Star Alliance courts Virgin Blue

Discussion in 'Open Discussion' started by crazydave98, Dec 14, 2010.

  1. crazydave98

    crazydave98 Active Member

    Oct 25, 2005
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  2. oz_mark

    oz_mark Enthusiast

    Jun 30, 2002
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    Will certainly be good if Virgin Blue can join Star. I know Star used to have reservations about it due to the business model of DJ - so certainly a positive.
  3. drewbles

    drewbles Senior Member

    May 11, 2007
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    *crosses appendages and prays to every Deity*

    *A has been missed since AN went under, leaving QF a virtual monopoly alliance wise.

    This would indeed be excellent news if they did manage to convince JB to have DJ join:)
  4. moa999

    moa999 Senior Member

    Jun 23, 2003
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    interesting, particularly the Board Meeting invite

    yet earlier in the year

    Virgin hints at signing up to SkyTeam

    At the moment DJ probably gets feed from both skyteam and *alliance. If they shift to one or the other presumably will only drive some traffic away.

    Can't see Delta being pleased
  5. stuartfaz

    stuartfaz Active Member

    Jan 9, 2007
    If this goes through, along with the DL and EY deals, Virgin and Velocity will go from also-rans to being ridiculously connected.

    Can't help but think if something will give.

  6. drron

    drron Enthusiast

    Jul 4, 2002
    Sunshine Coast
    Well crazydave brings this article to AFFs attention,JB is quoted as saying he expects a decision soon and there is this-
    Exodus of senior staff from Qantas continues
    And a guy to supervise services including the Lounge.
    And Christmas is associated with a star-Hmmmm.
    All I want for Christmas is..............
  7. serfty


    Nov 16, 2004
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    I was at a presentation by Bruce Parton (Air NZ Group GM "Australasia") on Saturday morning and he alluded to the likelihood that NZ and DJ would be permitted by the regulatory authorities to get their act together with an announcement on that imminent. He did state that all parties who initially lodged objections have dropped them.

    Interesting if it happens with *A; I'd become top level with two *A FF programs rather than with *O wich would have been more probable in years gone past ... :shock:
  8. lovetravellingoz

    lovetravellingoz Senior Member

    Jul 13, 2006
    Hopefully this would allow you to fly VB...but award points to a *A program with a decent FF program, unlike VB's which is poor.
  9. kamchatsky

    kamchatsky Established Member

    Mar 8, 2006
    Somewhere in Sydney
    Yes please bring DJ to *A. That would be huge. I expect that DJ will revamp Velocity Rewards at the same time once it is the case.
    But expect their alliance with Delta to get dropped if this becomes reality.
  10. oz_mark

    oz_mark Enthusiast

    Jun 30, 2002
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    I'm hoping they give the program a makeover as part of the current review.

    Even if they were to go down the *A path, I suspect it will be quite a while before it happens. A good year, if not longer.
  11. stryker

    stryker Member

    Sep 28, 2006
    It's even worse than that.

    Doesn't fill me with confidence that DJ would be a worthwhile member of *A. Somewhat less good than Egyptair (MS), I would imagine.
  12. anat0l

    anat0l Enthusiast

    Dec 30, 2006
    #12 anat0l, Dec 14, 2010
    Last edited: Dec 14, 2010
    Go go go! Definitely would like to see this get up, because it means some real options with respect to choosing carriers and alliances.

    *A has a great network and some great carriers within it too. Notwithstanding that the subset of premium award carriers is concentrated and with more members it gets much harder to access premium awards (and it doesn't help with the USA scam FFPs making it too easy), having some real competition in Australia with respect to alliances is much needed! It is one of the main reasons I have been reluctant to move off ow and onto *A fully, which means I keep a leg in both camps (I might still keep on doing it, mind you).

    With the Virgin Group of Australia introducing a domestic business class (aside: didn't know that a short-medium J is required to enter *A - where's your compliance with that, NZ...), a potentially new Clubhouse like lounge in SYD T1 and widebody aircraft for non-shorthaul routes, joining *A would really make for an attractive prospect.

