Thursday, October 31, 2013

Gossip: How long Virgin Australia to start new service in Asia???!

Virgin Australia is the second largest airline in Australia after Qantas. The airline was established in 2000, which was known as Virgin Blue. The airline was co - founded by Richard Branson and former's Virgin Blue boss, Brett Godfrey. Initially, the airlines' business model focused on low - cost carrier and has changed its business to premium airlines in 2011.  Since then, the airlines has changed its name to Virgin Australia (also merger of its units of Pacific Blue and V Australia) The airline is currently owned by 4 airlines: Virgin company, Air New Zealand, Singapore Airlines and Etihad Airways of Abu Dhabi. The airline is operating to cities in Australia and New Zealand from its main bases in Sydney, Melbourne and Brisbane.


Most international long - haul flights were previously flown by Virgin Australian's subsidiary, V Australia to Los Angeles, Johannesburg, Nadi in Fiji, Abu Dhabi and Phuket. However, the some routes were stopped especially to Nadi and Johannesburg due to less demand. Since merging its parent company, Virgin Australia inherited V Australia's five Boeing 777 - 300 ER and also added 7 brand new Airbus 330 - 200.
from ausbt.com

Current International service
The airline is currently flying to several cities to Abu Dhabi, Phuket, Los Angeles and Denpasar - Bali from its bases in major Australian cities. The numbers served (especially in Asia) by the airlines is far less than Qantas. Qantas is operating to several cities in China, Japan, Hong Kong, Thailand, Dubai and many more. Thus, most passengers originating from Australian choose to fly Qantas and other Asian airlines. The established partnership of Qantas - Emirates has affected international traffics to Virgin Australia. Passengers of Qantas enjoy special connections to European cities via Dubai. Moreover, Qantas has established code - sharing with Emirates (Kuala Lumpur - Melbourne, Singapore - Melbourne, Bangkok - Sydney). on some ASEAN routes.

Virgin Australia current asian passenger traffic rely on its co-owners especially Singapore Airlines and Etihad Airways. Virgin Australia has formed code sharing with Singapore on some Asian destinations such as Bangkok, Kuala Lumpur and many more. Virgin Australia also has partnership with Virgin Atlantic and Etihad Airways on their Australia - Asian route. Virgin Australia placed its 'VA' on Etihad (Brisbane – Singapore) and Virgin Atlantic (Sydney – Hong Kong) operation.

In order for Virgin Australia to be present in Asia:
1.     Virgin Australia should look for a hub to focus new operation to Asia. Melbourne or Sydney will be a good option for connections/transit since most international airlines serve from these airports.
2.     Virgin Australia need to do research on routes that have high demands especially to, Singapore, Hong Kong, Tokyo – Narita, Shanghai – Pudong, Bangkok and Beijing.
3.     The airline need to buy new widebody jets which has capacity about 200 – 280 seats, capable to fly long distance and the most important – efficient low fuel consumption. Virgin Australia existing fleets - Airbus 330 – 200 are suitable aircrafts to be used for the new operation.

4.     Since the airline lacks presence in China, Virgin Australia may consider forming code – share with China Southern (the largest airlines in terms of fleet and its networks) or Shanghai – based, China Eastern Airlines.

map
Virgin Australia's current route networks


from smh.au


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