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What other benefits will VA cut?

Harthagan

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What are the most likely perks to be on the chopping block? Seems like so far they have (strangely) been aiming squarely at the pointy end of the plane. By that "logic" they may next be coming after platinum members lol

As a recent platinum I'm nervously waiting for January before requesting my Hilton status upgrade. I just hope they don't scrap it in the meantime :(
 

ozstamps

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''Be careful what you wish for. ''

And starting a new thread suggesting 20 things Virgin never even thought about, is never wise IMHO.

You'd be amazed who reads BBs from airline brass.

Every useful lurk and perk posted on any board soon vanishes, is my 20 years experience on airline BBs
 
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moa999

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I suspect 'enhancements' to Velocity once they go to 100%.
I suspect these weren't possible whilst there was outside ownership.

Possibly a US-style/AirNZ/LCC baggage policy
 

jakeseven7

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Redemption point increases will be next off the rank for sure i reckon, certainly once Velocity deal is completed...

I honestly think they might revert to 100% cash pay catering in Y again (after the cut back in J catering)
 

levelnine

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I wonder if they will seek to imitate Air NZ to a greater extent.

For example:

1. Decrease the value of the frequent flyer program (ie move it to a revenue model)
2. Move to all-economy seating on some planes
3. Try to create a more 'funky'/'hip' vibe closer to that of the old Virgin Blue days
 

dajop

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The challenge VA will have, whatever they do, is they are in between QF and JQ. Do they go down to JQ level? Do they play both sides with the same brand like the US carriers, BA, NZ etc. In the loyalty space, VA don’t have the market power like NZ has, who are even more dominant in New Zealand loyalty market than Qantas are in Australia.
 

Happy Dude

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Perhaps they might bring in less attractive staff willing to work for lower pay?
 

Saab34

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They already outsource half the ground network to third party providers. Virgin/Tiger is Swissports (was aerocare) largest customer.

MEL/BNE/SYD Dom ground crew are all VA direct.

There is not much they can do around Cabin Crew and Pilots. With the latter being an ongoing cost pressure as time goes on.
 

Saab34

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I have never seen anyone on the computers on any lounge. Maybe get rid of them. I think some quieter lounges in quiet times will see food, staff cuts. High end branded bathroom supplies gone.

A WiFi free cap. In Mb or time. Then charge.

I think the newspaper stands in terminals could go. I don’t think people will be switching carriers over newspapers. Free papers to those up the front.

Also a new fee for increased carryon. A big winner over at JQ. $10 for 10kg carryon or something, free for Gold or Plat.

Considering they never use it give the space in Sydney’s lounge upstairs level back to the airport. What a waste of leasing this space which I can imagine would be quite a bit!

Get rid of Valet? Hardly a booming and lucrative venture.
 

dajop

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Lot of people suggesting cuts to their domestic offering. But it’s the profitable part of the business (along with Velocity). So what does all this tinkering around the edges achieve for VA - when surely the quick win is to close down Tiger and the big win is to sort out international. Playing around with things like wifi limits, newspapers, toiletries is a bit futile unless they start addressing the elephants in the room first.
 

Saab34

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I wouldn’t call a $1m+ (Rough numbers would have it more at $2m) Newspaper bill yearly a light expense!
 

jakeseven7

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Lot of people suggesting cuts to their domestic offering. But it’s the profitable part of the business (along with Velocity). So what does all this tinkering around the edges achieve for VA - when surely the quick win is to close down Tiger and the big win is to sort out international. Playing around with things like wifi limits, newspapers, toiletries is a bit futile unless they start addressing the elephants in the room first.
Sure - but VA are fueling this speculation of more cuts in service to domestic because that is where they have started cutting which I agree is strange (excluding the mass firing of people at head office)

BUT the big wins you mention - Tiger and International are BIG BIG decisions so I suspect they are definitely in the works but given the $ involved and complexity, probably taking some time to sort out.... And now this Japan surprise for International... :oops: :oops:
 

sometime_flyer

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The new CEO has publicly stated that he'll announce the new VA Group strategy in Nov this year following a major review of the business. You'd have to think that everything is on the table. The only thing that i think is abundantly clear already is a determination to achieve profitability.
 

CPMaverick

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I wouldn’t call a $1m+ (Rough numbers would have it more at $2m) Newspaper bill yearly a light expense!
Has this number been verified or stated anywhere?

I was under the impression that newspapers gave away a lot of product in order to keep their circulation up; advertising, not subscribers, is their largest revenue source. Hotels and airlines have premium customers that advertisers want to reach.
 

esseeeayeenn

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I think the newspaper stands in terminals could go. I don’t think people will be switching carriers over newspapers. Free papers to those up the front.
The airlines don't pay for the newspapers, they're free, so no opportunity to cut costs there.
 

Must...Fly!

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Ditch Tiger, admit defeat. Take the economy offering down a notch to better compete (Y Basic fares, etc). If 737s then become too numerous, sell them or return them from lease. The airline has enough empty planes taped up, sitting around.

Don't touch Velocity, the extra carrier charges are a significant additional expense and further changes risk eroding loyalty at a time when it can be least afforded.

Japan would be a really important win for them in a partnership with ANA, and maybe open up an additional gateway in to Europe. SQ might just have to wear that for the greater financial good of the VA group.

Keep working on optimising the fleet and work it harder, the A320s are getting more use and that's a good thing. Work dilligently on folding VARA in to main line from a management perspective, that this was allowed it's own chiefs and indians for so long is one of the things that should have been fixed years ago.

Now I have kind of ranted, I realise I haven't really mentioned what other benefits will be cut. Mostly because I'm not super sure there are many to cut?

Absolutely they should ditch the snacks in economy if it's costing them any money other than fuel. They're useless. Keep the free coffee/tea/water/juice, because totally BoB is too far.

Go back to the Virgin roots that made VS so successful. Be cheeky. Be bold. Be different.
 
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HS-TQE

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A suggestion is that the TT/VARA A320s could probably be used on mainline work (outside of FIFO work) on routes where 'J' may not be justified whatsoever (or supplement on the trunk routes during times where J demand is lower).
 

CPMaverick

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A suggestion is that the TT/VARA A320s could probably be used on mainline work (outside of FIFO work) on routes where 'J' may not be justified whatsoever (or supplement on the trunk routes during times where J demand is lower).
That's a good way to ruin your brand. When J becomes something that can evaporate with a schedule change, you book J on another airline. When your EconomyX benefit gets taken away on a whim to save a quick buck, you don't bother retaining your status. I've flown both the initial VARA A320s and they are absolute garbage. Not sure about the newer ones but they are a clear step down from the 737.

I had a flight from POM-BNE booked last month and it got replaced with an Alliance Fokker. I was not impressed, although at least it still had J and reasonable legroom, so better than VARA. But if this becomes the new normal, I will say goodbye to VA.
 

jakeseven7

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The VA A320's are horrifically uncomfortable, in terms of seats as well.

I agree with the comment above on mixing them with J/Y 737 routes.
 

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