    It would definitely increase the value of the Velocity program, although one has to wonder how this will pan out (status credits and redeemable miles) when combined with all the *A partners. (Getting 50k for "DJ*G"** (/ Velocity Gold) is not the lowest qualification amount out there, but it's not by any means a difficult target per se). Cross-alliance redemptions will also become a feature highlight (although the "easy targets" in this respect tend to be dominated by the...yep, you guessed it...USA based FFPs).

    In conclusion: Jaan, if you know what's good for you and your key weak market, you'll make this work!

    **Forgot to mention. A Velocity Gold actually would have an easier time getting requalification because you get extra status credits as a Gold (i.e. 40% more than Red). By that time, a *G qualification threshhold would become very attractive and amongst some of the easiest in the alliance.
  13. straitman


    Apr 27, 2003
    SE Oz (Sale)
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    Why do you say that :?:

    I'm sure there would be some major effort required at several levels it would/should certainly help DJ and the Australian travelling public.
  14. dk4

    dk4 Established Member

    Mar 23, 2010
    Well certainly looks like they are the belle of the ball, ATM.
    • Star Alliance / Strong partnership with Air NZ
    • Sky Team / Strong partnership with Delta
    • Virgin Group Alliance (VS & VX)
    • Non-aligned/ Strong partnership with Etihad (plus connections with Malaysia Airlines, but with Branson invested in AirAsiaX & Jetstar in limited partnership with AirAsia)
    • TBA Possible new Asian Airline partnership
    I wonder what Singapore Airlines take on things is, with its -
    • TT investment
    • VS investment
    • SQ transpac (AU-US) expectations
    Interesting posts about AFFers jettisoning Velocity, in favour of alternate carrier programs, should they fully join an alliance:!:
  15. anat0l

    anat0l Enthusiast

    Dec 30, 2006
    #15 anat0l, Dec 14, 2010
    Last edited: Dec 14, 2010
    It is interesting, but it will depend on how Velocity changes (if it joins *A) to accommodate earning and burning on *A partners.

    Also, the Virgin Group airlines will be required to conform (give or take other "exceptions" ;) (NZ:!:)) to *A cross-alliance benefits, including, for example, priority baggage (will they institute this on domestic operations?), priority check-in, additional baggage for *Gs etc.. The key to the uptake or defect away from Velocity is whether Velocity will offer good benefits (beyond the cursory *G benefits) combined with good earn and burn (or one or the other, and good requalification threshholds). Perhaps Velocity will have another tier on top of Gold.

    Take A3 as a case. A3 has a very low *G qualification threshhold at 20k miles. However, the benefits of A3*G are standard except for priority security at Athens, but that's it. Earn and burn on Star Alliance isn't spectacular with A3, although it's difficult to ascertain when miles expire with A3 (website information is pretty substandard). So if one really wants only the *G benefits than A3 is a good place but for more of a balance for earn and burn then perhaps not.

    Other things that come into play are upgrade policies and instruments (this will be very interesting, i.e. Virgin Australia system vs. QF) - particularly cross-alliance - fuel surcharges on awards, award availability / blocking (Velocity, as with almost every other carrier in the alliance, may not be able to access SQ R, NH F and LH F awards; their access to other F and J awards may also be limited) and award rules (i.e. routing, costing, how to book, etc.)
  16. kpc

    kpc Senior Member

    Mar 11, 2003
    DJ joining *alliance would be excellent news:)
  17. elbarto

    elbarto Established Member

    Nov 8, 2010
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    There's a possibility SQ would block it. And I don't know if DL or EY would especially like it either. Then there's Big **** to worry about.
  18. TheInsider

    TheInsider Established Member

    Jul 7, 2010
    I'm assuming that's Sir Dck you're talking about!? :p
  19. ozbeachbabe

    ozbeachbabe Senior Member

    Jan 10, 2009
    What would it cost DJ to joing Star Alliance? It would not be cheap.

    I remember ages ago before SQ joined *A their argument to not join was that they already enjoyed an average load factor of 90% and it wasn't worth paying 100 million dollars to fill the remaining 10% of seats.
  20. elbarto

    elbarto Established Member

    Nov 8, 2010
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    That would be correct.

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