What might happen to Virgin Australia if Singapore Airlines buys a controlling stake?
9 replies
Hi Guest, join in the discussion on What might happen to Virgin Australia if Singapore Airlines buys a controlling stake?
Hi Guest, join in the discussion on What might happen to Virgin Australia if Singapore Airlines buys a controlling stake?
bmc
bmc
Virgin Australia - Velocity Rewards
Member since 22 Aug 2013
Total posts 121
Big if but what might happen to VA if SQ buy a controlling stake? Assuming SQ want to and fight off other offers and get appropriate government approvals etc etc
deanr
deanr
Member since 04 May 2015
Total posts 58
Its name will change to Virgin Singapore, its airline code to VS and then Virgin Atlantic will rejoice because it can finally become 'VA'.
That's what this is all about, right? ;p
bmc
bmc
Virgin Australia - Velocity Rewards
Member since 22 Aug 2013
Total posts 121
lol
Mal
Mal
Member since 14 Jun 2013
Total posts 109
Nobody has any real idea of what would happen, not even VA or SQ themselves, but here's what I would like to happen.
1. SQ takes majority stake in VA, including buying out Etihad's stake. VA keeps Etihad 'partnership' just like it has Air New Zealand and Delta partnership but SQ in the driver's seat.
2. VA drops its SYD-LAX and BNE-LAX flights and SQ gets 'fifth freedom' rights to fly from Australia to the USA, something it has wanted for years but has always been denied thanks to QF machinations.
3. VA also axes its silly Sydney-Abu Dhabi flight and with the exception of Trans-Tasman services becomes a domestic-only carrier so it can focus all its energies on competing against Qantas in the Australian and AU-NZ market.
4. SQ sponsors VA to become a member of Star Alliance, giving Star a local partner airline, that alone would boost VA patronage among many business travellers.
hutch
hutch
Member since 07 Oct 2012
Total posts 772
Whilst you may like it to happen, it is not really likely:
1. Problem with that is that if SQ gains the controlling stake there is really no incentive for them to keep Ethiad partnership - they would want to feed SQ services. Additionally, if Virgin is not flying into the USA, it is very unlikely for that SQ is going to provide feed for Delta flights in the USA and nor is Delta going to put passengers onto SQ flights instead of their own.
2. Something it has wanted, but with QF not using SIN as a hub anymore, Singapore doesn't really have many bargaining chips to make this happen (let's face it, it is very unlikely to occur anytime... not impossible, but unlikely). United/Air NZ wouldn't exactly be pleased and the issues with feed at the USA remain (Delta/United unlikely to feed SQ over their own services). Worth noting that when SQ wanted to fly the pacific, it was a duopoly between United/Qantas.... different picture today with different yield.
3. What more can VA do to compete with Qantas? Part of the disadvantage for VA against QF is is their lack international routes... going backwards may not help them, particulary if the VA/DL partnership is making money.
4. I can agree with you on this front...entering Star would likely be a good thing for Virgin both in feed and also improving the Velocity program.
JackB
JackB
Member since 18 Apr 2016
Total posts 2
mal,
Why would they get rid of the 777 adn the routes they fly, if its making them money. I know for a fact that its a profitable route. I have never known for an airline to pull flights that make them money?
aviation
aviation
Member since 18 Mar 2014
Total posts 39
Isn't it pretty well publicised that the VA international services are actually losing them a heap of money???
JackB
JackB
Member since 18 Apr 2016
Total posts 2
not on the long haul routes.
DPS and HKT, hence why the pulled them.
They were losing so much money from the two routes.
ads086
ads086
Qantas - Qantas Frequent Flyer
Member since 14 Apr 2014
Total posts 46
I'd leave the 777's on the LAX routes, but I'd drop the Abu Dhabi and pick up a SYD-SIN with it. This would let Singapore redeploy one of theirs onto a new route or increase capacity where its needed.
If they're quick they'd be able to get more 777s at good rates given Boeing are looking for work to carry this program over until 777X kicks off, and launch Hong Kong flights (assuming slots could be arranged) which connect to VS - then VA can fly you to London via 3 different stops.
DanV
DanV
Qantas - Qantas Frequent Flyer
Member since 04 Nov 2017
Total posts 100
Nobody has any real idea of what would happen, not even VA or SQ themselves, but here's what I would like to happen.
1. SQ takes majority stake in VA, including buying out Etihad's stake. VA keeps Etihad 'partnership' just like it has Air New Zealand and Delta partnership but SQ in the driver's seat.
2. VA drops its SYD-LAX and BNE-LAX flights and SQ gets 'fifth freedom' rights to fly from Australia to the USA, something it has wanted for years but has always been denied thanks to QF machinations.
3. VA also axes its silly Sydney-Abu Dhabi flight and with the exception of Trans-Tasman services becomes a domestic-only carrier so it can focus all its energies on competing against Qantas in the Australian and AU-NZ market.
4. SQ sponsors VA to become a member of Star Alliance, giving Star a local partner airline, that alone would boost VA patronage among many business travellers.
Although this is 3 years late, I'll reply anyway.