Virgin's war chest to attract the lucrative corporate and government passenger sector

[robs12]

"It means Virgin can continue its strategy to move the airline upmarket and snatch market share from Qantas in the lucrative corporate and government passenger sector."

Read more: Virgin boosts war chest for air fare battle
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So I just asked them for a status match (to QFF WP or *A Gold, don't mind which really... ) in the hope that they do actually want to attract customers like myself..

No chance.

 

[Anna]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

What airline status do you have that you were asking VA to match?

 

[777]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

The fact that they aren't handing out status like lollipops these days is probably a good thing. The lounges are full so it may even be a good thing in the context of their specific battles for commercial travel to limit status offers to increase its value. They have given plenty of free status away in the past and i think letting those people not booking serious travel flush through the system is a good idea. However, if you are willing to prebook a certain amount of business or take a company account to them status can be obtained.

 

[Simo]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

I am guessing VA is really wanting to win some large corporate accounts.

VA has been targetting mining areas by adding them to the network where there is a large volume of corporate business and also they can get higher average fare per pax than they can on Golden Triangle fares.

 

[777]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

I am guessing VA is really wanting to win some large corporate accounts.

Indeed. Corporates have no problem getting status if they move their business over.

 

[MarkD]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

Don't really see them as "upmarket" when the product is so variable. Nobody knows whether they have to pay for a drink/if they get one for free etc depending on what flight or even aircraft type you are on. Its not an upmarket product when you need to get your wallet out for even a soft drink. Its still very much LCC, unless you pay for Business. I don't have a problem with this, Im a firm believer in user pays, but please don't call Virgin upmarket.

 

[hummel]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

Don't really see them as "upmarket" when the product is so variable. Nobody knows whether they have to pay for a drink/if they get one for free etc depending on what flight or even aircraft type you are on. Its not an upmarket product when you need to get your wallet out for even a soft drink. Its still very much LCC, unless you pay for Business. I don't have a problem with this, Im a firm believer in user pays, but please don't call Virgin upmarket.

I tend to agree. Virgin need to provide food/drink on all routes if they want to compete with QF. The fares aren't *that* much cheaper anymore.

I'm a VA WP, and since qualifying for that in June.. I've earnt 60SC's and have now put some of my flying to QF. There is no recognition what so ever of the loyalty shown by SG/WP to VA.

 

[serfty]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

"Nobody knows whether they have to pay for a drink/if they get one for free etc depending on what flight or even aircraft type you are on."

To be fair, the same can be said for Qantas domestic when it comes to alcoholic drinks.

...

I'm a VA WP, and since qualifying for that in June.. I've earnt 60SC's and have now put some of my flying to QF. There is no recognition what so ever of the loyalty shown by SG/WP to VA.

I am WP on both and at least a VA WP can easily preallocate a seat in the front row of economy - that's a basic bit of recognition.

 

[lovestotravel]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

It's more of matter of VA having enough cash to pay the bills more than anything else!

SQ, EY and NZ are just circling around VA like vultures!

VA can only bleed money for so long, it's actually quite worrying

 

[MarkD]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

I don't know enough about their finances etc, my opinions based purely on my experience and thoughts as a Platinum over 100 flights last year. Unfortunately, due to a change in career, Im now pretty much grounded and will not requalify this year, in fact apart from a couple of J reward flights booked for Holidays, I think I will be lucky to do 4-6 flights this year, so to me, if I can get a free soft drink and sanga for the same price on QF, I will use them. Having said that, a lot of times on Short flights (BNE-SYD etc), on flexi's I have declined the included meal offering and only taken a coffee, which is complimentary anyway, so I guess Im nit picking

 

[dk4]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

It's more of matter of VA having enough cash to pay the bills more than anything else!

IMO no.

At $80M it may have been, but at $350M - it is sending a signal to QF that Virgin's owners have deeper pockets than QF, and QF will not win a capacity war.

 

[pauly7]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

IMO no.

At $80M it may have been, but at $350M - it is sending a signal to QF that Virgin's owners have deeper pockets than QF, and QF will not win a capacity war.

Well not in the case of NZ.

But certainly a quasi government airline in SQ and an airline sitting on top of an oil field in Etihad certainly have enormous advantage over the QF group.

It's actually pretty 'unfair' especially given QF is restricted by the QF sales act compared to VA. I'm sure QF will be bringing that up with the new government!

I suspect an EK $ alliance will probably be on the cards for QF.... That's in my crystal ball anyway.

 

[dk4]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

It's actually pretty 'unfair' especially given QF is restricted by the QF sales act compared to VA. I'm sure QF will be bringing that up with the new government!

Qantas deserves no consideration from the government, until it surrenders market share.

