Virgin Blue left NZ in the red red red...

[jakeseven7]

Newly released Virgin Blue corporate accounts have shed some light on the pressure the airline was under to cease its domestic operations in New Zealand.

According to the Sydney Morning Herald (SMH), the carrier’s subsidiary, Pacific Blue, posted a bottom-line loss of NZD19.8 million in the year to June 2010.
This figure compared with a deficit of NZ$786,000 in 2008-09, and with a profit of NZ$5.4 million in 2007-08, the newspaper reported.

Virgin Blue left NZ in the red - Airline News - etravelblackboard.com


Interesting given certain members of this board who rep Virgin were claiming Pacific Blue was the most profitable part of Virgin when asked Boy I hope that wasn't true!

 

[yohy?!]

Newly released Virgin Blue corporate accounts have shed some light on the pressure the airline was under to cease its domestic operations in New Zealand.

According to the Sydney Morning Herald (SMH), the carrier’s subsidiary, Pacific Blue, posted a bottom-line loss of NZD19.8 million in the year to June 2010.
This figure compared with a deficit of NZ$786,000 in 2008-09, and with a profit of NZ$5.4 million in 2007-08, the newspaper reported.

Virgin Blue left NZ in the red - Airline News - etravelblackboard.com


Interesting given certain members of this board who rep Virgin were claiming Pacific Blue was the most profitable part of Virgin when asked Boy I hope that wasn't true!

A shame they couldn't make it work - I doubt Kiwis are overjoyed with the choice of JQ NZ now:!:

 

[jakeseven7]

A shame they couldn't make it work - I doubt Kiwis are overjoyed with the choice of JQ NZ now:!:

Meh - Pacific Blue = Jetstar!

 

[samh004]

Interesting news in the sense that it appears Jetstar, despite public opinion that I hear in New Zealand, was able to pry away a fair amount of sales. They (JQ) must be doing much better than I would have thought.

I wonder if the route across the Tasman is as bad as the domestic operations, or which one is doing worse, because I actually enjoyed my flight with them across the Tasman last year, despite the delays.

 

[stuartfaz]

I wonder if the route across the Tasman is as bad as the domestic operations, or which one is doing worse, because I actually enjoyed my flight with them across the Tasman last year, despite the delays.

From those figures jakeseven7 provided, it looks like the trans-tasman operations were in the black, and only dragged down once domestic operations started.

 

[pauly7]

NZ is littered with the bones of failed Australian airlines! Don't know why PB thought they could do better.

Despite a great PR campaign waged by Air NZ against Jetstar NZ, Jetstar are doing very well over there, I expect QF is loving turning the screws on them in their homeland...

 

[yohy?!]

Meh - Pacific Blue = Jetstar!

Having flown both I beg to differ

 

[crazydave98]

Interesting given certain members of this board who rep Virgin were claiming Pacific Blue was the most profitable part of Virgin when asked Boy I hope that wasn't true!

I think you may be having trouble distinguishing between Pacific Blue's international and domestic NZ operations. No-one has ever claimed that NZ domestic was ever profitable but most of the Pacific Blue network has been most of the time since it was established and certain routes are amongst the most profitable in our entire short haul network. At certain times Pacific Blue has been the most profitable part of our network, but things change: GFC, new competitors, alliance opportunities.....

 

[jakeseven7]

Having flown both I beg to differ

Everyone is entitled to their own opinion!

I could fall asleep on either and not know the difference (Actually Jetstar seats are a bit more comfy)

 

[crazydave98]

NZ is littered with the bones of failed Australian airlines! Don't know why PB thought they could do better.

Personally I did not agree with the decision to enter that market. However up until the GFC hit and Jetstar replaced QF Pacific Blue was on track to break even.

Despite a great PR campaign waged by Air NZ against Jetstar NZ, Jetstar are doing very well over there, I expect QF is loving turning the screws on them in their homeland...

I refer to your previous comment quoted above. Same thing. Difference is Jetstar is doing it properly (we didn't commit enough aircraft) and had the benefit of a ready made market handed to it by Qantas (JetConnect). I would argue that the only reason Qantas replaced JetConnect with Jetstar is because the losses from JetConnect became too great once we entered the market. Either way the Kiwis can still thank us for bringing low fares to the market

Ask yourself whether strategically if QF would have preferred us to stay in domestic NZ or to team up with AirNZ in an alliance?

 

[jakeseven7]

I think you may be having trouble distinguishing between Pacific Blue's international and domestic NZ operations. No-one has ever claimed that NZ domestic was ever profitable but most of the Pacific Blue network has been most of the time since it was established and certain routes are amongst the most profitable in our entire short haul network. At certain times Pacific Blue has been the most profitable part of our network, but things change: GFC, new competitors, alliance opportunities.....

No actually Dave I think you had that trouble - I'm not having a go AT ALL but I do recall though you being questioned about PB profitability and certainly not 'distinguishing' between the PB international and domestic ops.

Not that I blame you at all with those numbers and your job to promote the brand

 

[crazydave98]

No actually Dave I think you had that trouble - I'm not having a go AT ALL but I do recall though you being questioned about PB profitability and certainly not 'distinguishing' between the PB international and domestic ops.

Not that I blame you at all with those numbers and your job to promote the brand

So, find me the offending quote that you claim is not true. Your claim "I'm not having a go AT ALL" seems a little at odds with the tone in the original post "Interesting given certain members of this board who rep Virgin were claiming Pacific Blue was the most profitable part of Virgin when asked Boy I hope that wasn't true!" Also your snide insinuation "Not that I blame you at all with those numbers and your job to promote the brand " What exactly are you getting at? Not having a go? Gimme a break.

 

[pauly7]

Personally I did not agree with the decision to enter that market. However up until the GFC hit and Jetstar replaced QF Pacific Blue was on track to break even.


I refer to your previous comment quoted above. Same thing. Difference is Jetstar is doing it properly (we didn't commit enough aircraft) and had the benefit of a ready made market handed to it by Qantas (JetConnect). I would argue that the only reason Qantas replaced JetConnect with Jetstar is because the losses from JetConnect became too great once we entered the market. Either way the Kiwis can still thank us for bringing low fares to the market

Ask yourself whether strategically if QF would have preferred us to stay in domestic NZ or to team up with AirNZ in an alliance?

I'm sure QF would much rather have swallowed up NZ

But I guess they are making the best of plan B - which seems to be working for them now. Just as you guys are, pulling out of the market which by the numbers indicates it was the VERY smart thing to do.