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VirginBlue... Who Will Win

Wed Feb 09, 2005 10:28 pm

Any ideas on who will win regarding the Patrick Corporation bid to take over DJ... Will Dicky Branson use his holding company Cricket SA, to force the share price up even more so Patrick is slowly squeezed out of a strong bidding position???
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RE: VirginBlue... Who Will Win

Wed Feb 09, 2005 10:58 pm

The problem is, Corrigan is a lot closer to the 50% mark needed to exert effective control than Branson is. Given what he has said recently in the media about wanting to get out of a price war, and given his preference for 'cosy duopolies' in the stevedoring and rail industries here, I think it would be quite a shame if Corrigan did manage to push over the 50% mark.

The key to Virgin's success has been how it has challenged the market norms, whereas Corrigan seems to talk about sitting comfortably in the market. The problem is, someone else will always have a go at challenging, and if Virgin Blue sit on their laurels (as I think Corrigan would like), then they will quickly find themselves in an equally concerning position as the price war - their market being eroded from both sides, and no real means of mounting a counter attack.

I hope he doesn't get past the 50% mark, or that if he does, I'm wrong. We don't need to go back to a cosy duopoly, or heaven forbid, a monopoly...

"So powerful is the light of unity that it can illuminate the whole earth." - Bahá'u'lláh
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RE: VirginBlue... Who Will Win

Wed Feb 09, 2005 11:59 pm

Hey... Thanks for you obviously educated opinion... I totally agree with your comments.. As you point out, we certainly do not need the old "monopoly" creeping back in... I do however think that Corrigan has some other plans for the airline if he gets it... You guys could find yourselves flying further a field in the not too distant future me thinks.... and no not Macau either!!! Watch this space mate....
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RE: VirginBlue... Who Will Win

Thu Feb 10, 2005 7:23 am

i think this Patrick pushing for 50% thing gives new momentum to ithe notion by Virgin Blue to go for long haul routes and regional aircraft... at least that's what an interview of Corrigan suggests. don't recall where i´ve read it, but he drops some hints about his vision for DJ, putting more emphasis on business travelers and corresponding perks.


If only pure sweetness was offered, why's this bitter taste left in my mouth.
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RE: VirginBlue... Who Will Win

Thu Feb 10, 2005 11:35 am

Branson: Prefers the low cost model, which was a very good thing when it was first established. Lower Airfares, using alternative teminals etc. Today Virgin Blue is struggling to compete against Jetstar.

Corrgian: Prefers a Fully serviced carrier. In other words Australia will have a trimmed and a better managed version of Ansett.

I guess we just have to see what is going to happen next.

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RE: VirginBlue... Who Will Win

Thu Feb 10, 2005 11:40 am

It would be interesting if Corrigan got his way. I understand they want to have Frequent Flyer points and take a bigger slice of the business sector (which Qantas virtually has to itself at the moment).

I say interesting, because they would presumably need to charge more as their costs would go up. This would leave Jetstar with the leisure market to itself.

Then again, they might just add a business class and make that full service and leave economy as no service. That might work, who knows...

I do quite enjoy a spot of flying - more so when it's not in Economy!

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