I do wonder what is the future for HKG, if it wasn't for the recently approved VA/VS JV, the logical move would be for Scurrah/VA to initiate the moves to axe it.
I suspect the VS/VA JV for AU-LAX-LHR and AU-HKG-LHR is the last roll of the dice for VA in regards to HKG flights. Taking into consideration VA wasn't happy at HU/HX for the lackluster feed at HKG. Saying that, I can't see the VA/VS linkup lasting long in regards to HKG either unless if they are able to get better slots out of HKG going westbound (up to 6 hours connection time ex-SYD/MEL to HKG).
Axing HKG is a strategy suicide, because if you lose HKG, then where North Asian customers will go when they choose to fly domestically in Australia? Mostly and more likely Qantas.
Virgin is just fine with feeding its domestic traffic from SE Asia due to its partnership with SQ, but Qantas has lots more partners in North Asia and going via Singapore from North Asia to Australia is a very slow reroute. So if you axe HKG, more customers will then go to connecting domestic Qantas flights right?
HX and HU is not in a great financial position, which is a great con. Virgin will not be able to team up with Cathay Pacific neither.
What Virgin may need to do is to team up with other carriers at HKG for further feeds, such as BR and KE and NH, and move beyond the HNA group.
Second, Vistara is a great option for connection to a great continent in India.
Connecting at Europe is a problem with Virgin at HKG. Only VS is viable. Other carriers, BA and AY are OneWorld; AF and KL tied up with Qantas, LH, LX and OS already tied up with Cathay Pacific.
Yet I would say if they change to HND or NRT, as NH only has European flights during the morning, it will cause a headache to VA as well.
So I suppose keeping HKG is the most sensible option to prevent the worst happening. Also as HNA and Nanshan Group from China holding 40% of Virgin, I doubt if they would want Virgin to axe HKG for now.
I suppose a number of things Virgin can do right now:
1. Sell VARA to REX and enter into an alliance
2. Axe Tigerair Australia. Rebrand Economy X to full service and Economy to no-frills.
Last edited by CityRail
on Tue Aug 27, 2019 3:31 am, edited 1 time in total.