Star Alliance courts Virgin Blue

[crazydave98]

Thought this report would interest members:

Star Alliance courts Virgin Blue | ATW Online

cheers

CrazyDave98

 

[oz_mark]

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.

 

[drewbles]

*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

 

[moa999]

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

 

[stuartfaz]

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.

 

[drron]

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..............

 

[serfty]

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:

 

[lovetravellingoz]

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.

 

[kamchatsky]

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.

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.

 

[oz_mark]

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.

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.

 

[stryker]

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.

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.

 

[anat0l]

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.

 

[straitman]

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

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.

 

[dk4]

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:!:

 

[anat0l]

Interesting posts about AFFers jettisoning Velocity, in favour of alternate carrier programs, should they fully join an alliance:!:

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.)

 

[kpc]

DJ joining *alliance would be excellent news

 

[elbarto]

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.

 

[TheInsider]

Then there's Big **** to worry about.

I'm assuming that's Sir Dck you're talking about!?

 

[ozbeachbabe]

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.

 

[elbarto]

I'm assuming that's Sir Dck you're talking about!?

That would be correct.