PerthGloryFan
Topic Author
Posts: 725
Joined: Fri Oct 27, 2000 9:48 pm

ValueAir To Expand Oz Operations

Tue Mar 01, 2005 7:42 pm

More competition for Dixon to whine about.

http://www.forbes.com/home/feeds/ap/2005/03/01/ap1854652.html

Clearly, as the article says they need to invest in a couple of A330s if they are looking at SYD, MEL & BNE.

"Australia has been good for us from our Perth experience," the newspaper quoted Sim as saying. "It's a route with good loads and good yields."

Of course he doesn't define "good loads" and "good yields".

I don't of anyone who has flown PER-SIN with them - any reports from anyone?

Interesting how PER has been the Australian test market for both VF & Air Paradise International.

PGF
 
HB-IWC
Posts: 4033
Joined: Fri Sep 22, 2000 1:09 am

RE: ValueAir To Expand Oz Operations

Tue Mar 01, 2005 8:04 pm

Whilst Perth may have been good on ValuAir, Jakarta has most certainly been not so bright. Fares have been under considerable pressure, and ValuAir's current fares on the Jakarta-Singapore route are lower as their introductory fares of last year. The airline has reduced frequency back to where it was at 1 flight a day, and the skies are all but clearing up with AWAIR and Jetstar Asia lining up for Jakarta service as well.
 
docpepz
Posts: 1706
Joined: Thu May 24, 2001 8:20 pm

RE: ValueAir To Expand Oz Operations

Tue Mar 01, 2005 10:27 pm

Valuair flies to HKG, CGK, BKK and PER. Now they wanna go to Sydney with widebody 767/777s. One class. Hardly any frills. (Their inflight meal is a joke if you ask me. And you have to pay for drinks! No IFE.) So that's nearly 400 seats on a one class operation to Sydney.

Where is Valuair going to get the feed from? a couple of A320s from BKK and HKG? QF has 24 744s from Europe to feed into their Australian routes from SIN. SQ has a network of 59 destinations to feed into SIN, for pax to connect to Australia. VF will fill 400 seats to Sydney with a handful of A320 flights from HKG, BKK and CGK?

Their flexible fares to PER are $620 sing dollars. SQ's flexible fare to Perth has always been $650 sing. Valuair's cheapest fare is $320. SQ's is $288 and QF's is $328 to $348.

The Singapore market is tiny. SQ and QF feed their Australian operations from Long Haul Europe flights. On my latest flight SQ222 from SYD to SIN, only less than 30 pax got off at SIN. Everyone else was going to LHR, Europe and other points in Asia.

Valuair is not going to be able to operate much cheaper to Australia than SQ and QF, especially the east cost since flights are between 7 to 8 hours. All the costs associated with quick turnaround times and so on, for a supposed LCC, will evaporate.

I'd say good luck to Valuair. They're up against the most profitable, efficient and well regarded carriers in the world (QF and SQ).
 
6thfreedom
Posts: 2615
Joined: Thu Sep 30, 2004 11:09 am

RE: ValueAir To Expand Oz Operations

Tue Mar 01, 2005 10:46 pm

PGF...
Valuair was practically the only OZ market valuair could operate to with its A320.
with respect to Air Paradise, again, a short haul operation was the lowest risk.
since starting or going up to daily, API has scaled back to 4-5 pw.
on the other hand mel and sydney has increased from2-3 pw to 5pw.
air paradise has stated that the mel op provides the highest pax and highest profits as far as OZ ops go. API is now the largest carrier between MEL and indonesia....
 
HB-IWC
Posts: 4033
Joined: Fri Sep 22, 2000 1:09 am

RE: ValueAir To Expand Oz Operations

Tue Mar 01, 2005 10:57 pm

Things at Air Paradise International are, however, not good either. The airline is rumoured to be seriously cash strapped, and all of the markets they serve are distinctly low yield.

As for ValuAir, I find it doubtful that they will be able to survive. Singapore Airlines and others have lowered their fares to outperform VF's in all of its markets. The Bangkok market is nothing short of a blood bath, the HKG-route is now also served by Jetstar, and SQ's and QF's fares to Perth are often better than VF's.