Virgin Australia aims for second Asian route by end of 2018
By David Flynn, November 9 2017
Virgin Australia hopes to begin Airbus A330 flights on its second Asian route – most likely Hong Kong or on the Chinese mainland – by this time next year.
"We've got the aircraft, we're just missing the (airport) slots and we're working on that," Virgin Australia CEO John Borghetti said following the airline's annual general meeting held in Brisbane this week.
"We're working hard on getting additional slots in a couple of cities (which) could be Hong Kong or in China or anywhere else (in Asia)."
"I'd like to think by this time next year we will have those slots, but it's a process," Borghetti expanded.
"People said 12 months ago 'You’ll never get slots in Hong Kong, but we now have seven', so by this time next year I’m hopeful we will be flying" into a new Asian city.
Virgin opened its Melbourne-Hong Kong route in July 2017, with flights now running daily, and has its eye on both the Sydney-Hong Kong and Brisbane-Hong Kong corridors as well as the Chinese mainland – which are expected to be hubs used by airlines owned by or affiliated to Virgin Australia stakeholder HNA.
"By the end of 2018 we will be in mainland China," Borghetti assured Australian Business Traveller on the sidelines of the Melbourne-Hong Kong launch in July 2017.
But he stressed the Chinese capital wasn't on that list. "I have no intention of going to Beijing."
"We're leaving a lot of options open because it depends on slots, but i don't see a situation where in three years we are not operating to two places in China, and Hong Kong, and another place in Asia... I just can't see that not happening."
While this sounds like a stretch for Virgin's international fleet – which has all five Boeing 777s committed to Los Angeles and just six Airbus A330s – "you can always get aircraft", Borghetti said.
"It's actually not that hard... if we want an aircraft we can get one next month, because there are leasing companies that have got spots."
It's perhaps fortuitous that HNA also operates the world’s third-largest rental fleet, with over 900 jets valued at over US$43 billion.
"So I’m not really worried about getting aircraft, it's more about making sure your destinations work," Borghetti affirmed.
David Flynn is the Editor-in-Chief of Executive Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.
16 Feb 2017
Total posts 3
25 Sep 2013
Total posts 1242
Yes I was confused by the wording.
24 Aug 2011
Total posts 1207
As well as HNA's fleet, VA's other shareholders SQ and EY may also be able to supply RR powered A330s if needed. EY are currently reducing their A332 fleet whilst SQ are beginning to retire their A333s. Whilst the A333 is not the same as VA;s existing A332s, it would enable VA to consider adding a W class to their A330s if they believe their is sufficient demand.
07 Nov 2017
Total posts 28
David, just a question on your quote "By the end of 2018 we will be in mainland China,".
31 Mar 2016
Total posts 619
@JPeuty:
Qantas - Qantas Frequent Flyer Platinum
07 Feb 2013
Total posts 548
So because they are 'studying' they aren't bound by the obligations any more? You need to do some reading.
31 Mar 2016
Total posts 619
@Doubleplatinum:
Qantas - Qantas Frequent Flyer
20 Jan 2016
Total posts 3
If we take the big 4 Chinese cities (excluding HK) into consideration and not anything else, then Guangzhou will be my first in the priority list given the sole competitor is only Southern China.
31 Mar 2016
Total posts 619
@CloudsAbove:
QF
11 Jul 2014
Total posts 1010
I don't think he will be chasing any cheap cheap A380 if they need to lease new planes I think he is an A350 or maybe a second choice of 787 man
31 Mar 2016
Total posts 619
@UpUpAndAway:
QF
11 Jul 2014
Total posts 1010
Makes sense what you are saying, but Borghetti likes being a trail blazer he isn't a follower and getting old planes doesn't suit that type of person.
31 Mar 2016
Total posts 619
@UpUpAndAway:
23 May 2012
Total posts 35
They badly need one more 777 to smooth out the LAX schedule and get consistent timings on the Brisbane flights.
Thai Airways International - Royal Orchid Plus
16 May 2011
Total posts 111
My money is on MEL-PVG, prime route for an Australian carrier to fly, SYD currently has three airlines with QF on that route, so it makes sense for VA to do it from MEL, and possibly build its Asian presence there. With HKG flights already, MEL already has a foot in the door, it would make sense for VA to expand into Australia's second largest aviation market instead of competing head on with QF at SYD. No doubt, Chinese numbers from MEL is just as compeling as SYD.
31 Mar 2016
Total posts 619
@Andy H:
30 Aug 2013
Total posts 437
End of 2018?! Don't want to rush into these things lol.
31 Mar 2016
Total posts 619
@smit0847:
Virgin Australia - Velocity Rewards
09 Jun 2014
Total posts 10
Is leasing more 330s really that easy for VA?? They need to be fitted, painted, crewed, etc. This is a huge expense that VA can't seem to afford. I get that securing slots at certain airports is hard but surely adding numbers to the fleet is equally as hard??
QF
03 Jul 2015
Total posts 23
Love the "anywhere in Asia" quote.
22 Sep 2017
Total posts 94
He needs to learn that "Hong Kong is part of China". Keep on referring to them as two separate countries and it will be "no slots for you".
10 Nov 2017
Total posts 2
Hong Kong is a separate jurisdiction for aviation and other purposes. It enters its own international treaties for economic matters, for example. Conflating Hong Kong with China is simplistic and offensive to the local population - just ask them.
31 Mar 2016
Total posts 619
@russh7:
Thai Airways International - Royal Orchid Plus
13 Jan 2017
Total posts 31
Disagree with this - Hong Kong is to be considered a separate entity from mainland China for another 40 years. Nobody is going to take offence and deny slots by considering them differently
Qantas - Qantas Frequent Flyer
26 Jun 2015
Total posts 17
Sydney to Manila would be interesting. Manila needs a new up to date fresh airline.
21 May 2012
Total posts 11
Surely "Virgin Australia aims for forth Asian route by end of 2018" with SYD>DPS, BNE>DPS and MEL-HKG already in place :)
Singapore Airlines - The PPS Club
11 Sep 2015
Total posts 47
Would be good to see some competition out of Brisbane for SQ and QF.
Hi Guest, join in the discussion on Virgin Australia aims for second Asian route by end of 2018