[Globetrotter]

I personally see them moving towards a full service airline (with a J class), and I expect it will be using the V Australia brand, as that does not have the connotations of "cheap" attached to it.

I was also told DJ are trialling a new J class seat for domestic flights

 

[N860CR]

I'm at a bit of a loss to pinpoint exactly what makes DJ a LCC these days.

For instance, I'm flying ROK-BNE-SYD on DJ this week. I've picked up on the following very "un-lcc" traits:

1. I will checkin in ROK through to SYD on an assured connection
2. As a Velocity Gold member, I will have access to priority checkin
3. As a Velocity Gold member, I have free checked luggage (non-status pax will have to pay, ala AA/US/UA etc)
4. Onboard the aircraft, I will have to purchase refreshments (ala AA/US/UA etc)
5. Alcohol is for purchase (as it is a Saturday, ala QF)
6. On arrival in BNE, I will have access to The Lounge including an open bar
7. Should something go wrong with my connection, DJ are responsible

Now every other week I fly QF on this route, however the only difference I can pick up on is that I won't get my "cup of cheese and 3 olives" on QFlink and I won't get my 2 biscuits on QF. Does that alone make QF "full-service" and DJ "low cost"?

 

[anat0l]

Does that alone make QF "full-service" and DJ "low cost"?

Well it doesn't, but what you are showing is that the lines between a full and low cost carrier are being blurred quite a bit.

DJ is also interestingly different in that it does operate a loyalty program, operates a lounge network, offers a premium cabin service and allows through-check / connecting itineraries (cf. strict point-to-point only), all of which are fairly uncharacteristic of the textbook LCC. That is why there are many that believe DJ is really no longer a LCC.

There aren't too many LCCs in the world with the same product offerings that DJ has. In fact, I'm at a loss to name one.

 

[harvyk]

Well it doesn't, but what you are showing is that the lines between a full and low cost carrier are being blurred quite a bit.

No, what is being shown is that DJ no longer want to be a LCC, they want to be a full service airline and go after the corp dollars...

When DJ first started, there was no way they could break into the QF \ AN market, as both QF \ AN already had the market place stiched up. AN then went into administration leaving QF and DJ became the two players, which worked well, QF had the premium pax, DJ had the low cost pax. Then QF introduced JQ and TT have now entered the low cost market. DJ realised that they can never match the TT fares and yet go for the corp dollar, thus they decided to go against QF as there is a lot of love for QF, but there is also a lot of hate.

 

[serfty]

There has been reference to DJ taking the form of a "New Age/World Carrier" in recent years.

 

[anat0l]

No, what is being shown is that DJ no longer want to be a LCC, they want to be a full service airline and go after the corp dollars...

When DJ first started, there was no way they could break into the QF \ AN market, as both QF \ AN already had the market place stiched up. AN then went into administration leaving QF and DJ became the two players, which worked well, QF had the premium pax, DJ had the low cost pax. Then QF introduced JQ and TT have now entered the low cost market. DJ realised that they can never match the TT fares and yet go for the corp dollar, thus they decided to go against QF as there is a lot of love for QF, but there is also a lot of hate.

A good point that the situation of DJ is being driven well by market forces, but let's also keep in mind that there are full cost carriers that are being driven to subtly LCC style practices.

It's probably more apparent in the US (e.g. AA, UA) who charge for onboard snacks and luggage, but even say BD charge for onboard meals, and there are quite a few airlines that do not offer free bar at all times of the day, every day.

Also what constitutes a meal or refreshment as opposed to nothing at all is becoming a hot topic.

 

[djfuzz]

Well it doesn't, but what you are showing is that the lines between a full and low cost carrier are being blurred quite a bit.

DJ is also interestingly different in that it does operate a loyalty program, operates a lounge network, offers a premium cabin service and allows through-check / connecting itineraries (cf. strict point-to-point only), all of which are fairly uncharacteristic of the textbook LCC. That is why there are many that believe DJ is really no longer a LCC.

There aren't too many LCCs in the world with the same product offerings that DJ has. In fact, I'm at a loss to name one.

Bangkok Air?

• Flyerbonus loyalty program
• Premium cabin
• Complimentary access to Economy and Business lounges
• Premium cabin service - complimentary food/drink served on all flights (though no alcohol)
• Through check (not sure on PG to PG, but I was able to check through from CX to PG so I imagine it could be possible)

Having said all that, maybe DJ and PG are actually full service carriers with aggressive web / sale fares (and perhaps QF also falls into that category).