Virgin challenges Qantas on US route

[NM]

But they could perhaps codeshare with Virgin America, who were recently established in the USA as a paper airline with their head office at SFO.

Just saw that Virgin America have actually now received the first of 34 A320 family aircraft they have on order. So they are no longer just a paper airline. In the usual tradition of Virgin aeroplanes being named, this one was named "Jefferson Airplane" after the 1970s band of the same name.

Not sure where they are flying or the delivery schedule for the remainder of their fleet.

 

[JohnK]

But they will want to maximise the utilisation of such expensive aircraft, which means we could be in for some interesting new routes and perhaps some interesting fares.

Now what could they possibly be planning....

Whatever it is can only be good for competition.

 

[NM]

Now what could they possibly be planning....

Whatever it is can only be good for competition.

Well, a few options:

• They could go head to head with QF on some key Asia routes such as SIN, BKK, HKG, NRT.
• They could go head to head with JQ on their new international routes such as BKK, HKT, HNL.
• They could leave QF and JQ alone and go for some other Asia routes including China or KUL, ICN, or others.
• With 777-300ER or A340-600 they could target India, Pakistan or Middle East destinations.

Missions that can be completed as a return within 24 hours (i.e. to maximum of 10 hours duration each way) often allow for greatest aircraft utilisation.

So far DJ has shown reasonable judgement in how to introduce new things (routes, services, amenities, loyalty program etc) with a mix of direct competition and trying to open up new opportunities. I expect they will be equally as creative when it comes to expanding their international business.

Just which of these and other options are actually viable needs to be determined by the airline experts. But we armchair "expert-wannabes" can bounce our own thoughts and ideas around.

 

[maninblack]

Well, a few options:

• They could go head to head with QF on some key Asia routes such as SIN, BKK, HKG, NRT.
• They could go head to head with JQ on their new international routes such as BKK, HKT, HNL.
• They could leave QF and JQ alone and go for some other Asia routes including China or KUL, ICN, or others.
• With 777-300ER or A340-600 they could target India, Pakistan or Middle East destinations.

Just which of these and other options are actually viable needs to be determined by the airline experts. But we armchair "expert-wannabes" can bounce our own thoughts and ideas around.

Armchair expert opinion.
SIN no, not a stand alone destination. BKK maybe. HKG no, won't go up against big brother. NRT maybe.
HKT hmm is market big enough. HNL maybe.
China etc I don't know.
India maybe. Pakistan too dodgy. Middle east, can't compete against govt subsidised luxury carriers.
FNJ has to be a growth market eventually, exponential growth possibility.

I think though that they will go for the jugular SYD-LAX, MEL-LAX sure fire year round seats.

 

[NM]

Armchair expert opinion.
SIN no, not a stand alone destination. BKK maybe. HKG no, won't go up against big brother. NRT maybe.

I was thinking they may do HKG from say MEL or BNE to complement the VS service and perhaps codeshare with each other. I agree there is little point in doing SYD-HKG while VS is operating that route. Hopefully DJ will not be quite so SYD-centric as QF tends to be .

I think though that they will go for the jugular SYD-LAX, MEL-LAX sure fire year round seats.

indeed that is where their main interest must lie. Though I would not be surprised to see them focus more on SFO and hooking in with Virgin America and UA for feeder services which will be an important part of their success.

But they may be restricted by the 4 weekly flights limit for a startup, which is going to constrain their entry.

 

[maninblack]

But they may be restricted by the 4 weekly flights limit for a startup, which is going to constrain their entry.

Is that reg 4 flights total or between 2 ports, can they do say, 4 SYD-LAX and 4 MEL-LAX and 4 SYD-SFO etc.

 

[NM]

Is that reg 4 flights total or between 2 ports, can they do say, 4 SYD-LAX and 4 MEL-LAX and 4 SYD-SFO etc.

I don't know if it applies to a specific route or to the whole Aus-US entry.

But there was discussion about Jetstar trying to find a way around it when they were planning SYD-HNL services. I guess we may be able to interpret the JQ schedule including MEL-HNL on Monday and Friday and operating SYD-HNL on Tuesday, Thursday, Saturday as a way to work around the 4 service entry restriction.

 

[Yada Yada]

I was thinking they may do HKG from say MEL or BNE to complement the VS service and perhaps codeshare with each other. I agree there is little point in doing SYD-HKG while VS is operating that route.

Not sure if you saw this a few days ago:

Virgin Atlantic to double London to Sydney service

Virgin Atlantic will double its service between London and Sydney within the next 18 months. Frequency on the kangaroo route will increase from the current seven flights per week to fourteen.

The company's Sydney-based general manager Jonathan Harding said that growing demand for the premium economy class service was the reason for the expansion.

More...

 

[Kiwi Flyer]

That makes no sense. The incremental revenue of premium economy is not by itself enough to justify extra flights. My understanding is VS loads and yield for SYD is low (even to the point of looking at pulling out). Furthermore, with NZ's new service they have additional competition for the market (albeit with extra flight via AKL).

 

[NM]

Not sure if you saw this a few days ago:

Yes, I did see that, and that led me to think one way VS can get to MEL is to codeshare with DJ.