View Full Version : Virgin Blue reduce domestic capacity 8%
Michael Morrison
17th February 2009, 05:14 PM
400 Full Time Equivalent jobs are on the line
http://www.asx.com.au/asxpdf/20090217/pdf/31g36bd7235l5g.pdf
5 aircraft will be parked for 2009.
Brad Myer
17th February 2009, 05:38 PM
What flights/routes will be cut?
There are no details....
Michael Morrison
17th February 2009, 05:43 PM
What flights/routes will be cut?
There are no details....
I presume these will be announced with their results next week??
Brendan McKenna
18th February 2009, 08:35 AM
If I was a DJ employee, I would be rather disappointed with the company leadership in offering $1 fares one month and laying off 400 staff the next...
Ellis Taylor
18th February 2009, 09:05 AM
If I was a DJ employee, I would be rather disappointed with the company leadership in offering $1 fares one month and laying off 400 staff the next...
Then it's probably a good thing you're not! The fact of the matter is that the discount airfares are out there because the market needs stimulating because the aircraft aren't filling up as quickly as they were a year ago. It's true that $1 fares are really a gimmick to get people in and there aren't a lot of them - it's usually those seats which would have gone empty anyway. Nevertheless, the person who bought a $1 airfare may then buy a meal or a drink on board, in which case it may cover some more of the cost to the airline.
Brendan McKenna
18th February 2009, 03:08 PM
I understand your logic and agree that the market must be stimulated in various ways. But for every $200 seat that you give up trying to sell, you need to sell 200 of them at $1 to generate the same income. As soon as you have sold any of those seats at the discount rate, you have lost the chance to sell them at the regular rate.
I would love to see some data which illustrates how many people decided to jump on a flight purely to utilise a discount fare vs those were who were planning to fly from A to B anyway and by pure luck managed to score a cheap seat instead of the regular fare that they were expecting to pay.
Michael Morrison
18th February 2009, 03:13 PM
I understand your logic and agree that the market must be stimulated in various ways. But for every $200 seat that you give up trying to sell, you need to sell 200 of them at $1 to generate the same income. As soon as you have sold any of those seats at the discount rate, you have lost the chance to sell them at the regular rate.
.
It is not just the seats they sell in these promotions - it is also the PR.
- People talk about
- Rmeinds people that cheap fares can be had with Virgin etc
I'd say most of the people buying these fares wouldn't have flown the trips without the sale.
And as was noted above - once bought, Virgin have the ability to
- Sell baggage $20
- Live TV $4.90-10
- Food (say $12 for a sandwich & Wine)
So that $1 fare could well turn into a $42 fare.
I also reckon a few people book them and don't actually fly - I have done this with a $1 JQ sale before.
Brendan McKenna
18th February 2009, 03:18 PM
PR can work both ways though - I know a few people who have responded to an ad campaign; jumped onto the internet to book a flight and found nothing available. Has generated a vision of bait advertising.
Michael Morrison
18th February 2009, 04:51 PM
jumped onto the internet to book a flight and found nothing available. .
Jetstar springs to mind!
Greg F
18th February 2009, 05:52 PM
Jetstar springs to mind!
it does indeed! however I recently got a ticket to HBA for $9 each way BUT NOT VIA WWW, but the call centre.... and they didn't charge me a booking fee....... (friday fare frenzy)
Tom PER
19th February 2009, 07:02 PM
This has appeared on one of the databases:
776 30740 NEW B737-7BX VH-VBT Stored at Melbourne (MEL) Virgin Blue Airlines ex N365ML Midway Airlines (1993)
Dan Hammond
19th February 2009, 09:09 PM
This has appeared on one of the databases:
776 30740 NEW B737-7BX VH-VBT Stored at Melbourne (MEL) Virgin Blue Airlines ex N365ML Midway Airlines (1993)
From what i here its currently sitting in John Holland Hangars with no paint
Jarden S
21st February 2009, 07:55 PM
Does anyone know which flights will get canned? I guess a lot of flights will go if they reduce capacity by 8%.
Lukas M
21st February 2009, 08:05 PM
Does anyone know which flights will get canned?
Dont think anybody knows besides those on the Virgin Board. Anyway, so far, Canberra and Sunshine coast airports say they are apparently safe. According to pprune, Adelaide-Hobart is gone. Had a quick look on their timetables and it does appears no longer from the end of April. I think Tasmania and Adelaide could be in for some big cuts....have to wait until Monday I guess.
Where is there too much frequency? That could be the problem perhaps...Any Virgin Blue member care to elaborate on these reductions?
Marty H
21st February 2009, 10:23 PM
Dont think anybody knows besides those on the Virgin Board. Anyway, so far, Canberra and Sunshine coast airports say they are apparently safe. According to pprune, Adelaide-Hobart is gone. Had a quick look on their timetables and it does appears no longer from the end of April. I think Tasmania and Adelaide could be in for some big cuts....have to wait until Monday I guess.
Where is there too much frequency? That could be the problem perhaps...Any Virgin Blue member care to elaborate on these reductions?
Routes between MEL and HBA and LST wont get cut the pax numbers are very good plus the freight is high volume also. Nobody will know anything until at least the beginning of April as the five aircraft arent being taken out until the 1st of May.
Adelaide has already lost capacity with the introduction of E190's on some MEL-ADL services.
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