Moderators: richierich, ua900, PanAm_DC10, hOMSaR
chiraagnt wrote:While it’s been discussed on the Korean Air-Asians merger thread, I thought this news merited a separate thread.
Virgin Atlantic has confirmed that it will be launching LHR-ICN soon, as a remedy to the lack of competition on the LHR-ICN route. Further details to come.
Sources: https://www.headforpoints.com/2023/03/0 ... o-proceed/
KE will be facilitating the process, but I find it interesting that VS refuses to look at SIN. Yes, it is heavily contested with SQ, BA and QF but so was HKG and yet this was launched by VS. Any reason why they continue to refuse to serve SIN? Their codeshare with SQ may be a potential reason but they are doing the same with KE once they start LHR-ICN and this hasn’t stopped them from launching the route.
chiraagnt wrote:VS refuses to look at SIN. Yes, it is heavily contested with SQ, BA and QF but so was HKG and yet this was launched by VS.
smi0006 wrote:I am always surprised that VS doesn’t have a bigger foot print in Asia.
LAX772LR wrote:chiraagnt wrote:VS refuses to look at SIN. Yes, it is heavily contested with SQ, BA and QF but so was HKG and yet this was launched by VS.
Sure, but how's that route doing today.....?
Gonna need a more sound rationale than that.
FromCDGtoSYD wrote:The potential to retain the slots long term is a big plus, KE has every incentive to prop up VS to keep real competitors out.
Also there a huge strings attached to this:
https://www.flightglobal.com/airlines/r ... 80.article
With the current state of things, we probably won’t see VS at ICN anytime soon…
skipness1E wrote:"Real compettion" would be a non Skyteam member.
Seriously, the PR and Marketing drones really do think we zip up the back.
Interesting comparison with Big Airways who barely even leave the house without Auntie American holding their hand nowadays whereas Beardy Atlantic with a long haul fleet 1/3 the size of BA are trotting off to Korea without their Georgian significant other.
skipness1E wrote:"Real compettion" would be a non Skyteam member.
Seriously, the PR and Marketing drones really do think we zip up the back.
MIflyer12 wrote:skipness1E wrote:"Real compettion" would be a non Skyteam member.
Seriously, the PR and Marketing drones really do think we zip up the back.
If VS and KE can't coordinate capacity or pricing, it's competition, because it's seats in the market not controlled by KE. That's true whether or not VS eventually joins SkyTeam.
AllNippon767 wrote:MIflyer12 wrote:skipness1E wrote:"Real compettion" would be a non Skyteam member.
Seriously, the PR and Marketing drones really do think we zip up the back.
If VS and KE can't coordinate capacity or pricing, it's competition, because it's seats in the market not controlled by KE. That's true whether or not VS eventually joins SkyTeam.
Yeah well VS has officially joined SkyTeam today regardless. This is nothing but a plus for both carriers on this route. We don't know enough about how VS will operate ICN in coordination with KE so that "if" 'competition' is just pure speculation at this point.
cedarjet wrote:Singapore is 14h each way, and I bet Changi isn’t cheap, so arguably SIN has literally the highest operational cost of any destination from Heathrow.
MIflyer12 wrote:skipness1E wrote:"Real compettion" would be a non Skyteam member.
Seriously, the PR and Marketing drones really do think we zip up the back.
If VS and KE can't coordinate capacity or pricing, it's competition, because it's seats in the market not controlled by KE. That's true whether or not VS eventually joins SkyTeam.
airbazar wrote:MIflyer12 wrote:skipness1E wrote:"Real compettion" would be a non Skyteam member.
Seriously, the PR and Marketing drones really do think we zip up the back.
If VS and KE can't coordinate capacity or pricing, it's competition, because it's seats in the market not controlled by KE. That's true whether or not VS eventually joins SkyTeam.
That's being naive at best. VS is owned by DL and DL has a JV with KE. If you don't think they are "cooperating" in order to keep competition out of the route I have a bridge I'd like to sell you
Galwayman wrote:When SIA gave Virgin Atlantic away to Delta away there was probably some sort of uncodified agreement that VS would stay out of SIN, It's unlikely VS could compete effectively on the route up against SIA plus the ME3
jfk777 wrote:This route to Seoul could be the anchor for more Virgin in North Asia, but will it. It just gave up on Hong Kong, where they flew for 20 years. Tokyo would be great to see them fly again, maybe wishful thinking these days with Russian airspace closed. Virgin Atlantic needs a "Pacific" strategy, just flying to Seoul and Shanghai doesn't make a Pacific presence. With an airline with just about 30 long haul planes heavily committed to the USA does it really have the will and resources to fly all the way Korea and Japan ?
