aerokiwi wrote:LTEN11 wrote:aerokiwi wrote:
Err they have kept it simple - they've farmed out the ops and the risk to another airline. Love to see the Saab in Virgin colours but I doubt we'll get that.
Frankly, the Saabs vs the Dashes is much of a muchness and I actually prefer the option of a single seat row in the Saab. Qantas' service vs REX doesn't warrant the price premium and I've been pleasantly surprised by the REX in-flight offering. The bus from the terminal is a pain, mind you.
My workplace has noted the premium QF has been charging on the route and we've been nudged to look at cheaper options. I even gave the train a go last year - hard pass on that one. So VA returning is a welcome move, moreso given the lounge infrastructure they have there that I couldn't access because of their absence on the route.
So they can count on at least one customer, once or twice a month return.
How have they farmed out the risk ? Link would most likely be getting a set fee per flight, whether there is 1 or 36 people on the flight, there's next to no risk for them as long as they operate when required, except maybe VA not paying them. VA on the other hand will have a break even figure, it might be 5, 10 or 30 passengers, they'll know what it will be, so they must be reasonably comfortable they will at least breakeven over the course of the contract. But the risk will be with VA to reach that breakeven figure, not Link.
VA aren't adopting a new fleet type or shoehorning in an existing one. Crewing will all be on Link. And maintenance will be Link. You know, the really substantial cost components.
So yeah, farmed out the riskiest elements, if you will. Sure there will be a contracted arrangement whereby VA has the burden of covering the opex and generating the revenue, but it's a much-scaled down approach than adopting, say, the ATRs all over again. It's a comparatively small move in the scheme of things as well but an important one in a high-value segment of the market. So the hyperventilating over it as unnecessary and "splashing out" is really hyperbole.
Not quite sure how Link will cover these flights without either culling some current routes or finding new SAABs