Virgin Australia flights to Doha

[ben95]

I’d imagine the decline in share price is party due to the exposure, even though I don’t believe VA carries any financial risk with this transaction.

Like you’ve said VA doesn’t carry financial risk wi these flights, so any share price move is largely driven by other macro factors (oil prices).

I wonder if VA are perhaps thinking of dumping the deal?

I’d imagine that would be ultimately QR’s call whether they still need the extra capacity in the new world we enter. ME as a transit hub to Europe may or may not be dead, who even knows at this point.

 

[Saab34]

However, I think this might have killed off any hope of VA taking up a dry lease. If this situation had happened with a dry lease, VA would be losing money hand over fist. It’s probably not sensible to operate 100% of your long haul fleet to a single market relying on a single carrier.

I think that’s a good point. Parking, maintaining and leasing a small widebody sub fleet would be be a significant cash burner. Let’s face it, in our lifetimes we will see future clashes in the ME, this isn’t the first and won’t be the last.

This has probably been a good test for VA to see how they can cope with these black swan events. With a leaner cost base and simpler model, will be interesting to see the numbers at the FY.

 

[MrJetset]

I had 2xJ awards booked mid May and mid June VA15/16. I saw VA15/16 were cancelled by an announcement and called straight away to ask for a reroute or be re-accommodated onto QR899/898 which QR had just announced they were restarting in May.

I didn't end up having to ask. The virgin rep offered same dates of travel on QR Flight numbers, still in J, nothing to be done on my end. New e-tickets received while on the phone.

Reroute via Singapore was not an option and she stated she could only offer Qatar/Refund/Date change.

I got the same generic email as you about 10 minutes after hanging up, but I'm glad I called and sorted it out.

We may not go given the circumstances, but I'm glad that choice is still ours and we can decide at the last minute.

Great result.

I wonder what happens to QR Avios redemptions on VA?

 

[justinbrett]

I think that’s a good point. Parking, maintaining and leasing a small widebody sub fleet would be be a significant cash burner. Let’s face it, in our lifetimes we will see future clashes in the ME, this isn’t the first and won’t be the last.

This has probably been a good test for VA to see how they can cope with these black swan events. With a leaner cost base and simpler model, will be interesting to see the numbers at the FY.

They're probably slightly regretting cutting off SQ for Euro codeshares. They'd be making bank at the moment with that. They should also be able to sell UA codeshares to Europe (or at least sell it as one ticket with a VA code to SFO and the UA code to Europe).

Even QF is selling BA connections to Europe through random ports like LAX and SCL. VA has really shot itself in the foot by putting all its eggs in one basket.

 

[Saab34]

Sort of leans into the question, did VA ever need
QR?

Remains to be seen what QR ‘sold’ to VA in its partnership, obviously more domestic feed is the main point, synergies via software etc remans to be seen. Clearly no fleet coordination as they leased off its 737s to other airlines and cancelled further max orders.

I agree that closer partnership with SQ and they had EY for Middle East who has doubled flights in recent years. However it might have come down to EYs lower exposure outside of the two capitals (nothing stopping EY from returning to PER/BNE however) plus TK would have been a logical partner also if they didn’t sign with QR.