Westerwaelder wrote:[photoid][/photoid]jfk777 wrote:This route to Seoul could be the anchor for more Virgin in North Asia, but will it. It just gave up on Hong Kong, where they flew for 20 years. Tokyo would be great to see them fly again, maybe wishful thinking these days with Russian airspace closed. Virgin Atlantic needs a "Pacific" strategy, just flying to Seoul and Shanghai doesn't make a Pacific presence. With an airline with just about 30 long haul planes heavily committed to the USA does it really have the will and resources to fly all the way Korea and Japan ?
Virgin has a strong presence across the North Atlantic and is bulking up its holiday destination portfolio. Beyond that, it can pick off some routes that make sense commercially. I don't see a problem with only flying a small number of routes to Asia and compete in markets where it makes sense. Why do they "need a Pacific strategy"? I don't see a great number of underserved routes in the area from the UK. Sky Team membership might open up a few new opportunities that did not exist in that shape for a stand-alone carrier. They know what they are good at and are going for it.
jfk777 wrote:Westerwaelder wrote:[photoid][/photoid]jfk777 wrote:This route to Seoul could be the anchor for more Virgin in North Asia, but will it. It just gave up on Hong Kong, where they flew for 20 years. Tokyo would be great to see them fly again, maybe wishful thinking these days with Russian airspace closed. Virgin Atlantic needs a "Pacific" strategy, just flying to Seoul and Shanghai doesn't make a Pacific presence. With an airline with just about 30 long haul planes heavily committed to the USA does it really have the will and resources to fly all the way Korea and Japan ?
Virgin has a strong presence across the North Atlantic and is bulking up its holiday destination portfolio. Beyond that, it can pick off some routes that make sense commercially. I don't see a problem with only flying a small number of routes to Asia and compete in markets where it makes sense. Why do they "need a Pacific strategy"? I don't see a great number of underserved routes in the area from the UK. Sky Team membership might open up a few new opportunities that did not exist in that shape for a stand-alone carrier. They know what they are good at and are going for it.
IF Virgin is flying to Seoul why not fly to Taipei also since that is the home of Skyteam member China Airlines. I have never heard Virgin doing anything with China Eastern another Skyteam airline.
dstblj52 wrote:jfk777 wrote:Westerwaelder wrote:[photoid][/photoid]
Virgin has a strong presence across the North Atlantic and is bulking up its holiday destination portfolio. Beyond that, it can pick off some routes that make sense commercially. I don't see a problem with only flying a small number of routes to Asia and compete in markets where it makes sense. Why do they "need a Pacific strategy"? I don't see a great number of underserved routes in the area from the UK. Sky Team membership might open up a few new opportunities that did not exist in that shape for a stand-alone carrier. They know what they are good at and are going for it.
IF Virgin is flying to Seoul why not fly to Taipei also since that is the home of Skyteam member China Airlines. I have never heard Virgin doing anything with China Eastern another Skyteam airline.
This route is being given a slot from a competitor which means it merely has to pencil on the pnl any other route would have to be better then whatever it replaces out of Heathrow
Philippine333 wrote:If VS does launch ICN, then perhaps BA should return too for a third attempt to go head-to-head with VS after discontinuing it in 1998 and 2020, because it's pretty much the last major EU carrier not to fly into ICN, and I think that demand for a BA flight to ICN may hopefully then be on the horizon at some point in the foreseeable future since the competition might not be too bad as the 2012-2020 attempt if this route were ever to return. Because the OZ brand will probably be retired by then.
FromCDGtoSYD wrote:Philippine333 wrote:If VS does launch ICN, then perhaps BA should return too for a third attempt to go head-to-head with VS after discontinuing it in 1998 and 2020, because it's pretty much the last major EU carrier not to fly into ICN, and I think that demand for a BA flight to ICN may hopefully then be on the horizon at some point in the foreseeable future since the competition might not be too bad as the 2012-2020 attempt if this route were ever to return. Because the OZ brand will probably be retired by then.
