Virgin Blue chief stays the course in dogfight

[Mike W]

I'm not convinced. Borghetti claims to be a new-age carrier but his actions indicate anything but. It sounds to me like DJ is regressing into just another airline doing more of what other Airlines do. The fleet type increases, alliances and business class activities seems like it's more and more like Qantas and co.

What happened to that youthful go-getter, start up Airline from a few years ago? It this what it means to survive or make money in 2011 and beyond?

[Hugh Jarse]

I think you'll find that "New World Airline" was a Godfreyism, not from Borghetti. He appears to have avoided that idea completely and gone a little more "mainstream" in his company direction.

I've dealt with him before in a previous airline life, and am happy to have him at the helm in my current. He is a man of action, doesn't suffer fools, and is a fair boss. Qantas' loss, actually :D

Quite the opposite to what they have on their management "team" over at the sheltered workshop that is Qantas.:D

[D Chan]

I still think the A330 will add further complexities to their operations (737s, Ejets, 777s and soon A330s), though going mainstream is a good move. I think the partnerships with Etihad is an interim strategy to make better use of the 77W (instead of being flown to Phuket or Jo'burg) for the time being until they figure out where they want to expand/grow internationally in the next 5 years (the big question mark is where in Asia). This role/challenge will keep JB busy for at least the next 3 years if not more.
JB is also very well connected and will use his influence to his advantage, the Etihad/Air New Zealand/Delta strategies are great examples. It's a good case of befriending your competitor's competitors.

The best way of figuring how well they do in 2011 and beyond is to look at their share price.

[Mike W]

I think you'll find that "New World Airline" was a Godfreyism, not from Borghetti. He appears to have avoided that idea completely and gone a little more "mainstream" in his company direction.

I've dealt with him before in a previous airline life, and am happy to have him at the helm in my current. He is a man of action, doesn't suffer fools, and is a fair boss. Qantas' loss, actually :D

Quite the opposite to what they have on their management "team" over at the sheltered workshop that is Qantas.:D

Thanks Mate. I hear you, yet despite your optimism, I'll wait and see how he goes. Really, I've enjoyed their fun 'no problem' approach since they stated. I'd hate to see them lose that and become a Qantas clone or worse.... Ansett.

[Andrew M]

I am not sure what forum I read this on :rolleyes: .... but someone hinted that Virgin Blue was going to get Turbo Props...

Now they are!!! :eek:

ASX Link

Virgin Blue and Skywest - 10 year partnership - 18 new Turboprops!

http://www.asx.com.au/asxpdf/20110110/pdf/41w3df1l79dkrn.pdf

[Mark B]

Any idea what the specific aircraft they are planning on using. The release doesn't give much away!

[Ryan M]

Any idea what the specific aircraft they are planning on using.
Lots of rumors around point the ATR-72 being the aircraft. I'd believe it when I see it though.

[D Chan]

that's a fairly smart arrangement - it's similar to the US/canada style regional airline outsourcing arrangements. As to the props it probably comes down to ATR72 vs Dash 8-400s?

[Radi K]

why you would get rid of the E170s and replace them with ATRs/Q400s is counterproductive I suggest .. just my thoughts..

[Rob R]

Why, the 170's and for that matter any jet will not make money on routes less than 200- 250 miles. Plus flight times over such short routes are within 5-10 mins of a jet while burning a lot less fuel whist carrying the same number of passengers.

[Justin L]

Also, wouldn't the props allow for a greater number of airports/destinations than jets due to runway lengths?

[Brock Little]

Definitely.

I also hope they start some routes from OOL...I miss the airline turboprops...

Major QantasLink routes and some current E170 routes will probably see the new TPs deployed on though. SYD-CBR - most likely.

[Jarden S]

That will save the TSV-CNS route from getting the chop....

[Ryan K]

Definitely.

I also hope they start some routes from OOL...I miss the airline turboprops...

Major QantasLink routes and some current E170 routes will probably see the new TPs deployed on though. SYD-CBR - most likely.

It will be interesting to see what happens in ports like LST that are currently serviced by DJ 737's, however are going head to head with QF Q400's and JQ 320's. If DJ goes more upmarket will it try and compete with QF, or still try and give JQ a run for its money...?

