Former Qantas executive John Borghetti wins top job at Virgin Blue

[harvyk]

I'll throw my prediction in on this one (I was scary accurate with my QF TT prediction).

1. DJ will change their name to V Australia, dropping the virgin blue name as that's associated with the LCC.

2. DJ will introduce a J class on domestic and TT flights, maybe keep PE at the same time bringing in 3 class dom services again.

3. DJ will start providing meals over standard meal hours on flights over a certain length (same as QF)

4. DJ will bring in wide bodies for the routes of SYD - MEL - PER (maybe BNE?) they will probably include in seat power.

5. DJ will start providing Live 2 Air for free.

These won't happen all at once, and I doubt this will happen in this order, but I expect DJ will be a very different airline in a few years time. DJ want to compete with QF as that's where the money is, not TT and JQ.

 

[777]

OK, I will have a crack at this.

1. DJ will change their name to V Australia, dropping the virgin blue name as that's associated with the LCC.

This has been widely rumoured and i reckon it's likely. I certainly see the VA branding spreading across the network as a "full service" brand. I expect that they will sell tickets under that name on domestic and TT flights with extra services including legroom, in flight food etc.

2. DJ will introduce a J class on domestic and TT flights, maybe keep PE at the same time bringing in 3 class dom services again.

Seems convoluted. I wouldn't rule it out but i think if business comes in P/E will probably go. I think they are more likely to introduce full service economy, than business, PE, FSE, LCC in the one plane.

3. DJ will start providing meals over standard meal hours on flights over a certain length (same as QF)

I reckon they will do this via their "front of the plane" full economy concept. May be a tarted up version of the current service. I'm pretty sure they don't have the galleys on board for full hot meals - can anyone confirm that?

4. DJ will bring in wide bodies for the routes of SYD - MEL - PER (maybe BNE?) they will probably include in seat power.

Not convinced. I reckon they will include quite a few 737-900ERs in their upcoming order but i can't see them introducing a new fleet type. I'd bet that the new planes will include in seat power for at least some of the seats, wi-fi connectivity (see below) and advanced IFE that may or may not be new live to air. Would make Qantas look pretty ordinary by comparison (although i think LTA is infinitely better than QF IFE already).

Look to Virgin America for a very good model of a premium narrowbody configuration and what is possible.

5. DJ will start providing Live 2 Air for free.

I doubt it for the simple reason that the economics don't work that way. I'm sure the whole thing is based on PPV and they would be paying foxtel and austar a small fortune if they wanted to show it to everyone. Perhaps in the premium seats (is already free in P/E) but not for the whole plane.

Other predictions:

* Enhanced FF services - they have talked about this for a long time and been waiting for the computer systems to catch up to it. Maybe it's just wishful thinking but i'm hoping to get much more out of my Gold membership. The development in this area has been huge in the last 12 months and i'm sure more is coming.

* WiFi - it's a no brainer. Surely there is a great first mover advantage for the business traveller here. DJ have a large new fleet coming soon. I'd be shocked if they don't do it.

* International lounges - Surely VA, Pacific Blue, Delta and Virgin Atlantic (the current international partners) will move towards their own international lounges at SYD, BNE, MEL at least?

777.

 

[jsd]

Re: New Virgin Blue CEO announced today?

Weird how things turn out:

Virgin Blue: 'budget airline' run by a 'full service airline' manager

They get upset when you call them that, DJ call themselves 'New World Carrier'

I think budget airline more describes the likes of TT and JQ


Would love to see how this turns out, would love to see some more QF like perks come to DJ, he should know what the people want



Josh

 

[notzac]

The question begs asking with all this speculation - are any of you QF-only-thanks folk going to switch alleigance and start flying DJ/VA if any or all of the above comes true ... or are you all just secretly hoping it encourages QF to improve service and drop fares?

As for myself, if DJ/VA can fix the problems with Velocity re. status earn and privs on other carriers (and the last 6 months are a v encouraging start), I'm prepared to lose my Virgin-ity (hyuk hyuk)..

 

[QF WP]

Now that I am Lifetime Silver and approaching (slowly) Gold, I am open to entertaining the thought of flying DJ, but the dilution of benefits and loss of initial membership status would be two points that will make me think long and hard.

