VAH 2014 results announcement

[amaroo]

Cookies must be enabled. | The Australian

VIRGIN Australia will move to slash costs by $1 billion over the next three years after the surge in domestic capacity and weak consumer sentiment saw it post a $356 million net loss in fiscal 2014, more than three times its previous loss $98.1 million.

........

Unlike his rival at Qantas, Mr Borghetti did not provide guidance for the current financial year but said the airline was well placed to capitalise on market recovery and pointed to longer-term plans to deliver “a sustainable, profitable business’’.

 

[markis10]

- 'in the next few weeks, we will make a major announcement on our premium product offering' - I'm guessing new 77W J seat?

Its a new J product across the fleet. Nice to see an airline bringing forward orders (as in the 737Max now 2018) and many will be pleased to hear confirmation that XFA and B are retiring or retired officially.

 

[smit0847]

Its a new J product across the fleet. Nice to see an airline bringing forward orders (as in the 737Max now 2018) and many will be pleased to hear confirmation that XFA and B are retiring or retired officially.

What, even a new 737 and A330 J product? I'm not sure what they can change about the 737 product - you can't make 8 recliners in a fixed space much different to what they are now. And some of the A330s are factory fresh meaning a new J seat. I really dont think VA need fully-flat trans con just because QF do it.

 

[moa999]

Its a new J product across the fleet. Nice to see an airline bringing forward orders (as in the 737Max now 2018) and many will be pleased to hear confirmation that XFA and B are retiring or retired officially.

I thought XFA was already gone.

Agree that Qantas not having a 737Max order is strange, albeit their oldest 737 is a 2002 delivery (VH-VXA delivered Jan-2002, picked up from the cancelled AA order) and they seem to be planning to keep and refurb these aircraft.

Having just checked, Virgin's oldest 737 is now 2003, having rolled off all previous deliveries. Interesting that since its startup Virgin has divested 66 aircraft
- Virgin Blue Airlines (ATDB)

 

[markis10]

I thought XFA was already gone.

Agree that Qantas not having a 737Max order is strange, albeit their oldest 737 is a 2002 delivery (VH-VXA delivered Jan-2002, picked up from the cancelled AA order) and they seem to be planning to keep and refurb these aircraft.

XFA has gone, it was just odd that up until today VA refused to conform it.

Re the QF 738s, they are getting rid if 2-3, supposedly two being sold and one returned to lessor.

 

[markis10]

What, even a new 737 and A330 J product? I'm not sure what they can change about the 737 product - you can't make 8 recliners in a fixed space much different to what they are now. And some of the A330s are factory fresh meaning a new J seat. I really dont think VA need fully-flat trans con just because QF do it.

JB mentioned a new business product for domestic and international, and that's consistent with the info some got when they were on the beta program.

 

[travelislife]

Virgin Australia new Airbus A330 Boeing 777 domestic international business class - Flights | hotels | frequent flyer | business class - Australian Business Traveller

 

[smit0847]

Borghetti confirmed that in additional to its existing domestic flights, the Airbus A330 will be introduced onto a new international route.
“At some point in the future we will be operating A330s international” Borghetti told Australian Business Traveller, although he declined to nominate a timeline or destination.
Borghetti said the new “premium product” would take Virgin’s product consistency across the fleet from “somewhere around 90 percent to 100 percent.”

Let the guessing begin....

 

[Cool Cat Phil]

I think part selling their FF business is a stupid idea, not only for the long term for the company and but also for the FF's who will no doubt see benefits/awards reduced. Maybe they were banking on QF selling part of theirs as well so thought they would do so as well?

Other than a short-term cash hit, I can't see any long term benefit from this sale.

I can see the Virgin velocity Frequent Flyer Program going down the Path of Aeroplan, the Frequent flyer program spun off from Air Canada..... An extremely poor Frequent flyer program in terms of rewards for its frequent flyer members. One of the worst In the loyalty/customer insight industry.

For someone like myself who has yet to open a Virgin Velocity Frequent Flyer account, today's announcement of a partial sale of the program hasn't exactly got me excited to open one up in any hurry.

 

[rtyuiop]

Let the guessing begin....

Before this announcement, I would have assumed they would borrow the J seat of one of their big partners (NZ, EY, or SQ) for the 777s... But any seat desirable for the very long flights the 777s do would surely be overkill for an A330 which mainly just goes coast to coast?

Danny

 

[TomVexille]

Before this announcement, I would have assumed they would borrow the J seat of one of their big partners (NZ, EY, or SQ) for the 777s... But any seat desirable for the very long flights the 777s do would surely be overkill for an A330 which mainly just goes coast to coast?

Danny

There is the bit where JB said that they will be deploying the a330 on an international route.

 

[rtyuiop]

Yeah - I am assuming the majority of 330 usage will still be coast to coast, though, surely?

 

[TomVexille]

Yeah - I am assuming the majority of 330 usage will still be coast to coast, though, surely?

I assume so. However VA seem to believe that proactively offering a equal (better?) product than the upcoming J "suite" that QF will begin installing supposedly by the end of the year is a good idea.

 

[moa999]

Yeah - I am assuming the majority of 330 usage will still be coast to coast, though, surely?

Yes.
But with A330s going from 7 to 6, and some diversions to an undisclosed location,

either frequencies are getting dropped, or downgauged from A330 to B737

 

[mannej]

A tad off topic but surely it isn't that hard to get the correct airline in the clip. Well done 7.

 

[Justchecking]

They're very cheap seats because there aren't any. Not out of Australia anyway on that one.

 

[notzac]

What makes it even better is they've photoshopped the word 'atlantic' out of the image.

For comparison, here's a picture they may have used:

 

[Saab34]

ABC showed a Virgin 737 yesterday that didn't have winglets. Goes back 10+ years!!

 

[markis10]

ABC showed a Virgin 737 yesterday that didn't have winglets. Goes back 10+ years!!

Or it was symbolic - loss clipping their wings.

 

[Major]

I see the sale of VFF went to an investment firm


Today we celebrated an exciting milestone for Velocity Frequent Flyer. We announced to the market that one of the Asia Pacific’s largest investment firms, Affinity Equity Partners, will purchase a 35 per cent minority stake in the Velocity Frequent Flyer program.