Sabre bites into Virgin profit outlook.

[markis10]

Things are not going according to plan, no surprise to many AFFers:

http://www.asx.com.au/asxpdf/20130515/pdf/42fxcmnhkwz9k0.pdf

A profit downgrade is still a profit, which is a ray of sunlight in the current conditions.

 

[Deleted member 29185]

Things are not going according to plan, no surprise to many AFFers:

There are some interesting statements in there.

Lower pax, higher yield.......From what I've seen, J is now only busy because of "nice" point redemptions. It certainly wasn't a few months ago. The higher yield IME would be more from the continual escalation of "budget" fares and operational savings (like from the ATRs).

Focus remains on higher yields with strong cost controls in place.........is that code for expect to pay more for less?

Suggesting the international partnerships are "seamless' is possibly a bit optimistic.

They want to further push into the "budget" travel sector :shock:. I'm assuming this has to refer to TT as DJ was well and truly within the budget sector and they pushed away from it and I doubt they can return there whilst simultaneously forcasting yield increases.

All in all, good to see they are still optimistic about the future. Now they just have to fix the Sabre interaction!

 

[Jama]

Here is another article.

Virgin revenue rattled by Sabre system - Finance - Business - News - iTnews.com.au

 

[notzac]

Given how poorly their website functions -- not exactly surprising.

 

[docjames]

I guess as always it's how you read the numbers.

Certainly they reflect a brutal marketplace, but given the lower LFs, the yield is certainly improving, so if the market grows that bodes well.


As we all know the saying however, the easy way to make a small fortune........ etc

 

[moa999]

I can't see how they are increasing yields (apart from getting more connecting passengers from foreign airlines) when they are basically not selling business class.

 

[markis10]

I can't see how they are increasing yields (apart from getting more connecting passengers from foreign airlines) when they are basically not selling business class.

Yield is more than just business class, its lower cost ops, AKA more ATRs along with increased ops into non price sensitive ports AKA FIFO.

 

[Fruitcake]

I can't see how they are increasing yields (apart from getting more connecting passengers from foreign airlines) when they are basically not selling business class.

The base economy fares certainly aren't what they used to be, and there are a lot more people buying flexi fares than ever used to buy full Y fares.

 

[toowongman]

I can't see how they are increasing yields (apart from getting more connecting passengers from foreign airlines) when they are basically not selling business class.

Food? Was starving leaving MCY last month, we blew $45-something on the cart.

 

[smit0847]

Virgin have never admitted anything about the Sabre transition not being 100% perfect so I thought it has gone perfectly.

 

[lovestotravel]

To be honest, this is far from surprising..

The initial shine of the new paint, uniforms and business class rollout is wearing off! Add to that the Sabre rollout which is still a joke

Shares down 8 cents today or 18%.......

I have got a buy order in though......

 

[DaveB]

The surprise for me is they will still make a profit given the Sabre problems.
IT is such a double edged sword. Ansett had a sales call network drop out rate of 12% leading up to their demise. Nicely swept under under the carpet as they had axed 10% of their call staff to pay for the cost of a new IT system to that would supposedly improve call centre efficiencies.

 

[gwilli1]

Good to see VA International growing with bums on seats. I personally think they have a very good product and hopefully it will encourage some form of expansion in the future.

 

[lovestotravel]

VA International has a great product sure, on the 777's and A330's.....

 

[MH_fan]

I wonder if the A332s will ever be used for international flights. They are already configured to do so.

 

[lovestotravel]

I wonder if the A332s will ever be used for international flights. They are already configured to do so.

One would think so!