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

[Supersonic Swinger]

What is the possibility that the messy ownership situation is resolved sometime soon?

Questions such as network and fleet strategy, partnerships or alliances, are going to be hamstrung while the ownership is like wrestling five elephants in the room (Etihad Airways 21%, Singapore Airlines 20%, Nanshan 19.9%, HNA Group 19.8%, Virgin Group 10%, ASX public 9.3%): 'Five elephants in the room': Virgin Australia dances ownership tango

 

[HS-TQE]

What is the possibility that the messy ownership situation is resolved sometime soon?

Questions such as network and fleet strategy, partnerships or alliances, are going to be hamstrung while the ownership is like wrestling five elephants in the room (Etihad Airways 21%, Singapore Airlines 20%, Nanshan 19.9%, HNA Group 19.8%, Virgin Group 10%, ASX public 9.3%): 'Five elephants in the room': Virgin Australia dances ownership tango

Not likely to be resolved for the foreseeable future unfortunately.

HNA and Etihad has financial issues of their own.

"The so-called saviour" SQ have been hands-off in VA for the past few years and are on record as not being happy with their stake for a while now (reporting the VA losses in their own financial reporting).

There's the annual "SQ to buy a large stake" (fake news) article that occurs every year (usually timed around when other parties such as TK, NH or DL are mentioned as suitors in articles).

It's likely the unorthodox ownership mess will remain the status quo.

 

[Supersonic Swinger]

Not likely to be resolved for the foreseeable future unfortunately.

HNA and Etihad has financial issues of their own.

"The so-called saviour" SQ have been hands-off in VA for the past few years and are on record as not being happy with their stake for a while now (reporting the VA losses in their own financial reporting).

There's the annual "SQ to buy a large stake" (fake news) article that occurs every year (usually timed around when other parties such as TK, NH or DL are mentioned as suitors in articles).

It's likely the unorthodox ownership mess will remain the status quo.

Hence my question:

- Does he see some way for the stifling ownership impasse to be resolved?
- If not, what was his goal in becoming CEO if the ownership impasse was going to severely limit his strategic options on so many fronts?

He's going to be hamstrung making big bets on partners, networks, or alliances, raising significant capital for fleet renewal or expansion, etc while it's like this.

Virgin Atlantic needed a 49% investment from Delta and now the DL/AF/KL JV to sort out its direction, how can that occur for VA under the current ownership?

 

[Marty_]

I would also raise the issue of an alliance.

I know Virgin claim that their "bilateral agreements" suit them better, but they need to get real and realise it doesn't suit serious customers and potential serious customers.

 

[jase05]

There was a long period of time where I was all for VA entering an alliance (was hoping for SkyTeam) but I can see the days of major alliances coming to an end and several smaller partnerships forming instead. VA needs to sort out its patchy partnerships and try to get similar deals across the board. Further strengthening ties with DL would be the best way forward and I’m really hoping this partnership with NH grows and bears fruit.
As others have said though if they go too basic and get rid of domestic J I’d have to turn to QF unfortunately

 

[jakeseven7]

There was a long period of time where I was all for VA entering an alliance (was hoping for SkyTeam) but I can see the days of major alliances coming to an end and several smaller partnerships forming instead. VA needs to sort out its patchy partnerships and try to get similar deals across the board. Further strengthening ties with DL would be the best way forward and I’m really hoping this partnership with NH grows and bears fruit.
As others have said though if they go too basic and get rid of domestic J I’d have to turn to QF unfortunately

They won't be getting rid of domestic J because it will simply be too expensive to do so (fleet refits are probably the last thing on PS's mind).

They might continue to downgrade the domestic J offering it though as much as the market will bear, to save money. Or flip back to not offering it on some routes like they used to (Some regional routes no J service, some lucky pax got a J seat for 'free')

 

[Harthagan]

They won't be getting rid of domestic J because it will simply be too expensive to do so (fleet refits are probably the last thing on PS's mind).

They might continue to downgrade the domestic J offering it though as much as the market will bear, to save money. Or flip back to not offering it on some routes like they used to (Some regional routes no J service, some lucky pax got a J seat for 'free')

Pretty much this. I expect a slow but continued watering down of service and benefits across the board rather than a drastic overnight change. At a certain point though, all but the very least savvy flyers will realise what's up.

 

[Inlander]

They won't be getting rid of domestic J because it will simply be too expensive to do so (fleet refits are probably the last thing on PS's mind).

They might continue to downgrade the domestic J offering it though as much as the market will bear, to save money. Or flip back to not offering it on some routes like they used to (Some regional routes no J service, some lucky pax got a J seat for 'free')

We could end up with the notorious Delta cane basket for flights up to a certain mileage ! bananas and crisps here we come !

 

[HS-TQE]

I would tell him I loathed the days of DJ and if he takes VA downmarket I wouldn't fly it again.

I'd say from my Velocity member perspective I love priority boarding, lounges not just being clones of QF's (but to fix the severely crowded SYD peak), pooling, J service and (until the recent reported downgrades which I haven't seen myself, not having flown VA recently) J food.

Add that I can't believe they lost the partnership with Air NZ.

