Changes to VA shorthaul Asian flying

As expected by a lot of people Virgin Australia has today announced it will withdraw from the Perth - Phuket route and hand its Perth/Melbourne/Adelaide - Bali routes to subsidiary Tigerair.

Tigerair will take over the Bali flights from March, with the Phuket route being dropped from February.

Regulatory approval is still begin sought for Tigerair to operate a fleet of 3 all economy Boeing 737-800s on the Bali flights.  Tigerair has until now been an all A320 operator.

Virgin will redirect its capacity from these routes to an increase on Sydney/Melbourne - Christchurch as well as seasonal capacity increases on flights to Fiji and the Solomon Islands.  Virgin reduced its capacity into Christchurch as a result of the effect on passenger numbers from the Christchurch earthquakes.

These changes come on the back of the annual profit announcement from Virgin which was a bottom line net loss of $94M AUD.  It is expected that these changes along with a $1b cost saving program will return the airline to profitability in the near future.

Read more about the changes to these services via the Brisbane Times HERE

Changes to Virgin Flights

With the reabsorption of Virgin Australia (NZ) into the Virgin Australia International arm there have been a number of schedule and flight number changes to the Virgin Australia International network, which came into effect this week, with the winter timetable.

Numerous Trans-Tasman, Pacific Island and Bali flights have seen either flight number or time changes or both, here are two changes of note.

Port Hedland - Denpasar Bali

This once weekly service used to operate PHE-DPS-PHE as VA2611/2613 utilising a Virgin Australia Regional Fokker F100, as of today Saturday 4-April-2015 it is now a DPS-PHE-DPS service using a Virgin Australia International B738 as VA74/73.

Sydney - Nadi Fiji

During Peak times Virgin Australia will up gauge their Saturday SYD-NAN-SYD service to an A330.  These peak times are mainly school holidays and selected dates over the Christmas/New Year holiday period.  The first up gauged service departed Sydney this morning Saturday 4-April-2015 operated by Airbus A330 VH-XFJ

VA Stat bite

Some readers may be interested in this Virgin Australia 'Stat bite' post looking at Virgin Australia International flights today.

Monday 30-March-2015

Total International Sectors Flown: 55
Trans Pacific Sectors: 4
Trans Tasman Sectors: 25
South East Asian Sectors: 13
South Pacific Sectors: 13

Aircraft Types Used: 2
Boeing 777-3ZG(ER)s Used: 4
Boeing 737-8FEs Used: 18
Boeing 737s with Boeing Sky Interior Used: 17

Excluding the PER-HKT-PER sectors today was the first day in a while that domestic or ex ZK aircraft haven't featured somewhere on the Bali/Trans Tasman/Pacific Island sectors.

Final ex VA(NZ) frame returns to service

The final first flight happened today with VH-VUQ ex ZK-PBL operating this morning,  Wednesday 18-March-2015, VA308 BNE-MEL.

This brings to the end the transition of the former VA(NZ) fleet back into VA International.

To date the following ex ZK aircraft have operated international routes
PBA VH-VOO
PBB VH-VOP
PBF VH-VOR
PBJ VH-VUB
All have seen domestic Australian service however just VH-VOR and VH-VUB have graced New Zealand/South Pacific skies again, with VH-VOO & VH-VOP operating only on international services to Bali.

Meanwhile as noted in THIS post - VH-YID now wearing full Virgin Samoa colours has hopped around the network operating Trans-Tasman, to Fiji, domestically in Australia, on FIFO flights in WA and to Denpasar from Perth.

VA(NZ) the (visible) end

The final New Zealand registered Virgin Australia aircraft ZK-PBL finished up last night Friday 13-March-2015 as VA161 AKL-BNE, bringing a visible end to VA(NZ).  

VA(NZ) will no doubt still have paperwork to complete and staff to transition across to VAI before it hands in its AOC but the visible face the 10 ZK registered aircraft have returned to Australia.

ZK-PBL will return to her previous Aussie registration VH-VUQ

VH-VUP ex ZK-PBK re-entered service today Saturday 14-March-2015 as VA607 BNE-MKY, while newly Virgin Samoa branded VH-YID operated this morning Saturday 14-March-2015 as VA152 BNE-AKL

Pacific Blue/Virgin Australia (NZ) commenced flying in 2004 between its home base of Christchurch and Brisbane a flight that continues daily to this date.  In 2007 it announced it would enter the New Zealand domestic market and indeed flew between Auckland, Wellington, Christchurch and Dunedin from November-2007 to October-2010.

With the withdrawal of ZK-PBL the New Zealand register connection ends after 11 years of aircraft on the New Zealand register. 23/01/04 - 14/03/15

And the winner is.......

