What is Virgin Australia's strategy (post-administration)?

[dajop]

VA lounges, did start in the DJ days and were more basic - but very much on brand. They were improved (both cosmetically and in the offer) when JB took over - at considerable expense though.

 

[AustraliaPoochie]

Not that I know for sure, but what say you, do you think the new owners will pare things back to save money, lounge wise/on board wise/...
By VAi now not operating lounges of their own, and not having any affliated ones, ie, even if flying J over to Apia/Queenstown/Nadi and not having lounges access, they must be saving money.
To sum up, wonder who would want to buy VA3 when the IPO comes out.
Would the Aust public buy into it again, like some did in previous iteration of the shares of VA1/VA2.

 

[HS-TQE]

The MEL, SYD and BNE VA lounges, are all in the location of the former Golden Wing lounges, which VB took over in, nah, they were budget in 2001, weren't they?
The lounges came much later when they upscaled..
Can't believe its been this long.
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Looks like VA lounges started in 2005.
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Cost cutting, would see that they would not open any lounges of their own internationally (again).

VA only opened 1 international lounge though, in WLG. It was some pop-up space upstairs. The lease was returned to the Airport when VA withdrew from most of New Zealand.

The East Coast International Terminals, VA had a contract with No1 Lounges, which that company bought the old EY lounges in SYD and MEL, and rebranded those The House. No1 also established a pop-up space in BNE Int'l called MyLounge.

Subsequently No.1 sold their lounges in SYD/MEL/BNE to Swissport who rebranded those lounges as Aspire.

 

[AustraliaPoochie]

Guess we have to wait and see who buys VA3 off Bain, and what they will do/what will they do to the airline.
Ideally, nothing changes, but maybe the new owner will cut expenses, and go real real budget.
The new buyer will have to want or need a large ROI.
Bain bought VA off the admin for Aud$3.5m, they might aim for $4 m to make good their purchase, and also to to cover the profit they would want (to make it financially worthwhile).
Say, new buy would want to recoup that $4 m fast, if they want to keep their staff happy, they would have to be tough in other areas, maybe their lounges, planes, etc.
Or raise fares, ADL - MEL VA J for $399, they (new owners) might raise it up to $499, QF is asking $500 for ADL - MEL QF J for future (later into 2024) bookings.
Hope who ever buys VA3 will not be too tough on us flyers.
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Maybe the new buyers, will be happy just having access to info of the 11 m VFF members info in Velocity.
Not to mention the info in FB too.

 

[Saab34]

They only paid about $700m for it I recall. They have already paid themselves back from memory, funded by Virgin itself and banks.

The Bain windfall will obviously be significant, the executives can retire and live life on tens of millions once the transaction is complete, but the future is still under a cloud.

The issue is the next person who starts tinkering with it. The future of this business is still as unknown as ever.

 

[HS-TQE]

Obviously if Bain was in it for the long haul, then they might have considered walking away from the brand, but they are most certainly not here for the long haul! Many didn’t think they would still be hanging on this long.

Let's not forget this period last year (Dec/Jan 22/23) that some of the posters (on this forum with their insiders) and their fans claiming that "VA WILL be listed in 2023!".

Taken both the external (outside factor) issues and internal (Bain self-inflicted) issues in 2023, what a 'epic' failure that "prediction" was.

 

[AustraliaPoochie]

Their (Bain's own) outlay might be $700m, but the total paid, is $3.5b, eh?
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If Bonza and Tiger can have that name, how about Air Kanga for VA's new name?
They could reprise Tiger if they really wanted to, eh?
Cool, eh?

 

[HS-TQE]

Their (Bain's own) outlay might be $700m, but the total paid, is $3.5b, eh?
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If Bonza and Tiger can have that name, how about Air Kanga for VA's new name?
They could reprise Tiger if they really wanted to, eh?
Cool, eh?

They'll have to cough up Royalty Fees to Scoot (brand owner) to use the Tiger name, can't see that happening in such a scenario.

I'd have to go with the others suggestion of using "Velocity Airlines" which iirc Velocity is a VA trademark rather than a Virgin Group wide-trademark like Virgin and predecessor V Australia.

 

[Saab34]

Let's not forget this period last year (Dec/Jan 22/23) that some of the posters (on this forum with their insiders) and their fans claiming that "VA WILL be listed in 2023!".

Taken both the external (outside factor) issues and internal (Bain self-inflicted) issues in 2023, what a 'epic' failure that "prediction" was.

It would be fair to say that VA screwed themselves over in 2023. Hardly a business ripe for a listing. If they didn’t do that, well then perhaps they might be public already.

They are likely still a year away from sorting out all the issues they seem to have.

Perhaps show investors what improved headway they can make this year to prove it’s a better business, not the lame old duck that was listed for past decade and a half.

Confidence was lost last calendar year. Not sure when that will rebuild. Would have seen serious profit erosion in the last half with all the issues, unknown if the expected blaming weather, crew striking, atc and so on, will convince investors it’s just a short blip.

