Virgin Australia - any big announcements' for 28 Feb?

[CamDownUnder]

All the talk has been about Qantas and its 'big announcements' on Thursday 27 Feb when Qantas reports on its 1H FY14 financials and how its going to climb out of that big black $2 billion hole but what about VA which will report its own financials the next day, on Friday 28 Feb?

VA says a $49 million loss is on the cards but what do people think Virgin can cut? It seems they are already a pretty lean operation with much less 'fat' to trim that QF. They don't even have a lot of planes to delay orders on! Route cuts? Maybe but not good when they are trying to grow and pick up any passengers that QF leaves stranded after QF's own cuts.

What 'announcements' do you people think we will hear from Virgin on Friday?

 

[markis10]

I dont think their will be much, possibly some international expansion but the operation is pretty lean. It will be interesting to see how Tiger bite into their bottom line assuming they will take time to turn it around, and the flightwest takeover seemed to come with a few landmines.

 

[davidj]

What 'announcements' do you people think we will hear from Virgin on Friday?

Probably an increase in routes and new aircraft orders after Qantas passengers vote with their wings and move business on the 27th.

 

[ap_spd]

I would love to see some more partners announced and existing partnership strengthened (ability to book reward flights, better access to lounges) and yes a few more international destinations.

 

[eastwest101]

I too would expect a pretty much steady as she goes announcement of consolidating a few outstanding things, making sense of the Tiger acquisition, defusing Skywest landmines (as others have said), maybe getting their web site problems sorted out. Could cut or retire a few older aircraft early but I doubt it. It would be nice to see some additional international partners or better use of existing partners - but probably unlikely.

There may be a lot of background planning and "what ifs.." stuff going on in the background as they may want/need to respond/react to whatever happens at Qantas - especially QFd and JQd.

 

[gwilli1]

I am hoping few a few international route expansions with the additional A330's coming later in the year . It will be interesting to see what impact Tiger has to the result . I don't think there will be a lot of changes . JB I think will be happy continue on his Game Change program which he seems to have support for and has been relatively successful to date. . FY14 has been targeted as a Growth period for VA . Whilst I'm sure he has some growth strategies still to unveil , ironically , I think some of this growth may get "handed to him on a platter" depending on the fallout from QF on Thursday .

 

[Clivem]

One of headline points will be that .....


Virgin will confirm to the market that both the Virgin and Velocity web sites will be fully sorted and seamlessly integrated

.........................................by the first quarter of 2026. (bit ambitious if you ask me)

 

[Fiches Mouser]

Mega ellipses. That sums it up pretty well.

 

[StevenBrule]

One of headline points will be that .....


Virgin will confirm to the market that both the Virgin and Velocity web sites will be fully sorted and seamlessly integrated

.........................................by the first quarter of 2026. (bit ambitious if you ask me)

hahahah classic !! good calll

Better use of existing partners would be a treat ! the ability to upgrade on partners, for example singapore !!!!!!!!!

 

[docjames]

All the talk has been about Qantas and its 'big announcements' on Thursday 27 Feb when Qantas reports on its 1H FY14 financials and how its going to climb out of that big black $2 billion hole but what about VA which will report its own financials the next day, on Friday 28 Feb?

VA says a $49 million loss is on the cards but what do people think Virgin can cut? It seems they are already a pretty lean operation with much less 'fat' to trim that QF. They don't even have a lot of planes to delay orders on! Route cuts? Maybe but not good when they are trying to grow and pick up any passengers that QF leaves stranded after QF's own cuts.

What 'announcements' do you people think we will hear from Virgin on Friday?

Unlike Qantas, their strategy is to grow to a profit.

Ie. increase revenue to cover (fixed) costs.

I doubt they'll be focusing on cuts.

 

[lovestotravel]

Removal of hot dogs in lounges

 

[DaveB]

Capital injections probably the easiest way for the foreign airlines to increase ownership levels so doubt VA is going to blink first. Surely VA also got some form of undertaking from SQ to take Tiger off their immediate hands.
Current QF management is also not going to blink and will be in place until the company ever gets to the rebuilding stage.
Interesting times and glad my last QF flight was in January and all bookings made elsewhere.

 

[Clivem]

Removal of hot dogs in lounges

Won't happen ... not a chance ... far to extreme a move ... there would be crowds massing in the streets in front of the VA Bowen Hills HQ .... It would be a Newcorp / Current Affair field day !!!

 

[esquire]

What better time to focus on cuts/changes as well (quietly whilst QF gets all the attention).

Does anyone think that VA is going to increase service standards whilst it looks like QF will cut some? Why not just be slightly ahead at lower cost rather than waste money?

It isn't as if VA is profitable either and whilst they may have a (temporary) money tree out the back if they keep picking too much fruit they may have their own big announcement....

 

[markis10]

What better time to focus on cuts/changes as well (quietly whilst QF gets all the attention).

Does anyone think that VA is going to increase service standards whilst it looks like QF will cut some? Why not just be slightly ahead at lower cost rather than waste money?

It isn't as if VA is profitable either and whilst they may have a (temporary) money tree out the back if they keep picking too much fruit they may have their own big announcement....

VA have actually raised their standards recently, spending money on lounge expansions, free snacks etc. They have also announced orders for new generation equipment such as the Max, and I expect we might here some more order news soon on that front. Skywest and Tiger are the areas where there may be changes, mainline seems to be steady as she goes on a plan that has not really changed much in a few years now.

 

[Nexus9]

Removal of hot dogs in lounges

If they replaced them with something equally cheap that actually tasted nice .... perhaps Pizza .... then I am all for it

 

[Jousams]

The big difference between QF and VA is that in the last 4 years VA has had a huge integrated strategy and have stuck to it whereas QF have a new strategy every six months. (I.e OW focus > EK, partnership, premium Asian carrier, domestic capacity war, funding Asian JQs, reducing costs).
As such major change in QF tomorrow, steady as she goes for VA on Friday.

 

[dk4]

I think we should hear about the launch of a "make the move" campaign for Perth.

Re-enforcing that Virgin Australia, as a truly national carrier, is making a commitment to the people of Perth, whether they are flying for business or pleasure.

And that there is no better time than right now for West Aussies to make the move to Virgin, and Velocity.

Nonstop Virgin flights to popular international holiday destinations, like Bali and coughet. Great partner connections through Singapore to the rest of Asia, and nonstop to New Zealand. And for those heading east on business, simply the best domestic business class available on A330s every weekday, together with seamless onward connections to North America. Plus the most comprehensive intrastate network, to all corners of vast Western Australia.

Also new partner one stop connections to Europe and Africa, via Abu Dhabi and Johannesburg starting this year.

With brand new "state of the art" terminals: T2 already online and T1 domestic pier coming online this year, complemented by a new freeway system being built on the ground, to take the hassle out of getting to the airport.

Hopefully complementing all this with a ditch your QF credit card and "make the move to a Velocity earning card now" campaign.

 

[smit0847]

Company information - ASX

$83.7m loss - worse than expected!

Revnue up 6.4% but expenses up 10.9%

 

[markis10]

Company information - ASX

$83.7m loss - worse than expected!

Revnue up 6.4% but expenses up 10.9%

Their operations loss was inline with expectations, apparently guidance didnt cover Tiger or business transformation costs????