And the winner is ZK-PBL the final VA(NZ) bird

Boeing 737-8FE ZK-PBK flew her final flights as VA171/170 BNE-VLI-BNE on Monday 09-March-2015 before entering the Virgin Australia hanger.  She was struck from the New Zealand register today Tuesday 10-March-2015 and will enter the Australian register as VH-VUP.

VH-VOR ex PBF at time of writing has not entered service but will no longer carry the Virgin Samoa titles.  ***UPDATE*** VH-VOR operated her first flight as VA1384 BNE-ADL today Tuesday 10-March-2015

VH-YID flew from Brisbane to Townsville on Tuesday 03-March-2015 as VA9939 where she entered the paint hanger and was given the Virgin Samoa titles and Tupu'itea name.  Unlike PBF she does not sport the tribal colour band on the engines.  She returned to Brisbane as VA9938 on Sunday 08-March-2015 and at time of writing has not flown since.

VH-VOR/ZK-PBF arriving at AKL in the old Polynesian Blue colour scheme ©nzompilot

Another first for Virgin Australia goes to VH-VUB ex ZK-PBJ which takes the honour of the first ex ZK bird to return to New Zealand.  VH-VUB operated VA160 BNE-AKL on Monday 09-March-2015

Then There Were two

Thursday 05-March-2015 saw Virgin Samoa branded Boeing 737-8FE ZK-PBF operate her final flight on the New Zealand register flying VA161 AKL-BNE.  Upon completion she was towed across the airport and entered the Virgin Australia hanger for business class upgrade and entry to the Australian register.  She will take up VH-VOR.

Meanwhile VH-VUH ex ZK-PBI re-entered Virgin Australia service on Tuesday 3-March-2015 as VA773 Brisbane to Cairns

VH-VUD ex ZK-PBG re-entered Virgin Australia service today Friday 06-March-2015 as VA304 Brisbane to Melbourne

Into The Final Countdown

VA(NZ) has entered the final countdown with just 3 frames remaining on the New Zealand register.

ZK-PBG operated its final service as VA161 AKL-BNE Sunday 01-March-2015 before entering the Brisbane hanger for her business class upgrade and entry to the Australian register as VH-VUD. She was struck from the New Zealand register today Monday 02-March-2015.

ZK-PBG arriving into a stormy AKL in 2007 ©nzompilot

At time of writing VH-VUH ex ZK-PBI had not yet re-entered Virgin Australia service.

Meanwhile despite having flown Business Class equipped aircraft on various Tasman routes for most of the past month, Virgin Australia officially launched Business Class across the Tasman with VA144 SYD-AKL on Saturday 28-February-2015.  From this date all SYD-AKL flights will offer business class.  The 3 remaining ZK registered aircraft will continue to operate but will not operate on SYD-AKL.  Currently PBL is operating out of BNE, PBF on AKL-MEL and AKL-PI services and PBK is on SYD-NAN and SYD-CHC routes.

Read more about the Business Class offering on Tasman services via
austbt.com.au HERE
Australian Aviation HERE

Then there were 4

The Virgin Australia(NZ) fleet has dwindled to just 4 frames with the latest entering the Brisbane hanger for reintroduction to the Australian register and business class upgrade.

ZK-PBI operated its final flights as VA120/121 BNE-DUD-BNE on Sunday 22-February-2015 with its scheduled flight on Monday 23-February-2015 VA171/170 BNE-VLI-BNE cancelled. It was removed from the New Zealand register today Tuesday 24-February-2015.

Meanwhile its predecessor in the hanger VH-VOY (ZK-PBD) made its first flight this morning Tuesday 24-February-2015 as VA1384 BNE-ADL.

The CASA register has been updated and shows that 4 of the 5 ex NZ aircraft (excluding PBI) have been registered to Virgin Australia International with just VH-VUO (PBM) being registered to Virgin Australia (Domestic)  This gives the opportunity for these frames to once again fly the Tasman and Pacific Island routes with the New Zealand based crews.

However to this point only VH-VOO (PBA) and VH-VUB (PBJ) have flown international and both have operated on the Denpasar Bali routes.  Besides the remaining VA(NZ) aircraft the Tasman/Pacific Island routes have all been flown by the newer VH-YI* series aircraft.

VA(NZ) halfway through reintegration into VAI

The Virgin Australia NZ fleet currently sits at half of what it was, with the 5th frame heading into the Brisbane hanger for return to the Australian register and to have its business class upgrade.

