chris7217
Crew
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Posts: 137
Joined: Wed Nov 20, 2002 7:51 pm

Is It Likely To See Virgin Asia?

Fri Sep 28, 2012 2:22 pm

Hi everyone,

Since Virgin America has been started years ago in the US (no matter the airline's present situation) I wonder if it may be likely to see Virgin Asia any time in the future.

As there are so many LCC in Asia now and yet another one coming in 2013 with Jetstar Hong Kong the huge growth prospects predicted for Asia could still offer room for Virgin Asia.

Opinions and comments are much appreciated!
 
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IrishAyes
Posts: 2230
Joined: Sat Jan 26, 2008 6:04 pm

Is It Likely To See Virgin Asia?

Fri Sep 28, 2012 3:49 pm

I think you just answered your own question.

Essentially, the Virgin brand is, at lowest common denominator, a hybrid model (VX being the best example). In Asia, the LCC growth has been very successful at capturing the emerging middle class. As a new entrant, a Virgin-branded carrier would most likely have to follow a similar model in order to capture upon that growth rate.

Otherwise, there really isn't much value proposition for Virgin. The premium network airlines (KE, SQ, CX, JL, etc) are already well-established, and to a lesser degree, you have the likes of EK, QR, EY etc filling the other gaps.

Of course, Virgin has experimented with the low-cost, no-frills model before (with DJ) but that has changed over the years, clearly.
confidence is silent. insecurities are loud.
 
srbmod
Posts: 15446
Joined: Tue Mar 20, 2001 1:32 pm

RE: Is It Likely To See Virgin Asia?

Fri Sep 28, 2012 5:39 pm

There already is, it's called AirAsia X. The Virgin Group has a 16% stake in the airline.
 
anstar
Posts: 2892
Joined: Sun Nov 23, 2003 3:49 am

RE: Is It Likely To See Virgin Asia?

Fri Sep 28, 2012 5:45 pm

Quoting srbmod (Reply 2):
here already is, it's called AirAsia X. The Virgin Group has a 16% stake in the airline.

I thought they had sold their shareholding?
 
Viscount724
Posts: 19304
Joined: Thu Oct 12, 2006 7:32 pm

RE: Is It Likely To See Virgin Asia?

Fri Sep 28, 2012 10:28 pm

Quoting anstar (Reply 3):
Quoting srbmod (Reply 2):
here already is, it's called AirAsia X. The Virgin Group has a 16% stake in the airline.

I thought they had sold their shareholding?

It was 10% and has been sold according to the following Air Transport World report dated June 29, 2012. The Virgin stake was originally 20% in 2007.
http://atwonline.com/airline-finance...rgin-sells-10-stake-airasia-x-0629
 
infinit
Posts: 957
Joined: Thu Jul 31, 2008 1:12 am

RE: Is It Likely To See Virgin Asia?

Sat Sep 29, 2012 6:11 am

Quoting IrishAyes (Reply 1):
I think you just answered your own question.

Essentially, the Virgin brand is, at lowest common denominator, a hybrid model (VX being the best example). In Asia, the LCC growth has been very successful at capturing the emerging middle class. As a new entrant, a Virgin-branded carrier would most likely have to follow a similar model in order to capture upon that growth rate.

Otherwise, there really isn't much value proposition for Virgin. The premium network airlines (KE, SQ, CX, JL, etc) are already well-established, and to a lesser degree, you have the likes of EK, QR, EY etc filling the other gaps.

Of course, Virgin has experimented with the low-cost, no-frills model before (with DJ) but that has changed over the years, clearly.

True but I can imagine Virgin being able to position itself somewhere in between. And SQ owns 49% of Virgin so perhaps they could use Virgin to make up for the aircraft shortage SQ has now?
 
ZKOJH
Posts: 1466
Joined: Mon Sep 13, 2004 9:51 am

RE: Is It Likely To See Virgin Asia?

Sat Sep 29, 2012 10:58 am

A few years ago there was talk of Virgin coming into Asia but all went still, also there was a rumor he wanted to attack the Russian airspace too, they seem to have lots of dreams but really Virgin Australia is the only one that as worked,

as said above the next big one will be Jetstar Hong Kong once all the I's and T's have been dotted and signed. in China you don't have many LCC's yet, there's the likes of Spring airlines, and Air Asia are starting to expand also, so I doubt there will be much room to play with!
Vietnam time..

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