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VirginFlyer
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Posts: 4123
Joined: Sun Sep 10, 2000 12:27 pm

Virgin Blue And Sydney Airport Resolve Dispute

Wed Nov 06, 2002 10:20 am

G'day all.

The dispute between Virgin Blue and Sydney Airport Corporation over use of T2 has been resolved! Sir Richard Branson made the announcement this morning in Sydney. Here is the official release from Virgin Blue:

http://www.virginblue.com.au/news/nov2002.html#061102

The key terms of the agreement include:

* A 17 year Anchor tenancy agreement to allow Virgin Blue to remain in a firm competitive position vs. Qantas
* Annual charges comparable to those negotiated in April by Virgin Blue, allowing the airline to maintain its commitment to affordable travel for all Australians.
* The low fare airline being allowed to use its own IT systems that is now the standard of the world?s leading low fare carriers.
* Virgin Blue will also continue using its own baggage systems that help to avoid the risk that bags might get lost in the global airline network.
* Virgin Blue has priority over the first 6 gates in Pier A and access to an additional 6 gates to facilitate the airline?s growth.
* Branding consistent to what has been negotiated at other major airports.
* No need for Virgin Blue Guests to board a bus to get to their aircraft.

It is good to see that this dispute appears to have been settled. The release also hints at Virgin's international expansion intentions - there was an article in today's AFR about the possibility of Virgin Atlantic running full service flights LHR-HKG-Australia (no mention of city). The article went on to say that Virgin Atlantic could cater for other international full service flights from Australia, with Virgin Blue taking the low cost end of the international market.

Hopefully this will mean that, before the end of the year, we will now hear of a fleet decision from Virgin Blue - they have been delaying any announcement until the Sydney dispute was resolved.

V/F
"So powerful is the light of unity that it can illuminate the whole earth." - Bahá'u'lláh
 
TonyBurr
Posts: 1060
Joined: Tue Mar 27, 2001 1:00 pm

RE: Virgin Blue And Sydney Airport Resolve Dispute

Wed Nov 06, 2002 10:25 am

Good news about the terminal settlement. The "trailers" at SYD for Virgin Blue were some thing else!

I am not sure what you meant about "Virgin Atlantic running fuller service flights LHR-HKK-Australia" Doesn't Virgin Atlantic ( not Blue) already do this? I thought for sure I have seen Virgin Atlantic in SYD?

Thanks for the info
 
Beno
Posts: 422
Joined: Wed Aug 28, 2002 6:52 pm

RE: Virgin Blue And Sydney Airport Resolve Dispute

Wed Nov 06, 2002 10:28 am

I think the chances of a third domestic airline are even slimmer than they where a 3 months ago. Virgin and Qantas now own the leases to terminals in every major Australian city making it almost impossible for a third domestic airline to start operations.
 
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VirginFlyer
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Posts: 4123
Joined: Sun Sep 10, 2000 12:27 pm

RE: Virgin Blue And Sydney Airport Resolve Dispute

Wed Nov 06, 2002 10:39 am

Tony - Virgin Atlantic code shares on Malaysian Airlines LHR-KUL-SYD. What was being suggested in AFR was Virgin Atlantic running flights LHR-HKG-SYD with their own metal.

V/F
"So powerful is the light of unity that it can illuminate the whole earth." - Bahá'u'lláh
 
TonyBurr
Posts: 1060
Joined: Tue Mar 27, 2001 1:00 pm

RE: Virgin Blue And Sydney Airport Resolve Dispute

Wed Nov 06, 2002 10:40 am

Thankf for the info on Virgin Atlantic. I don't know why I thought they had their own planes to SYD. Must have been another airport I was in.
 
QANTASpower
Posts: 515
Joined: Sat Aug 17, 2002 3:07 pm

RE: Virgin Blue And Sydney Airport Resolve Dispute

Wed Nov 06, 2002 11:12 am

I agree with Beno. The chances of a third airline with any substantial presence starting up are next to zero in the short term. All that is available is the leftover gates at MEL, SYD & Brisbane. Virgin will now be a much more serious competitor to QF and for that matter any new entrant.

Also expect to see QF close the deal to buy a 25% stake in ANZ within a few weeks. ANZ will soon after announce plans for a Hong Kong to London service which will then be viable with the feed it will get from QF's Hong Kong services.
 
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VirginFlyer
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RE: Virgin Blue And Sydney Airport Resolve Dispute

Wed Nov 06, 2002 11:13 am

Interesting to see that VirginBlue haven't let up on Macquarie Airports yet - the Stop the Macquarie Sydney Airport Rip Off banner is still on their website. I wonder how long it will last?

No news release from Sydney Airport on their website yet, but here are a couple of brief articles from SMH and ABC:

http://www.SMH.com.au/breaking/2002/11/06/FFX6FG8368D.html
http://abc.net.au/news/business/2002/11/item20021106114525_1.htm

V/F
"So powerful is the light of unity that it can illuminate the whole earth." - Bahá'u'lláh
 
zanadou
Posts: 334
Joined: Wed Nov 01, 2000 12:16 pm

RE: Virgin Blue And Sydney Airport Resolve Dispute

Wed Nov 06, 2002 11:40 am

Interesting to see that VirginBlue haven't let up on Macquarie Airports yet - the Stop the Macquarie Sydney Airport Rip Off banner is still on their website. I wonder how long it will last?

...not there now. Big grin

--->Zanadou!  Big thumbs up
 
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VirginFlyer
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Posts: 4123
Joined: Sun Sep 10, 2000 12:27 pm

RE: Virgin Blue And Sydney Airport Resolve Dispute

Wed Nov 06, 2002 1:16 pm

And here is Sydney Airport's word on the matter:

http://www.sydneyairportmedia.com/upload/FINALVB_T2_agrmt_rel051102.htm

I wonder what will become of the express terminal when Virgin moves out in early December?

V/F
"So powerful is the light of unity that it can illuminate the whole earth." - Bahá'u'lláh
 
thadocta
Posts: 389
Joined: Mon Aug 13, 2001 9:44 am

RE: Virgin Blue And Sydney Airport Resolve Dispute

Wed Nov 06, 2002 11:20 pm

VifginFlyer - it will probably be dismantled - it *is* a tin shed, after all.

Dave

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