ZK-PBD operated its final flight as VOZ175/176 BNE-NAN-BNE on Wednesday 18-February-2015 and was struck from the New Zealand register on Thursday 19-February-2015.  She will re-enter the Australian register as VH-VOY.

VH-VUB ex ZK-PBJ entered service with Virgin Australia operating VOZ773 BNE-CNS on Thursday 19-February-2015.

VA(NZ) fleet update

The Virgin Australia team are pumping the ex VA(NZ) fleet through now with the next bird coming to the end of her time on the New Zealand register.

ZK-PBJ ended her VA(NZ) life on Friday 13-February-2013 operating VOZ176/175 BNE-NAN-BNE before she entered the Virgin Australia hanger to become VH-VUB and have the business class installation.

VH-VOP (ex ZK-PBB) left the hanger after her transformation and entered domestic service this morning Saturday 14-February-2015 as VOZ916 BNE-SYD

The withdrawal of ZK-PBJ leaves the remaining VA(NZ) fleet at 6.  As of today Saturday 14-February-2015 none of the former fleet have operated a Tasman/Pacific service, with the services being operated by other members of the VAI fleet in the VH-YI* range.

Virgin Australia International fleet update

Update of the reintegration of the former Virgin Australia New Zealand fleet into the main Virgin Australia International fleet.

ZK-PBA / VH-VOO - left the VA BNE hanger on Thursday 5-February-2015 and operated VOZ41 to Bali.  Since that date it has operated DPS flights to/from MEL/SYD/PER/ADL/BNE and is now on domestic duties.

ZK-PBM / VH-VUO - left the VA BNE hanger today Tuesday 10-February-2015 and operated its first service as VOZ334 to MEL.  VUO is registered to Virgin Australia Airlines not Virgin Australia International Airlines and is not expected to fly international routes.

ZK-PBB operated its final service on Monday 9-February-2015 as VOZ171/170 BNE-VLI-BNE.  It was struck from the New Zealand register today Tuesday 10-February-2015 and will enter the Australia register as VH-VOP

ex VA(NZ) aircraft update

An update to the previous POST - the Australian register has now been updated and confirms that as I suspected Virgin Australia Boeing 737-8FE ZK-PBA has indeed returned to her former Australian Registration of VH-VOO.  She was re-registered on Friday 30-January-2015.

VA(NZ) starts to disappear

As part of the ongoing cost cutting measures announced at the AGM in November, Virgin Australia New Zealand was set to be integrated back into Virgin Australia International.

This visible signs of this began today Friday 30-January-2015 with Boeing 737-8FE ZK-PBA being struck from the New Zealand register.

ZK-PBA operated her final flight under NZ rego as VA161 from Auckland to Brisbane last night Thursday 29-January-2015 before entering the Virgin Australia hangar to cross over to the Australian register.

ZK-PBA began life as VH-VOO and it is possible that she may return to that registration.

Reports suggest that the remaining 9 Virgin 738s will all cross to the Australian register by March ending almost 10 years of Pacific Blue/Virgin Australia aircraft on the New Zealand register.

ZK-PBA seen in CHC in 2008 when Pacific Blue operated NZ domestic services © nzompilot

Speculation mounts on future VA International routes

Virgin Australia CEO John Borghetti has started a speculation war announcing to a Travel & Tourism function that Virgin Australia will add two or possibly three new International routes int he next three years.

This appears to be on top of the recent announcement that now TigerAir Australia is 100% owned by Virgin Australia they will launch international services from Australia as well.

Speculation mounts as to where the routes will be and which aircraft will they use? B738? A330? B773? Asia? North America? Europe? Pacific?

Australian Aviation weighs in HERE and Australian Business Traveller HERE if you have a theory on routes or aircraft please add it in the comments

"First" Flights On Recently Changed Routes

As reported earlier on this blog and elsewhere there have been some changes to international schedules into and out of Australasia, and these schedules have now begun.

Virgin Australia ended its MEL-LAX flights on Sunday and up gauged its BNE-LAX services to daily.  
While the new service began on Sunday the first of the additional arrivals occurred this morning when Boeing 777-3ZGER VH-VPD arrived into Brisbane as VOZ8

With the new codesharing agreement between Singapore Airlines and Air New Zealand taking effect on the Singapore - Auckland route, today saw the first Airbus A380 flight on the SQ285/286 service, operated by A380-841 9V-SKB.  

Singapore will continue to operate its Boeing 777-200s on SQ282/281 evening service until January when this is replaced by an Air New Zealand Boeing 777-219 service, under the code NZ281/282.  

The A380 service will operate over the southern summer, and is expected to return to a Boeing 777-300 service at the end of March 2015.

