Virgin Blue reduce domestic capacity 8%
400 Full Time Equivalent jobs are on the line
http://www.asx.com.au/asxpdf/2009021...6bd7235l5g.pdf 5 aircraft will be parked for 2009. |
What flights/routes will be cut?
There are no details.... |
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If I was a DJ employee, I would be rather disappointed with the company leadership in offering $1 fares one month and laying off 400 staff the next...
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I understand your logic and agree that the market must be stimulated in various ways. But for every $200 seat that you give up trying to sell, you need to sell 200 of them at $1 to generate the same income. As soon as you have sold any of those seats at the discount rate, you have lost the chance to sell them at the regular rate.
I would love to see some data which illustrates how many people decided to jump on a flight purely to utilise a discount fare vs those were who were planning to fly from A to B anyway and by pure luck managed to score a cheap seat instead of the regular fare that they were expecting to pay. |
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- People talk about - Rmeinds people that cheap fares can be had with Virgin etc I'd say most of the people buying these fares wouldn't have flown the trips without the sale. And as was noted above - once bought, Virgin have the ability to - Sell baggage $20 - Live TV $4.90-10 - Food (say $12 for a sandwich & Wine) So that $1 fare could well turn into a $42 fare. I also reckon a few people book them and don't actually fly - I have done this with a $1 JQ sale before. |
PR can work both ways though - I know a few people who have responded to an ad campaign; jumped onto the internet to book a flight and found nothing available. Has generated a vision of bait advertising.
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This has appeared on one of the databases:
776 30740 NEW B737-7BX VH-VBT Stored at Melbourne (MEL) Virgin Blue Airlines ex N365ML Midway Airlines (1993) |
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Does anyone know which flights will get canned? I guess a lot of flights will go if they reduce capacity by 8%.
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Where is there too much frequency? That could be the problem perhaps...Any Virgin Blue member care to elaborate on these reductions? |
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Adelaide has already lost capacity with the introduction of E190's on some MEL-ADL services. |
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