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Posts Tagged ‘Virgin Blue’

V Australia, Virgin Blue’s long-haul offshoot, was supposed to launch its service from Sydney to Los Angeles on December 15th, but due to the strike at Boeing headquarters has forced the launch until February of next year!

The airline has suspended advanced sale of tickets for travel December 15 2008 to February 28th 2009.

The strike is very unfortunate! The way the airlines work is that they use the delivery date for new airplanes to add new flights and sell tickets in advance. Any delay in delivery date means loss of revenue for the airlines. The aircraft manufacturer might have to pay delay costs to the airlines (depends on the contract). This seems to be a big opportunity for Airbus (Airbus had problems with A380 and A350 deliveries which now seem to be on track).  

From Herald Sun –

Virgin Blue
said Boeing had advised it of the delay and said it cannot predict the
duration of the dispute at its Seattle plant and therefore could not
guarantee the delivery date of V Australia’s launch aircraft.
V Australia has three Boeing 777-300ER aircraft in the advanced stage production at the plant.
Virgin
Blue said it had a revised the V Australia launch date and expects its
offshoot to commence services on February 28, 2009.

V Australia’s Executive GM Scott Swift said – (from here)

In a letter to passengers with tickets booked, V Australia executive GM Scott Swift said the carrier was “very sorry to have to tell you” of the deferred launch.

“Boeing has advised us that it cannot predict the duration of the strike. It is in these circumstances that we feel we have no choice but to delay our V Australia launch and have nominated a revised V Australia launch date of 28 February 2009 to protect the interests of our Guests,” said Swift.

“We are one of a number of airlines impacted by the strike. V Australia has three Boeing 777-300ER aircraft in advanced production at the factory. The strike has no bearing on services operated by Virgin Blue, Pacific Blue or Polynesian Blue,” he said.

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Rising gas prices have lead airlines around the world to try every kind of cost cutting measures like capacity reductions and new travel fees. Virgin Blue, Australian low cost airlines and Australia’s second biggest airline, announced today some new cost cutting measures –

  • Capacity reduction – Removing 2 Boeing 737 from service by October 2008. Also move of 4 aircrafts used for domestic routes to international routes.
  • New Baggage fees – New “pay for weight” policy depending on the weight of the bag
  • Talks with Embraer to defer aircraft deliveries
  • Increasing Flexible Fares by 5%

From The Australian

VIRGIN Blue boss Brett Godfrey says – “While Virgin was due to announce another round of restructuring today, Mr Godfrey said there were no plans for staff cuts unless jet fuel, currently at $US171 a barrel, rose to $US185 to $US200 a barrel and stayed there.”

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(I know this is not the way to fuel an airplane 🙂 )

Rising cost of jet fuel is causing airlines all over the world to increase airfare. Australian airlines Virgin Blue and Qantas are looking into increase fuel surcharges. Starting next month (May 2008), Virgin Blue is going to increase fuel surcharges by up to $12 (Australian $) and Qantas is considering a similar move.

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Virgin Blue, Australia’s Brisbane-based second biggest airline (largest by fleet size), and Vietnam Airlines, the national flag carrier of Vietnam, have announced a code-share and comprehensive interline agreement.

Features about the Agreement –

  • It will provide “seamless” connections via Sydney and Melbourne to Vietnam and beyond as well as to 22
    Australian cities (cities in the Virgin Blue’s domestic network).
  • It will allow passengers to check-in bags from origin to destination without any fees or need for re-checking.
  • Currently Vietnam Airlines offers one daily service (on Boeing 777) from Australia to Vietnam (3 from Melbourne and 4 from Sydney)

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