Concorde001
Topic Author
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A New Airline Alliance: Virgin Alliance?

Wed Mar 08, 2006 1:29 am

Reading the thread about Virgin Blue's (DJ) desire to operate SYD-LAX got me thinking about the possibilities of an airline alliance for all Virgin branded airlines.
With some leadership from VS, could an alliance like STAR or oneworld be formed with all Virgin branded airlines as members. It would give each airline alot of coverage and access to new markets. For example, some have mentioned on a.net that if DJ flew SYD-SFO, alot of connecting traffic could be produced for Virgin America who will use SFO as a hub. Similarly, if Virgin Nigeria is given the go ahead for US flights from LOS, Virgin America could again be used for US connections. If I'm not mistaken, VS are already finalising a codeshare/interline agreement with Virgin Blue to provide feed for each other on Australian domestic services and VS' SYD-HKG-LHR flights.

Virgin Alliance







But, considering that Virgin America, Virgin Blue and Pacific Blue are all LCCs, would such an alliance work? Could low cost and full service carriers work together successfully?
I would love to hear your views!
 
Avianca
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RE: A New Airline Alliance: Virgin Alliance?

Wed Mar 08, 2006 1:52 am

Quoting Concorde001 (Thread starter):
But, considering that Virgin America, Virgin Blue and Pacific Blue are all LCCs, would such an alliance work? Could low cost and full service carriers work together successfully?
I would love to hear your views!

it sounds very intresting, and I could imagine that this could be worked very very well, but only if they would introduce a strong europe network...

regards
Avianca
Colombia es el Mundo Y el Mundo es Colombia
 
timboflier215
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RE: A New Airline Alliance: Virgin Alliance?

Wed Mar 08, 2006 1:56 am

Quoting Avianca (Reply 1):
it sounds very intresting, and I could imagine that this could be worked very very well, but only if they would introduce a strong europe network...

indeed. i think virgin express would need to be strengthened in terms of destinations across europe. then such an alliance would have coverage in many profitable parts of the world, providing virgin america is a success of course...
 
Concorde001
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RE: A New Airline Alliance: Virgin Alliance?

Wed Mar 08, 2006 1:58 am

Quoting Avianca (Reply 1):
it sounds very intresting, and I could imagine that this could be worked very very well, but only if they would introduce a strong europe network...

Very good point. Though if VS merged with BD (BMI) that could be solved partially! Virgin Express is based in BRU, but rumours are going around that it may ditch the Virgin brand.
Sir Richard Branson is also looking at starting Virgin India. He has already lobbied the Indian government to change laws regarding foreign ownership of Indian carriers which currently stands at 0%. It will probably be quite a while till that happens, though when the barrier is removed I'm sure SRB will jump at the chance of creating an Indian carrier. That would really make a proposed 'Virgin Alliance' even more attractive.
 
B742
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RE: A New Airline Alliance: Virgin Alliance?

Wed Mar 08, 2006 1:59 am

You may have to add SN Brussels to that list, they are merging with Virgin Express!
http://news.bbc.co.uk/1/hi/business/3719326.stm

I would love to see a Virgin Alliance, I think it would be a great idea  Smile

Rob!  wave 
 
timboflier215
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RE: A New Airline Alliance: Virgin Alliance?

Wed Mar 08, 2006 2:01 am

Quoting Concorde001 (Reply 3):
Virgin Express is based in BRU, but rumours are going around that it may ditch the Virgin brand.

werent they taken over by sabena/SN brussels??? if so, it wouldnt be too much of a surprise of they did ditch the brand. be a shame tho. dont expect a BD tie-up to happen anytime soon. similarly, any change in the indian foregin ownership laws would take a loooooooong time; their government system is notoriously bureaucratic and slow moving, and id imagine even more so on issues of finance and red tape!
 
JoKeR
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RE: A New Airline Alliance: Virgin Alliance?

Wed Mar 08, 2006 2:01 am

So many Virgin's in one place? Slut! Big grin

Interesting point, agree on the European Network necessity. Perhaps buying an exitsing Eruopean airline could do the trick?
Kafa, čaj, šraf?
 
timboflier215
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RE: A New Airline Alliance: Virgin Alliance?

Wed Mar 08, 2006 2:06 am

Quoting JoKeR (Reply 6):
Perhaps buying an exitsing Eruopean airline could do the trick?

SRB seems to be happier starting afresh than buying up other peoples business. apart from BD, which sir michael bishop will NOT sell to SRB, which other european airlines would be a) affordable and b) give the virgin group the european coverage they need? i know VS used to fly to greece with an A321. maybe they could try to expand into europe? or would this be doomed to failure with such stiff and well-entrenched comptetion? oohh, the possibilities!!
 
Concorde001
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RE: A New Airline Alliance: Virgin Alliance?

Wed Mar 08, 2006 3:35 am

Quoting Timboflier215 (Reply 7):
which other european airlines would be a) affordable and b) give the virgin group the european coverage they need?

Well if AZ gets into deeper trouble, SRB may like to pick up the pieces.

Quoting Timboflier215 (Reply 7):
i know VS used to fly to greece with an A321. maybe they could try to expand into europe? or would this be doomed to failure with such stiff and well-entrenched comptetion?

The problem is LHR and slots! If VS had the slots at LHR (and I mean alot of slots) only after strengthening the international network would they consider European expansion.

Back to the issue of the alliance, could it also help reduce costs? I was thinking frequent flyer programmes and ground handling costs. For example Virgin America could provide ground handling for VS in the US, VK in LOS and DJ in Australia. Similarly, instead of running different frequent flyer programmes (VS' Flying Club and DJ's Velocity) and the costs of doing so, could significant money be saved by having one programme for alliance members?