I’m actually convinced BA only axed the route because they knew they could make more money elsewhere. It was a 787-8 mainstay so the smallest they had in the fleet, and they had a partnership with Korail for domestic rail feed (although that might have stopped when HSR service to ICN ended). But due to the limited number of 787-8 in their fleet if they could make more money flying elsewhere then it would make sense they would drop ICN which is a pretty marginal route for BA. They probably send the few remaining passengers via HKG, DOH, or HND.
3AWM wrote:I agree with Skipness1E in that I that there might be some sensitivities around competing with SQ.
I don't think LHR-ICN is a very good route for VS on it's own but think this route throws out some interesting opportunities.
I don't see any necessity to operate it directly as I think it could be operated with a stop through as country with a fairly liberal air services agreement. DXB is possible but I wouldn't want to compete with EK on that one. I see BKK as a good stop as the connections to the US are a bit weak but they could add some connections through the Delta arrangement on BKK / US flights. i think they could make money on that through the JV arrangement they have with Delta.
Given the time the frame would have to sit on the ground at ICN it seems there could be some additional utilisation with a tag. Another option is a triangular route with one stop on one of the legs in either direction but I couldn't say if this would be better from a commercial point of view.
Maybe post Brexit there could be more trade with South Korea which is a cultural superpower in Asia.
3AWM wrote:Nairobi might also work as BA is the only competition there. I think that is probably a good destination for one of the older frame they might otherwise have retired. There is an obvious incentive for Air Kenya to put their code on that one as they don't operate London flights themselves.
cityshuttle wrote:3AWM wrote:Nairobi might also work as BA is the only competition there. I think that is probably a good destination for one of the older frame they might otherwise have retired. There is an obvious incentive for Air Kenya to put their code on that one as they don't operate London flights themselves.
That’s wrong. Kenya Airways is operating daily KQ100/101 and several times a week KQ102/103 between NBO and LHR.
Might be an option that VS takes over one daily itself + KQ will reduce to one daily too … for double-daily Skyteam offer.
3AWM wrote:I think Hanoi is also a potentially interesting one as it is similar 1 competitor market to the one described at ICN, it also has plenty of South East Asia connections with Skyteam. Virgin as a brand with a big holiday and leisure market wing should be able to sell these destinations to Londoners all day long...
Not sure if the air services agreement allows for onward ticket sales to somewhere like HKG where Virgin will obviously still have customers I'm not sure. But air services agreements with the UK are up for re-negotiation right now following Brexit.
Philippine333 wrote:FromCDGtoSYD wrote:Philippine333 wrote:If VS does launch ICN, then perhaps BA should return too for a third attempt to go head-to-head with VS after discontinuing it in 1998 and 2020, because it's pretty much the last major EU carrier not to fly into ICN, and I think that demand for a BA flight to ICN may hopefully then be on the horizon at some point in the foreseeable future since the competition might not be too bad as the 2012-2020 attempt if this route were ever to return. Because the OZ brand will probably be retired by then.
I’m actually convinced BA only axed the route because they knew they could make more money elsewhere. It was a 787-8 mainstay so the smallest they had in the fleet, and they had a partnership with Korail for domestic rail feed (although that might have stopped when HSR service to ICN ended). But due to the limited number of 787-8 in their fleet if they could make more money flying elsewhere then it would make sense they would drop ICN which is a pretty marginal route for BA. They probably send the few remaining passengers via HKG, DOH, or HND.
But will BA revive ICN if at all, and what do you mean by ICN being marginal for BA? Also, do any of you have an idea how ICN fared for BA compared to KE and OZ services?
3AWM wrote:I think Hanoi is also a potentially interesting one as it is similar 1 competitor market to the one described at ICN, it also has plenty of South East Asia connections with Skyteam. Virgin as a brand with a big holiday and leisure market wing should be able to sell these destinations to Londoners all day long...
Not sure if the air services agreement allows for onward ticket sales to somewhere like HKG where Virgin will obviously still have customers I'm not sure. But air services agreements with the UK are up for re-negotiation right now following Brexit.
hoons90 wrote:Philippine333 wrote:FromCDGtoSYD wrote:
I’m actually convinced BA only axed the route because they knew they could make more money elsewhere. It was a 787-8 mainstay so the smallest they had in the fleet, and they had a partnership with Korail for domestic rail feed (although that might have stopped when HSR service to ICN ended). But due to the limited number of 787-8 in their fleet if they could make more money flying elsewhere then it would make sense they would drop ICN which is a pretty marginal route for BA. They probably send the few remaining passengers via HKG, DOH, or HND.