Brett certainly was interested in my thoughts at the beginning of the Velocity program what it would take to have people like us switch allegiences from QF to DJ - so I put together a select posse of QF Platinum members and we had a meeting with him and crazydave98.

They certainly have come a long way from the beginning.

 

[docjames]

I will switch when the product is consistently as good in term of status, in-flight, ground, codeshare/alliances etc meaning global coverage etc

In fact, to switch it will probably have to be better unless there's a status match.

 

[777]

I will switch when the product is consistently as good in term of status, in-flight, ground, codeshare/alliancesetc meaning global coverage etc

I'll think about switching back when QF offer any of the above on my fortnightly commute from MEL-NTL.

Sure Qantas might have a network that reaches to Nairobi or something ridiculous but by abandoning their domestic network to JQ they are actually offering very little for a lot of people at home.

777.

 

[openseat]

Given Mr Borghetti's networking abilities, a tie up with Delta in SkyTeam could be high on the list - especially if they are going down the path of abandoning the Virgin name in favour of V-Australia.

 

[dajop]

The question begs asking with all this speculation - are any of you QF-only-thanks folk going to switch alleigance and start flying DJ/VA if any or all of the above comes true ... or are you all just secretly hoping it encourages QF to improve service and drop fares?

I think membership of either skyteam or star alliance OR broader mutual status recognition with individual airlines (styled along the relationship with DL) would be important to encourage switching of allegiances. And a facade of priorty baggage domestically to match QF's facade - it wouldn't cost that much to add a few priority tags to a few bags to give the impression they are being handled with priority.

 

[harvyk]

Given Mr Borghetti's networking abilities, a tie up with Delta in SkyTeam could be high on the list - especially if they are going down the path of abandoning the Virgin name in favour of V-Australia.

Well dumping the virgin name would mean that they could use a consistent brand across all their fleet, not run the airline under 4 different brands.

 

[anat0l]

The question begs asking with all this speculation - are any of you QF-only-thanks folk going to switch alleigance and start flying DJ/VA if any or all of the above comes true ... or are you all just secretly hoping it encourages QF to improve service and drop fares?

A bit of both, really, though I'm not holding my breath on QF dropping their fares. I'm holding my breath that QF do not drop more routes / de-First more routes / Jetstar-ise routes:!:

At the moment, DJ doesn't offer enough international benefits for me and having gotten used to status and alliances DJ doesn't yet offer a rewards program that will offer a similar amount of benefits that I enjoy with QF. Also, there is no way to run DJ Gold so it looks like I will never get top tier status with DJ (bar a status match) - sad evaluation of the situation, but so be it (just as *A Silver will get you almost squat all across the alliance, so you better think more about *A Gold).

DJ redemption rates on their partners also suck. I quoted up MH and EK rewards with DJ (I had to call them to enable this). When they got back to me via email, if they were right there I'd tell them to go jump in the lake. OK, these were premium rewards (the Y awards aren't all that bad), but still - not good; even MH has a worse MR conversion ratio than DJ plus their awards are insidious to book. For those of you thinking of flying on VS with your Amex MR points, it's better to use your own Flying Club account to redeem those awards than through DJ (both DJ and VS get a 1:1 conversion from MR. Luckily DJ has not considered compulsory direct sweeping like QF have.) Domestic awards on DJ are fine (and in considerable cases better than QF, but every savvy QFFer knows that blowing points on domestic awards is usually a bad idea).

But the main thing for me is international and alliance benefits. (If DJ joined an alliance, I could try for elite status on another member at least so I can get some benefits on DJ ).

 

[kamchatsky]

I think membership of either skyteam or star alliance OR broader mutual status recognition with individual airlines (styled along the relationship with DL) would be important to encourage switching of allegiances. And a facade of priorty baggage domestically to match QF's facade - it wouldn't cost that much to add a few priority tags to a few bags to give the impression they are being handled with priority.

But how much it would cost Virgin to join *A or ST? Also there will be costs associated with upgrading all the IT systems. Not sure if current VB infrastructure supports it. Of course a lot of us would love if VB goes to *A but not sure how much extra profit VB get for having alliance given the upfront costs incurred. My guess is that ST is more likely given that it operates in NZ as well and NZ already dominates NZ and Pacific islands from *A point of view. VB can really own south pacific in ST.