Today also saw Untied's first International Boeing 787-9 route with the direct LAX-MEL UA98 route touching down on Australian soil.  Boeing 787-9 N38950 inaugurated the now direct service and is set to return direct to LAX as UA99 at time of writing.  This route previously operated with a Boeing 777-200 and a stop in SYD.

VA to take full control of TT for just $1

Media outlets report Virgin Australia CEO John Borghetti is set to take up the remaining 40% stake in low cost carrier TigerAir Australia for the princely sum of just $1.

Taking full ownership of TigerAir Australia has always been part of the Virgin Australia strategy as part of their 'Virgin Vision 2017' plan.

Borghetti is quoted as saying he intends to have the struggling carrier back in profitability ahead of schedule before the end of 2016, by leveraging the resources of the wider Virgin Australia group.

So what exactly does $1 get Virgin?  Obviously 40% of remaining shares, but also a fleet of 13 A320 aircraft, obvious current debt, the rights to operate the TigerAir Australia in Australia, but also the rights to operate the brand on a number of short haul international routes from Australia.

This international expansion would likely see TigerAir competing against Jetstar on routes to Bali and other south east Asian locations and may open up the opportunity for TigerAir to enter slim Trans Tasman routes, especially those that have previously been flown and dropped by the major carriers.

The transaction is expected to be completed by the end of the year pending permission from regulatory authorities and shareholders.

You can read more on the plan via Australian Business traveller or The Australian

The Rise And Fall Of Airlines Fighting For Regulated Routes In QLD

The Queensland Government has announced the winning tenders to operate the Government subsidised regulated regional routes.

Winners

The big winner in the announcement is Regional Express (Rex) who have picked up three routes to add to their existing two, taking them to five regional Queensland routes.

Rex maintained their existing routes;
Townsville - Winton - Longreach (Northern 1)
Townsville - Hughenden - Richmond - Julia Creek - Mt Isa (Northern 2)

they have also added the following three routes;
Brisbane - Toowoomba - St George - Cunnamulla - Thargomindah (Western 1)
Brisbane - Toowoomba - Charleville - Quilpie - Windorah - Birdsville - Bedourie - Bouila - Mt Isa (Western 2)
Cairns - Normanton - Mornington Island - Burketown - Doomadgee - Mt Isa (Gulf)

All five of the routes will be operated by the Rex fleet of Saab SF340B aircraft, with the two Western routes operating through the new Brisbane West- Wellcamp Airport at Toowoomba.

Rex picked up Northern 1 and 2 in 2011.  The addition of Western 1 & 2 sees Rex return to scheduled services at Brisbane after an absence, however they have still operated FIFO and Freight charters from Brisbane, so have maintained a presence.

Qantaslink hold onto their two regulated routes;
Brisbane - Roma - Charleville (Central 1)
Brisbane - Barcaldine/Blackall - Longreach (Central 2)

These routes will continue to be operated by Qantaslink's Dash 8Q aircraft however both routes will see an up gauge with Central 2 up gauging to Q400 and Central 1 to Q300.

Losers

The big loser from this announcement is Skytrans who have lost almost all their regulated routes (to Rex) this comes hot on the heels of their loss of their Toowoomba - Sydney service which is ceasing due to the introduction of the new Qantaslink Q400 Wellcamp - Sydney services.

Skytrans cling onto life with their own services around Cape York and on the Cairns - Mt Isa route as well as their FIFO charters.  The Cape York network is as follows;

The Lockhart River, Coen, Arurkun services which operates the following different patterns on different days
Cairns - Aurukun - Coen - Lockhart River - Cairns (M)
Cairns - Coen - Lockhart River - Aurukun - Cairns (W, F)
Cairns - Lockhart River - Aurukun - Cairns (Tu, Th)

Mt Isa services
Cairns - Mt Isa (M-Tu, Th-F)
Mt Isa - Cairns (M, W-F)

The Edward River (Pormpuraaw) and Kowanyama service
Cairns - Edward River - Kowanyama - Cairns (M, Th)
Cairns - Kowanyama - Edward River - Cairns (Tu, F)

The Cape route to Bamaga
Cairns - Bamaga - Cairns (M-F)

The loss of the Western 1 & 2 contracts will see the end of Skytrans operating scheduled services from Brisbane however they will continue to maintain a presence through FIFO contracts.

Another loser in all of this is Virgin Australia Regional Airlines (VARA) who have for quite sometime been trying to get access into the Queensland regional routes, and have often been thwarted by the regulated route structure.  VARA tendered but did not win any of the available routes.  There only options for possible extensions to regional Queensland flying comes from existing routes or the below deregulated routes.
Time will tell if previous threats made by Virgin CEO John Borghetti to the Queensland Government regarding implications of the lack of access to the Queensland regions come to pass.

