If you met Paul Scurrah (Virgin Australia CEO), what would you say?

[Mattg]

On the back of the Qantas/Alan Joyce thread - If you had a day to spend with AJ to fix QF what would you say ? - I thought it might be interesting to have another thread for Virgin Australia.

Paul Scurrah has only been the CEO of Virgin Australia for less than a year, having inherited a loss-making business from his prdecessor. So he's in a slightly different position to Alan Joyce, who has been at the helm of Qantas since 2008.

Nonetheless, if you had an opportunity to say something directly to Paul Scurrah, what would it be?

 

[juddles]

I have never flown Virgin. Ever.

Have nothing against them, but they have never been able to offer me something that I value, like a One World or Star Alliance membership.

What would I say to Paul?

Perhaps the following:

Reality check. Qantas has a leading position based on history / hype / marketing / etc that will never change in Australia. But being Aussies, there is also a market for a choice - support for the battler. So become the "battler". Sheer economics of an airline are extremely tight - it is an industry where most costs are almost fixed, margins are unbelievably slim, and every joker (despite what they say) use online price choice as the Number One criteria for travel. To compete with Qantas they need to focus on this market which are the unbelievers in dominant Qantas. So play the Under Dog, and play it hard. But with this there is the need to accept that you are not fighting for 50% of the market. You will never get that. So instead be realistic and aim for just that market, the "alternatives-to-Qantas". And when you work out how big or small that market is, select what real percentage you can attract and run at a PROFIT. This could be 30%, or more likely 15%. But focus on that.

 

[p--and--t]

I would ask..

Would the company please make up it's mind and follow through. Are you still just Virgin Blue with merely a coat of paint so you don't look like Tiger or Virgin Australia the company that was supposed to be a full service airline .(but isn't).

 

[juddles]

Addendum:

And learn from what Qantas have done. Ruthlessly cut unprofitable routes, even if people complain. (Who cares if they complain if they were not prepared to spend the money to actually make it economically viable - you are not a charity)

Understand the power of alliances. I get that due to myriad issues, big time global alliances are not an easy thing to get, but many very competent airlines now seem to have renewed focus on inter-airline alliances rather than just membership of global ones. I consider myself an "average" customer, albeit one who does have a large travel spend. As I said, I have never flown Virgin. I am sure their total product is as good as Qantas. Over the years my perception is that their onboard staff (the ones that really count) are perhaps better than Qantas. But the airline simply did not offer anything valuable from the whole FF side. I suspect there are many that could be in a similar position. I know it is not about to happen, but IF Virgin became a Star Alliance member, I would jump ship immediately. The only real local presence of Star Alliance is NZ, and their FF program and Star Alliance redemptions are a basket case.... (hint - talk to Avianca and learn from them)

I am no expert on airlines nor their politics, but I understand that there was friction between Virgin and NZ that rose above decent commercial realities. This can be fatal. Same in any business.

 

[juddles]

And last comment, simply read the grievances within AFF about Qantas. Be different. There are so many ideas within this forum that are real customer desires that do not cost real money!!!

 

[exceladdict]

There is tremendous value that could be realised, with a reasonable investment, in focusing on customer service, especially where QF lacks, as was mentioned. Imagine, "If you wait on hold for more than 5 minutes to our call centre, you get 1000 points. No question"

 

[juddles]

There is tremendous value that could be realised, with a reasonable investment, in focusing on customer service, especially where QF lacks, as was mentioned. Imagine, "If you wait on hold for more than 5 minutes to our call centre, you get 1000 points. No question"

I agree with the sentiment, but seriously, this is a forum of people of whom many love (as I do!) a bargain or opportunity. Within days we would identify peak phone waiting times, and then have a fest of innocent calls to harvest points

 

[dajop]

Get in a room with DL and UA and hammer out a deal that would preserve your DL alliance and at the same time allow you to enter star alliance.

Then you can all send a one fingered salute to QF/AA.

 

[Must...Fly!]

Why are money making 737s continuing to be shunted to Tiger, when at the same time mainline VA can not squeeze more than 2 frequencies a day out of expensively leased A330s on almost every day of the week?

Those 737s along with A320s on TT operate a double daily MEL-PER-MEL and daily SYD-PER-SYD, undercutting mainline. Who at the same time are playing games trying to up yield and RASK on these routes (look at the daily type and frequency on the MEL-PER-MEL and SYD-PER-SYD for any given day between VA and QF - you will be shocked).

It's not like it's just the old B737s being sent to Tiger, either. Maybe I'm missing something, but then again I'm not a shareholder.