But will BA revive ICN if at all, and what do you mean by ICN being marginal for BA? Also, do any of you have an idea how ICN fared for BA compared to KE and OZ services?
There are a few factors that I surmise didn't contribute to the route's success:
- Lack of adequate feed at the ICN end, not only due to geography (ICN isn't that geographically advantageous for onward connections from Europe, unless if you're going to Japan), but also lack of alliance partners.
- ICN-LHR-Europe requires backtracking in many cases.
- Due to the factors above, O&D traffic plays a bigger role on the London-Seoul v.v. route.
- More South Koreans visit the UK (approx. 300k annually prior to the pandemic) vs. Britons visiting South Korea (approx. 140k annually prior to the pandemic), and the Korean carriers have the O&D advantage.
- Mass retirement of 747s due to COVID resulted in other aircraft types, such as 787s, backfilling routes that used to be operated by larger types.
- As the market started to recover post-COVID, Russian airspace became closed to British carriers, adding an extra 2-3 hours of flying time in each direction which would negatively affect the economics of flying to East Asia.
jfk777 wrote:Westerwaelder wrote:[photoid][/photoid]jfk777 wrote:This route to Seoul could be the anchor for more Virgin in North Asia, but will it. It just gave up on Hong Kong, where they flew for 20 years. Tokyo would be great to see them fly again, maybe wishful thinking these days with Russian airspace closed. Virgin Atlantic needs a "Pacific" strategy, just flying to Seoul and Shanghai doesn't make a Pacific presence. With an airline with just about 30 long haul planes heavily committed to the USA does it really have the will and resources to fly all the way Korea and Japan ?
Virgin has a strong presence across the North Atlantic and is bulking up its holiday destination portfolio. Beyond that, it can pick off some routes that make sense commercially. I don't see a problem with only flying a small number of routes to Asia and compete in markets where it makes sense. Why do they "need a Pacific strategy"? I don't see a great number of underserved routes in the area from the UK. Sky Team membership might open up a few new opportunities that did not exist in that shape for a stand-alone carrier. They know what they are good at and are going for it.
IF Virgin is flying to Seoul why not fly to Taipei also since that is the home of Skyteam member China Airlines. I have never heard Virgin doing anything with China Eastern another Skyteam airline.
YYZflyboy wrote:as well as with GA with their new LGW-CGK flight. UK residents can now fly the Kangaroo Route through VN/GA.
hoons90 wrote:Philippine333 wrote:FromCDGtoSYD wrote:
I’m actually convinced BA only axed the route because they knew they could make more money elsewhere. It was a 787-8 mainstay so the smallest they had in the fleet, and they had a partnership with Korail for domestic rail feed (although that might have stopped when HSR service to ICN ended). But due to the limited number of 787-8 in their fleet if they could make more money flying elsewhere then it would make sense they would drop ICN which is a pretty marginal route for BA. They probably send the few remaining passengers via HKG, DOH, or HND.
But will BA revive ICN if at all, and what do you mean by ICN being marginal for BA? Also, do any of you have an idea how ICN fared for BA compared to KE and OZ services?
There are a few factors that I surmise didn't contribute to the route's success:
- Lack of adequate feed at the ICN end, not only due to geography (ICN isn't that geographically advantageous for onward connections from Europe, unless if you're going to Japan), but also lack of alliance partners.
- ICN-LHR-Europe requires backtracking in many cases.
- Due to the factors above, O&D traffic plays a bigger role on the London-Seoul v.v. route.
- More South Koreans visit the UK (approx. 300k annually prior to the pandemic) vs. Britons visiting South Korea (approx. 140k annually prior to the pandemic), and the Korean carriers have the O&D advantage.
- Mass retirement of 747s due to COVID resulted in other aircraft types, such as 787s, backfilling routes that used to be operated by larger types.
- As the market started to recover post-COVID, Russian airspace became closed to British carriers, adding an extra 2-3 hours of flying time in each direction which would negatively affect the economics of flying to East Asia.