Start & Deregulations

All existing contracts end on 31-December-2014 with new contracts beginning on 1-January-2015.  

At the same time the following regulated routes, currently operated by Qantaslink  will be deregulated and opened to competition;
Townsville - Cloncurry - Mt Isa
Cairns - Horn Island
Cairns - Weipa

Learn More

Brisbane West Wellcamp Airport have welcomed Rex via a post on their Facebook Page

There is an article on the announcement from Brisbane Times reporter Cameron Atfield HERE

VA joins in with red ink

Virgin Australia rounds out the Australasian Aviation finical reporting week with a statutory after tax loss of $355.6m ($AUD) however their underlying loss before tax was $211.7m ($AUD)

Virgin attributes this loss across the group as follows;
- Virgin Australia International (including VA NZ) loss of $66.8m
- Virgin Australia Domestic (including Skywest) loss of $59.2m
- Virgin Samoa (49% holding) loss of $2.6m 
- TigerAir (60% holding) loss of $46.1m
With restructuring and balance sheet costs, fuel, taxes etc also heavily contributing.

Virgin Australia has now completed its "Game Change Program Strategy" and has introduced Virgin Vision 2017 as its new focus.

Virgin Vision 2017
We can expect to see some change with this new vision which has wide scope throughout the entirety of the Virgin group.

The first change has seen Affinity Equity Partners buy a 35% stake in the Velocity Frequent Flyer program, giving the program an enterprise value of $960m ($AUD)  This will see the program remain under the control of Virgin Australia but with a separate board of directors.  Virgin Australia will maintain 65% voting rights and will appoint the chairman to the board. 

There will be some change in the fleet with the retirement of the two ex Emirates Airbus A330s an increased utilisation of the Boeing 737-800 fleet and the introduction of the new Boeing 737MAX fleet being brought forward from 2018 to 2017.

Virgin's charter operation, which have been built on the base afforded by the acquisition of Skywest has had a successful first year and Virgin are looking to grow it into a $200m ($AUD) operation by 2017.

Virgin will launch a new freight business in FY15 to leverage off their current RPT and Charter operations.

Virgin are looking to make $1b ($AUD) in cumulative productivity gains, this will be achieved through 3 steps;
1. Enhancing procurement
2. Improved productivity (including the above mentioned fleet changes and utilisation)
3. Streamlining of operations (see below)

As part of the streamlining of operations Virgin will reduce its long-haul international bases to two (SYD & BNE - with the already announced end of MEL-LAX flights)  it will  also  integrate Virgin Australia (NZ) operations back into its international division.

Virgin have announced they will also introduce business class onto all flights across the Tasman and to Fiji, which will be seen through the standardisation of the on board offering through the integration of VA(NZ) back into VA.  Currently VA(NZ) aircraft which operate on these routes do not have  business class seating.  

The biggest list of change/improvement is with the TigerAir LCC brand. 
1. Further improve customer satisfaction - something that has plagued TigerAir
2. Drive incremental revenue growth - through new revenue management and initiatives
3. Deliver cost synergies - via network, operational and finical synergies as well as a new Brisbane base and cooperation with VA on procurement of fuel
4. Development of an efficient operating platform and network footprint - new enhancements to drive operational efficiency including the new Brisbane base, new maintenance provider in BAE Systems and reaching agreement with Sydney Airport about infrastructure constraints at SYD

Read the full whack of documents supplied to the ASX including final report, press release, presentation and Velocity announcement HERE

VA Half Year result in the middle ground

After the highs of alliance partner Air New Zealand and the lows of opponent Qantas, Virgin Australia have today announced a "middle ground" position with their Half Year financial results.

While still announcing a statutory after tax loss of $83.7M AUD in comparison with Qantas, Virgin are in no way a loser with this result.

Virgin Australia has progressed with the integration of Skywest, continuing to align resources, systems and processes, and has worked closely with joint venture partner Tiger Airways Holdings Limited (Tigerair) to improve the performance of Tiger Airways Australia Pty Limited (Tigerair Australia). 

The integration of Skywest into the Virgin Australia Regional brand continues with this entity able to charter Virgin Australia jets to operate FIFO and other charter work especially in the WA mining areas.  VA Regional will also take delivery of at least 6 new ATR 72-600 aircraft by the end of the 2015 Calendar year. 

In the six months of the VA/TigerAir venture TigerAir has had an increase in passenger numbers of 3.5%, with a 4.5% increase in Load Factor and aircraft utilisation has increased by 12.7%

Read the Virgin Australia release to the ASX HERE