redroo wrote:The rumour going around PER and DRW is that Virgin are getting the Mint product for the 737s (aka the Thomson Vantage non XL product). Initially it will only be for a number of 737s for the east/west flights.
It wouldn't surprise me that Virgin roll this out to the rest of the fleet - "we're not making any money, and people are complaining about the old product, so we're going to roll it out across the fleet and get one up on QF".
Installing that product across the fleet? VA would be shooting themselves in the foot. Entirely inappropriate product for a SYD-MEL-BNE rotation which make up the bulk of their domestic flying. It may great for passengers but the economics wouldn't stack up. People aren't going to be paying the premium for this product on a 1-2 hr sector that VA need to make the capital outlay justifiable. They would also take a seat count hit by installing the new product.
Installing it on a dedicated PER-East Coast fleet is probably not ideal either, but VA have really pushed themselves into a corner when they introduced "The Business" on the A330 and set a precedent/standard. Going back to the existing 737 business class would alienate existing VA business customers and would be a hit to JB's ego who seems intent on having a superior product to QF at all costs. The challenge for VA as it was with the A330 business class, is getting the premium/yield to make the capital outlay worthwhile. With fewer business class seats on a 737, this will certainly help but the PER-East Coast market is no longer the pot of gold when the mining boom was in full swing.
At least VA have put the A330 business class product onto Intl routes now where in theory, there is a greater ability to extract an appropriate yield/premium on the product. The routes to HKG/China will really put VA's virtual global network and partners to the test. Coming up against the existing heavyweight incumbents in CX/QF/CZ/MU/CA is not going to be particularly easy.