Borghetti's progress: so far, so good

[tuapekastar]

Interesting times ahead. VA has come a long way, but there is still a way to go.

Borghetti's progress: so far, so good | The Age

UNLIKE most of his corporate peers, John Borghetti stayed home in Sydney over the Christmas holidays.

Virgin Australia's chief executive prefers to be around to keep a close watch over the airline as it makes a major overhaul of its booking and check-in system this weekend.

 

[cove]

Whether Virgin can start making profits consistently is very much up in the air. Lots of structural moves have to get bedded down and that all tends to be quite expensive.
Changing over the bookings system is a hold your breath moment that runs for several days and should be a great move if it is successful.

 

[markis10]

Whether Virgin can start making profits consistently is very much up in the air. Lots of structural moves have to get bedded down and that all tends to be quite expensive.
Changing over the bookings system is a hold your breath moment that runs for several days and should be a great move if it is successful.

I think most people will be surprised at how much the ATRs are adding to the bottom line with such a low break even point yet high fares.

 

[docjames]

To stay profitable whilst making all these changes is a pretty good effort so far.....

 

[smit0847]

IMO, as a customer (not as a shareholder or staff member)

Biggest wins:
- Status match (an absolute master-stroke)
- low qual/re-qual levels for Status
- the ever growing list of relevant benefits of Velocity (family pooling, parental pause, SCs on reward seats etc, PB that actually works)
- keeping the staff culture young, fresh and energetic (though the CSMs get older and more unattractive with every flight I take)

Biggest fails:
- removing IFE without replacing it with an alternative, especially on intl short haul.
- the 737-700 no-J fiasco
- refusal to seriously consider entering an alliance - the virtual alliance is confusing, although I would prefer the current system to SkyTeam (no-one wants to fly them).

 

[TonyHancock]

The introduction of earning ASA's was a positive move. Domestically I definitely prefer DJ.

It is the international side that is not so good. The lack of a VA route to the UK, and no global alliance membership is a stumbling block for me. I have said it before many times but I need certainty and the haphazard arrangements with international partners doesn't give it to me.

It is always hard to see "inside" but from the outside John Borghetti seems to be doing a good job

 

[kevrosmith]

Let's hope "additions" and "innovate" aren't the new word or Virgin-speak for "enhancements"

 

[RooFlyer]

Whilst liking the Virgin improvements so far, I have a niggling worry that the 'budget' aspect of Virgin will be migrated more and more to Tiger (assuming that deal goes through) and there will be fewer and fewer bargain fares, or consistantly 'well priced' fares with Virgin. I fly 75% of my domestic on Virgin becuase I think they have had the service/price balance just about right. I absolutely refuse to fly Tiger (for its past track record and I'm not just talking about the safety infringements) and if there's a rough equality of QF and Virgin price, I'll go QF and add to yearly status more quickly.

 

[Fruitcake]

Let's hope "additions" and "innovate" aren't the new word or Virgin-speak for "enhancements"

Especially since his implication is that any innovations won't be member-centric!

 

[serfty]

The introduction of earning ASA's was a positive move. Domestically I definitely prefer DJ.
...

I wait until I consider this a positive move rather than just window dressing.

Any seat awards generally have not been good value IMHO when compared to their basic rewards because, even with the cheaper ones, the straight up $$$ fares have been low enough that an ASA would not be an effective use of points.

If Velocity will allow Any Seat Redemption in the "Standard Award" fare buckets at costs comparable with QFF's then they may become more use to me.

 

[cove]

Serfty I was beginning to think I was an orphan on using points that way and I have never used a Velocity point redemption due to the status credit ASA being uncompetitive compared with Qantas.

 

[The Rok]

I would like to see VA offer a 777 service from PER-HKG to link up with VS into LHR.

 

[markis10]

I would like to see VA offer a 777 service from PER-HKG to link up with VS into LHR.

You will see them being put into domestic service first I suspect.

 

[The Rok]

That would be over kill for domestic would it not?

 

[markis10]

That would be over kill for domestic would it not?

Depends on their use, however VA are catering for the possibility with the new bays in Sydney.

 

[Jousams]

You will see them being put into domestic service first I suspect.

A330 would be more likely on both routes to HKG and further domestic routes.

 

[markis10]

A330 would be more likely on both routes to HKG and further domestic routes.

If they have spares, I suspect there is a good reason the nose in guidance (NIGS) at the new bays has three options, 737, 777 and A330 in Sydney.

 

[Jousams]

If they have spares, I suspect there is a good reason the nose in guidance (NIGS) at the new bays has three options, 737, 777 and A330 in Sydney.

Wasn't it 772?

Maybe just preparing for 788/9 which JB said they would make a decision on soon?

 

[yohy?!]

Wasn't it 772?

Maybe just preparing for 788/9 which JB said they would make a decision on soon?

They have 5 x 777-300ER at present

 

[markis10]

They have 5 x 777-300ER at present

NIGs for 772 and 773E no diff, its got nothing to do with 787 potential, more to do with having the capability to move masses quickly if needed, based on lessons learned from the last 773 domestic ops.