 

[p--and--t]

I sincerely hope VA makes it under new ownership in one form or another as we need a viable healthy competitive alternative to QF/JQ.

I might have a jaundiced or ill informed view but I don't think that is REX is the new major competitor even tho my limited 737 experience with them was good and they seem to have their act together much more than VA.

But jeeez VA have some things to sort out. Their recovery from any form of hiccup at all is a total embarrassment, those “all Y” planes with the very tired fitout / broken seats and disgruntled crew who are only too willing to make their dissatisfaction with management known to passengers at the first opportunity.

 

[Harrison_133]

It appears they are standardising the VARA A320s to a 180 economy seat configuration.

VNF and VNJ have been reconfigured and are now flying around with 180 seats, still with the original Tiger cloth ones.

VNB and VNP remain in the 168 seat configuration for now.

 

[elanshin]

I think one of the biggest things VA had to work out is just what the airline wants to be. The last 12 months very much felt without an actual direction rather just "you don't like QF? Well we're here". The best I feel it is right now it's a value operator that kind of still has some premium parts but doesn't seem to know where it's going.

This could be because Bain is supposed to be an interim owner and they don't want to be the one to come up with a strategic vision for VA.

 

[twinaisle]

"you don't like QF? Well we're here". .

I'll pitch this to the company. Sounds better than "bring on wonderful"

 

[AustraliaPoochie]

Cancellations due too lack of staff.
Weather - unavoidable.
Air Services Aust - unavoidable.
Pilots and cabin crew - avoidable by having spare pilots and cabin crew.
Cutting cost and Saving money is still important to them,...

 

[Bagpuss]

Cutting cost and Saving money is still important to them,...

If they cancel a flight due to factors within their control, how do they save money?

Example, you paid $150 for a flight from Sydney to Melbourne. You claim $200 for a hotel ... OK I'll stop there before everything else of transport, meals etc. Even if you paid $300 for a flight, remember that includes airport fees etc.

Then they still have to fly the person to the destination which involves the airport fees, fuel burn, potential loss of last minute fare sales as aircraft full, potential re-routing which add in more airport fees, status credits etc etc.

I know I didn't get grade A at maths, but I'm sure there are deep un-insurable losses.

(Add on top paying staff who were available and paid, fixed costs for aircraft etc.)

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[Bagpuss]

It appears they are standardising the VARA A320s to a 180 economy seat configuration.

VNF and VNJ have been reconfigured and are now flying around with 180 seats, still with the original Tiger cloth ones.

VNB and VNP remain in the 168 seat configuration for now.

They sure are and I was recently on VNJ. The re-config messes with the economy x seating at the over wing exits.

If you're in the original second row of economy x of the over wing exits, you stay "as is" as you're now in the first row (still economy x).

If you're in the original first row of economy x of the over wing exits, they will swap you with the row of the original first row of economy after the the two over wing exits. (So you are then in the second row of economy over wing exits.)

(Simple when it happened, a bit hard to explain!)

Post automatically merged: Jan 8, 2024

The best I feel it is right now it's a value operator that kind of still has some premium parts

I'm pretty sure that's what they exactly said what they came out of administration in 2020.

 

[Harrison_133]

If you're in the original second row of economy x of the over wing exits, you stay "as is" as you're now in the first row (still economy x).

If you're in the original first row of economy x of the over wing exits, they will swap you with the row of the original first row of economy after the the two over wing exits. (So you are then in the second row of economy over wing exits.)

(Simple when it happened, a bit hard to explain!)

Similar process applies for the new 737 configuration.

When I flew on it recently, the people in Row 16 were complaining how they originally selected Row 15. In reality, they were still sitting in the same spot they had selected, it's just been renumbered.

It's a bit hard to explain too, but essentially Rows 15-30 become Rows 16-31. Exits become 14 & 15, and the 'new' row is Row 13. Not sure what you're allocated if you've got an Economy X selection for Row 5.

At least they've identified this as an issue and are making sure you still get your Economy X seat. Previously the system wouldn't pick up on such a nuance, especially with the different A320 configurations, and you'd be stuck with a standard seat.

 

[AIRwin]

it's just been remembered

They didn't forget

 

[Harrison_133]

They didn't forget

Time to put my glasses back on...

 

[trisreed]

They sure are and I was recently on VNJ. The re-config messes with the economy x seating at the over wing exits.

If you're in the original second row of economy x of the over wing exits, you stay "as is" as you're now in the first row (still economy x).

If you're in the original first row of economy x of the over wing exits, they will swap you with the row of the original first row of economy after the the two over wing exits. (So you are then in the second row of economy over wing exits.)

(Simple when it happened, a bit hard to explain!)

I was on VNP in November and it went tech so we were re-accommodated on VNR - Econ X 'moved' from the row behind me to the row in front of me (apparently I was in Row 12) - suffice to say (and the point of my post) was there was a very annoyed row behind me and a very pleased row in front of me (or perhaps vice versa, if my memory fails me). The FA suggested to those seated behind to contact VA to request a refund as they had paid for the privilege - guessing it was not possible to just flip the rows.