[Jayden Laing]

If DJ goes more upmarket will it try and compete with QF, or still try and give JQ a run for its money...?

Ryan,
Virgin Blue will always remain in the leisure market with JQ but Borghetti also wants to lure in some business travellers by atleast offering some sort of a business class type seating in the A332's. Therefore this is hoping to allow him to try & run with both QF & JQ.

[Arthur T]

If Virgin Blue is to remove its E170s on SYD-CBR route and replace with TP Aircrafts, I will be the first passenger to walk out Virgin Blue and to take Qantas instead.

I took DJ on a return SYD/CBR in early December last year and the loading was 100%, I wonder whether that would be reduced once it has been replaced by TP aircrafts. I choose DJ is because they are using Jet Aircrafts to operate on this route, which means more reliable and Jet Aircrafts are often regarded from a normal passenger (not plane athenuists) point of view. Jet Aircrafts belongs to the 21st century whilst TPs are just an old concept and often passengers feels reluctant to travel planes which are not of the modern era.

Hence, as being a commuter on the route, think I will opt to catch a Boeing 737-400 over a TP, even if it is brand new.

[Grant Smith]

Hence, as being a commuter on the route, think I will opt to catch a Boeing 737-400 over a TP, even if it is brand new.

Ironic considering your usual rants about the safety of SQ 744's...

:rolleyes:

[Chris W]

plane atheists?

[Maikha Ly]

I choose DJ is because they are using Jet Aircrafts to operate on this route, which means more reliable and Jet Aircrafts are often regarded from a normal passenger (not plane athenuists) point of view. Jet Aircrafts belongs to the 21st century whilst TPs are just an old concept and often passengers feels reluctant to travel planes which are not of the modern era.I guess you and these passengers won't ever fly on Rex then :p

[Matt_L]

haha yea Maikha and maybe he can exclude over 1000 planes in the USA (dozens of airlines or about 30%+ there) of the aviation industry/rpt flights made up by turboprops

[Ryan Hothersall]

I guess you and these passengers won't ever fly on Rex then :p

Or Qantaslink, Sharp and many other regional airlines that operate turboprops.

Edit Does Arthur realise that Qantas/Qantaslink use the Dash 8 on Sydney Canberra?.

[Andrew T]

Or Qantaslink, Sharp and many other regional airlines that operate turboprops.

Edit Does Arthur realise that Qantas/Qantaslink use the Dash 8 on Sydney Canberra?.

Qantas operates 12 flights between Sydney and Canberra every day and amongst these 12 flights, only 2 are operated by a 737-400 and both operate in the evening! So there's not much choice if he ever needs to be in Canberra in the morning/afternoon unless he flies in the night before! ;)

[Ash W]

What about QF803 and QF787 in the morning? Most days of the week these too are 734's with the odd 73H running.

[Justin L]

Let's get this back on topic please.

[Andrew M]

Virgin share price back down to 0.415 today.

Down 3% - Not sure why

[Michael Dawson]

Not a very good indication Andrew, the majority of the market was down in Australia today. The floods will have a impact on a lot of shares at present. The comment about tourism taking a impact from this with cancellations coming in already. This type of comment will cause people to evaluate there stocks.

Michael

[Andrew M]

ASX 200 was up about 0.75%

Qantas was up 0.80%

Suncorp insurance was UP.... 1.5%....

I think that says more.

Virgin down - But with no news released..... Wonder if any major investment firms said sell ?

[D Chan]

this may have to do with the DJ share price:

http://www.theaustralian.com.au/business/city-beat/higher-fuel-costs-compound-issues-at-qantas/story-e6frg9no-1225990275086

Macquarie also downgraded its earnings forecasts for Virgin Blue, which it has a “neutral” on, due to the raised fuel price assumptions, pushing its share price down half a cent to 42.5c.

But of the two, the bank prefers Qantas, due to its options to manage capacity between its domestic, international and Jetstar operations.

The economic impact of the QLD floods will also have some impact on the share price

[Andrew M]

Thanks D Chan

0.400 for VBA today!

[D Chan]

analysts (from Macquarie Bank) have also dropped their forecasts for both Qantas and Virgin Blue FY10/11 profit before tax.

[Brock Little]

Hopefully their share price will rise again once they relaunch...