I'd conclude by saying I'm willing to bet VA (or Tiger) isn't going to succeed in remotely threatening JQ, or QF's stranglehold because of inertia or firmly entrenched loyalty, but joining *A would probably tip a lot of AFF members over as these virtual alliances clearly aren't enough and start to force people to take you seriously. That's probably money better spent than on Japan... I hope they succeed but I'm pessimistic when HKG didn't.

And yes, fix the website - not everyone always uses a tablet, I want seamless integration between Velocity and the rest not new tabs all the time!!

The NZ 'partnership' was unravelling for some time. The "2 egos" of Borghetti and Luxon in combination with mismanagement from EY and SQ on that 'fateful' meeting pretty much pushed Luxon/NZ over the edge with no option but to sell out.

As pointed out previously, VA faces a blocking veto from at least two of the Star Alliance members considering the "enemies" they've made there. This was backed with *A no longer showing interest in VA on the back of the NZ breakup.

Joining any Alliance in general doesn't solve VA's many problems.
Ansett tried that with *A, with a reduced international network. *A didn't exactly help Ansett financially, taking into consideration that AN was in a worse situation than VA.

 

[SeaWolf]

As pointed out previously, VA faces a blocking veto from at least two of the Star Alliance members considering the "enemies" they've made there. This was backed with *A no longer showing interest in VA on the back of the NZ breakup.

I think joining the alliances has become a problem for pretty much all airlines. Royal Air Maroc joining oneworld will be the first new, full member of any of the alliances since 2014. I'm not sure where the problem lies, maybe the alliances have just made it too hard to join, maybe the benefits just aren't attractive to the airlines anymore, maybe the alliances aren't interested in new members, maybe the airlines don't think the restrictions are worth it. In any case there's obviously something wrong if no airlines has become a full member of any alliance in nearly six years.

I'd love it if VA joined *A, from a consumer point of view it's great, but I suspect that from a business perspective there's something broken about the three alliances that isn't immediately obvious to us.

 

[Bagpuss]

I think joining the alliances has become a problem for pretty much all airlines. Royal Air Maroc joining oneworld will be the first new, full member of any of the alliances since 2014. I'm not sure where the problem lies, maybe the alliances have just made it too hard to join, maybe the benefits just aren't attractive to the airlines anymore, maybe the alliances aren't interested in new members, maybe the airlines don't think the restrictions are worth it. In any case there's obviously something wrong if no airlines has become a full member of any alliance in nearly six years.

I'd love it if VA joined *A, from a consumer point of view it's great, but I suspect that from a business perspective there's something broken about the three alliances that isn't immediately obvious to us.

I think you are spot on. They work for a consumer as they unerstand Star Alliance, OneWorld, Sky Team etc. But struggle with alliances.
Look at VS, still not a member of an alliance when SQ sold to DL. Throw in the new Air France/KLM Joint venture and you wonder why they are not a member of SkyTeam.
In truth, if you are a AFF and you fly on OneWorld partners you still kinda need to understand all the benefits etc.
Joining an alliance comes at a cost and likely they would still have other airline partners anyway so you get the jumble of the two (IE Qantas with Emirates, Air New Zealand and OneWorld .. and other key partners).
If DL ever took a fair share of VA that would likely be a turning point.

If joining an alliance was a silver bullet fix, would have happened a long time ago. But it will be questioned over and over ... oh and over and over and over and over again ... oh and over and over .......

 

[trippin_the_rift]

.....
If joining an alliance was a silver bullet fix, would have happened a long time ago. But it will be questioned over and over ... oh and over and over and over and over again ... oh and over and over .......

I've seen first hand the financial impact on joining an alliance (from multiple airlines perspective - working both inside an airline, and then as an external consultant for another airline), and the 'cost to join' is almost entirely irrelevant. The gains and losses for the airline are in other areas of the group. From my perspective - folks get too hung up on the costs and don't look at the opportunities for incremental gains.

I bet Paul has a tough job. I'd buy him a beer.

 

[HS-TQE]

VA Shares hit 'new low' - Virgin Australia shares hit a record low of 13c a share, after falling 10.34% yesturday.

Source: (Paywall): NoCookies | The Australian

With no immediate plans for privatisation, and with potential buyers choosing to stay away from VAH for the foreseeable future. VAH are in for a rough ride ahead.

 

[TomVexille]

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!!!

Can I point out that they are different. They phone wait times are only a few minutes, priority boarding exists, and priority baggage works

 

[Marty_]

VA Shares hit 'new low' - Virgin Australia shares hit a record low of 13c a share, after falling 10.34% yesturday.

Sounds like a good buy.

I actually do think, in time, Scurrah will turn the ship around to some degree, so I am serious.

 

[GSP]

How's it going Knackers?

 

[aus_flyer]

Scrap The Club. It's mostly empty. Massive drain on earnings. Instead, make it a Business lounge - but access is limited to paying Business Class passengers (no awards, no upgrades). You'd steal QF paying business class passengers straight away - particularly government employees. Very high quality revenue simply by offering a glass or two of Bollinger and a steak with truffle fries.

 

[Must...Fly!]

Is the club a massive drain?

 

[BAM1748]

Are you a LCC or not, if not improve the offerings and if you are a LCC stop pricing like a full service airline.

 

[Major]

Do you intend to continue with your order for 737 MAX aircraft ?

Will the first of these 737 MAX 10 aircraft still be delivered in July 2021 ?

If you cancel these orders what is your alternative ?