 

[ozbeachbabe]

Wonder if Bratt decides to keep his zillions of shares or will he cash them in? Would be very surprised if DJ shares didn’t increase with JB now at the helm, but it just depends if Bratt’s ego will allow him to hang on to them.

markis10

I wonder if DJ was a better option than watching the reach of QF decline as JQ took the reigns?

After being handed what amounts to a cough sandwich when overlooked for the top job at QF, having no job would have been better option than to hang around & watch the leprechaun turn QF into a Ryan Air. Not sure what he’s been doing in the meantime but it takes a lot of guts to leave possibly the only company he’s even worked for given that he started when he was 18.

I think one of the reasons JB will be successful is that he’s had experience at the ‘coalface’ and ideally knows what travellers (including a lot of us here at AFF) want in the Australian market. Too many management types automatically adopt ideas and concepts that work well in other countries (open seating anyone aka the death knell for any LCC) and arrogantly assume that it’ll be a hit in Oz which of course it’s not.

Harvyk

DJ will introduce a J class on domestic and TT flights, maybe keep PE at the same time bringing in 3 class dom services again.

In the US (Virgin America) VX offers First Class, Main Cabin Select & Economy so would not surprise me if DJ offered Business Class (at PE prices), maybe some equivalent to Main Cabin Select incorporating Blue Zone inclusions then the usual discounted fares.

IMHO DJ’s PE is a waste of money they’d get more revenue by offering J for PE cost.

DJ will start providing Live 2 Air for free.

Would not surprise me at all. I found the aircraft and facilities offered on VX Airbus A319’s within the US to be far superior to any other US airline, however the flight attendants were average same as in Oz. VX were offering free wi-fi inflight during November with GoGo (part of Google).

Again IMHO in the USA DL & CO f/a’s were the best & in Oz QF f/a’s are better than DJ but like I said that’s my opinion only & I respect the opinion of other AFFers to the contrary.

Interesting times ahead indeed.

Oz

 

[trippin_the_rift]

I'm sure John still has strong ties with the current QF board.

Do his share options or DJ pay more dividends.....

If QF were to get a mole inside DJ, you know.......say the CEO.... it could be an easy way to eliminate a competitor.

........ just saying....

 

[anat0l]

If QF were to get a mole inside DJ, you know.......say the CEO.... it could be an easy way to eliminate a competitor.

........ just saying....

LOL :mrgreen:

I shouldn't be laughing though - that's highly unethical.....

 

[Must...Fly!]

LOL :mrgreen:

I shouldn't be laughing though - that's highly unethical.....

unethical yes...illegal...?

 

[ozbeachbabe]

TTR

I'm sure John still has strong ties with the current QF board.

If the ties were that strong between JB & the QF Board would he not be the CEO of QF instead of the other clown?

Do his share options or DJ pay more dividends.....

$64,000 question. Given that he had 36 years with QF my money would be on the QF share options.

If QF were to get a mole inside DJ, you know.......say the CEO.... it could be an easy way to eliminate a competitor.

Nah - JB's nobody's mole & he's got far too much credibility to do that. Maybe he's too much of a nice guy which is why he didn't get the QF job. I can't believe anyone would do a favour for the very company that just publicly snubbed them.

Besides QF don't need a mole to find things out about competitors - they have other ways and means.

 

[tuppaware]

But how much it would cost Virgin to join *A or ST? Also there will be costs associated with upgrading all the IT systems. Not sure if current VB infrastructure supports it. .

They use the same amadeus system as everyone else, a lot of there IT needs are contracted out (like qantas). In any case changes would take a long time - unless business demanded it - like another GFC.

 

[ozbeachbabe]

Tuppaware

They use the same amadeus system as everyone else, a lot of there IT needs are contracted out (like qantas). In any case changes would take a long time - unless business demanded it - like another GFC.

AFAIK DJ still use the Navitaire system - same as JQ and like their counterpart, flights cannot be booked via a GDS' such as Amadeus, Galileo, Sabre etc.

Whilst this saves on distribution costs as they are not paying segment rebates (to the GDS') everytime a flight is booked via that portal, it does limit bookings on DJ to via the web only.

 

[notzac]

IIRC, VA use Amadeus - so I'd hazard a guess that it would be no big stretch to move everything in to Amadeus, especially if they were going to rebrand everything to V Australia anyway.