 

[kpc]

Join Star Alliance....then I can ditch Qf.

 

[pauly7]

1) Fix Velocity now you have bought it. Fix the awful website / lack of IT integration with VA. Fix the awful apps. Find a way to join an alliance or iron out all the issues with the patchwork quilt one you have one right now. Release some int. J award inventory (ok that’s a personal favour )

2) Understand that you need to cut costs, but please stop attacking J class benefits and catering we will be left stale pretzels for a hot dinner soon.

3) Integrate Tiger into Velocity/VA like QF has done Jetstar.

4) Highly suggest you never take the 737 MAX, unless QF do. Otherwise you are walking into a PR bear trap. Suggest just refurb the 73H fleet do you really need brand new planes?

5) Relook at some of your outsourced ground crew contracts. Some airports have very average CX experiences from third parties dressed in your uniform.

6) Uniform is looking tired now actually, crew often gossip how bored they are with it. Maybe a nice way to kick morale in the right direction.

7) Find a way to fly smaller planes profitably. Yes we know the ATR and ejet experience has been a blood curdling nightmare but it can’t be impossible. QFLink and Rex manage it. You will never be a full contender in AU without skinnier routes to secondary cities, you can’t make money by hauling heavy gas guzzling 737s in on heavily reduced frequencies v the competition.

8) Kill unprofitable routes straight away and just forget brand ego. Trans Tasman looking at you. Hong Kong. Suspect some Tasmanian services.

9) Best of luck! You have a mandate and can steamroll over the mess that JB made with new turf!

10) PS Fire your Marketing department or at least the people who backed the WIGGY disaster

 

[Denali]

Hobart lounge. Promised one in 2012, where is it?

 

[Mattg]

Join Star Alliance....

This is the main reason I don't take Virgin Australia/Velocity more seriously and choose to focus on other frequent flyer programs instead. If VA joined an alliance (be it Star Alliance or SkyTeam - I don't mind), I would probably use it as my main airline/program.

The experience of flying internationally with Virgin's patchwork of partner airlines is haphazard, inconsistent and frequently disappointing. It's a shame because I like Virgin as a brand and as a domestic airline.

 

[DC3]

If I were to meet him on a flight, I would ask:

“Oh, so you are flying Qantas today?”

 

[Inlander]

The airline business is a highly geared ( debt to equity) industry. The capital / lease cost of your assets is high. Seat yields are constantly under pressure from competitors and fickle pax demand. The Borghetti model was to be an alternate Qantas ( or integrated full service model). Unfortunately your balance sheet doesn't have the capital reserves that Qantas has and the series of losses doesn't help albeit, you are a fair way off from being on the skids.
My suggestion is that you continue with cost restructure, invest more in strategic alliances ( i.e ANA is a winner, Delta etc, integrate Tiger( you now have bar bones economy seats on offer - why keep Tiger it's only competing with you). Take Velocity to the next level, it's a very good rewards company ,.plenty of suggestions here in this thread to tidy it up.

Longer term Aust Govt policy needs to loosen up and allow the likes of Singapore, ANA , Virgin etc to come in here and fly Trans pacific etc by a capital ownership model of our second domestic airline.

 

[MH_fan]

I think, for serious flyers, joining a global alliance is very inportant. The patchwork of inter-airline alliances is just that - patchy and inconsistent, with different experiences depending on which partner you're flying with. A true frequent flyer (and this is the kind of passenger you want to foster a healthy sense of loyalty with) wants consistency when it comes to the whole travel experience. I understand that most people here want Star Alliance but that is going to be extremely difficult given recent history, so SkyTeam would be a more likely choice. Hey, if people want VA to join a global alliance, they can't complain about which one you join as long as you join one!

 

[RooFlyer]

"Who are you and what are you doing in my carefully selected seat?"

 

[luxury-lizard]

Well I chipped in on the AJ thread so here's my 2 cents worth on VA:

• Join *A - the hodgepodge of partners is confusing and useless (to me anyway)
• Fix your website - it's one of worst airline websites I've ever used
• While I consider myself something of an expert on various FF programs (ie the ones I use) - I find VA's totally useless and confusing and don't even bother collecting points

Unlike other respondents I usually travel VA domestically when using paid economy tickets as my AmEx card gives me access to their lounges. I use QF domestically when using award flights (using AA points - great value).

 

[Deleted member]

Please make an effort to at least “look” as though you’re competition for QF !
Get some kind of alliance. I’m guessing the benefits could flow both ways !

 

[Bolthead]

Hello, I hope you are well....