IMO a two third market share is too much for any business to hold, in an open market place. (It makes QAN a company which is "too big to fail", and IMO all such companies need significant regulations and restrictions placed on them.)

Qantas should never have embarked on a capacity war, it was poorly conceived (on a number of levels) from the outset.

IMO Qantas should only be given consideration for regulatory change (with removal of various restrictions), once its market share drops below 40%.

 

[lovestotravel]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

IMO no.

At $80M it may have been, but at $350M - it is sending a signal to QF that Virgin's owners have deeper pockets than QF, and QF will not win a capacity war.

EK > EY/NZ/SQ

Remember that Qantas domestic and Int being split..... There is a reason for that!

 

[lovestotravel]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

Qantas deserves no consideration from the government, until it surrenders market share.

IMO a two third market share is too much for any business to hold, in an open market place. (It makes QAN a company which is "too big to fail", and IMO all such companies need significant regulations and restrictions placed on them.)

Qantas should never have embarked on a capacity war, it was poorly conceived (on a number of levels) from the outset.

IMO Qantas should only be given consideration for regulatory change (with removal of various restrictions), once its market share drops below 40%.

Surrenders market share ?
Remember VA has upped capacity as well so was that idea poorly conceived as well ?
So VA can opening let any other airline invest in them but QF can't ?

 

[dk4]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

EK > EY/NZ/SQ

Remember that Qantas domestic and Int being split..... There is a reason for that!

I agree with you here.

IMO EK should be allowed to purchase QFi (if it wants to). On numerous levels, Australia does not have the environment necessary to support a major independent international flag carrier, being based here.

Jetstar should be spun off into an entirely independently owned entity as well.

Which then leaves QFd, and should its market share fall below 40%, then IMO restrictions on it removed... But until that time, it is in the national interest for the restrictions to remain.

 

[dk4]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

So VA can opening let any other airline invest in them but QF can't ?

Yes.

Until such time that QF is no longer "too big to fail", i.e. has a market share less than 40% IMO.

Remember VA has upped capacity as well so was that idea poorly conceived as well ?

No.

It is only QF that should be comprehensively stifled until its market share drops below 40%, IMO it is in the national interest that we have a more competitive market place. And we should downsize companies that are "too big to fail", or alternatively apply special restrictions and regulations to them.

 

[lovestotravel]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

It is only QF that should be comprehensively stifled until its market share drops below 40%, IMO it is in the national interest that we have a more competitive market place. And we should downsize companies that are "too big to fail", or alternatively apply special restrictions and regulations to them.

I get what you are saying and it should apply to Woolies and Coles but as for the airlines no! But the ACCC is gutless and people shop on price but that's groceries (wrong thread)


QF should be free to let anyone invest in them, remove the pathetic outdated restrictions! As you have said we (Australia) can't support an international airline with our high wages/costs/depreciation schedule etc anymore and it's a matter of time before QFi is spun off anyway.

I'd be very happy for EK to be running QF and SQ to be running VA, although you would lose the One World alliance if EK took over QF which would be very very sad

But to have 2 world class airlines running QF and VA would make things much better

Then let JQ and Tiger compete for the leisure/low end/budget traveler

I still feel that VA is stuck in a rut, not a LCC and not a full service carrier, yet their prices are very similar to QF.

The Aus aviation industry will be very different in 3-5 years!

 

[Isochronous]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

"Nobody knows whether they have to pay for a drink/if they get one for free etc depending on what flight or even aircraft type you are on."

To be fair, the same can be said for Qantas domestic when it comes to alcoholic drinks.I am WP on both and at least a VA WP can easily preallocate a seat in the front row of economy - that's a basic bit of recognition.

Not having free alcohol doesn't make QF LCC. In fact I'm glad it's not free as otherwise it would increase everyone's fare - unfair on people like me who don't drink that much, especially not on planes.

 

[ReLoad]

Re: Virgin's war chest to attract the lucrative corporate and government passenger se

It is only QF that should be comprehensively stifled until its market share drops below 40%, IMO it is in the national interest that we have a more competitive market place. And we should downsize companies that are "too big to fail", or alternatively apply special restrictions and regulations to them.

Are you Darryl Kerrigan? If not "tell him he is dreaming"
I know I shouldnt feed the troll, but.....
So all the companies that are too big to fail we should downsize? Banks? Mining Companies? Insurers? Health care? Research? Food production? transport?

Back on topic:
If VA was any good it would have taken the market share away from QF, it has been there ready to be plucked for a long time, it has been plucked internationally, with all the asian carriers sending QF's intl operations down the drain. But VA hasn't for a host of reasons, and until it does something about it, its never going to increase its market share or shrink QF's no matter how cough QF is.

The choice here is VA's to make.