Viva Macau Suspended Operation

[Arthur T]

Macau intervenes over budget airline

28-03-2010
Macau's aviation authorities have asked Air Macau to suspend its contract with the budget carrier, Viva Macau.

They said Viva Macau could not pay its fuel bills for two flights that left on Friday, and was hurting the image of Macau.

The President of Macau's Civil Aviation Authority, Simon Chan, told reporters that Viva's business licenses were still active, and the firm could conduct commercial activities - but it could not retain its air operator's certificate and could no longer sell airplane tickets.

Source: http://www.rthk.org.hk/rthk/news/eng...0328&56&657079

Viva Macau operated some services between Macau and Sydney/Melbourne so following the close down there could be passengers stranded at the airport. Hope Australian Aviation Authorities can help resolve any issues from that and perhaps to arrange special flight by V Australia or Qantas to ferry those passengers to their destination.

[Brian Wilkes]

I'm sure CX will pick up and help out.

[Andrew P]

http://yssyforum.net/board/showthread.php?t=5036

[Tony G]

When another airline jumps in and takes on stranded passengers, do they get any financial benefit from it? Does the stranded passenger have to pay again?

[Arthur T]

Originally Posted by Tony G

When another airline jumps in and takes on stranded passengers, do they get any financial benefit from it? Does the stranded passenger have to pay again?

From Regional Practice, they MAY.

In 2008, Oasis Hong Kong collapsed and suspended operations. Passengers stranded and finally they need to pay HK$2500 (tax excl.) for a ticket on Cathay Pacific to continue their journey to London/Vancover.

So the same may happen, or they will simply receive refund if they paid via Credit Card, and you need to book it again.

Finally, the collapse of Viva Macau further illustrates budget carrier will collapse at some point and will never work. Hence I would say it'd be better for Virgin Blue, Pacific Blue, JetStar and Tiger Airways to stop adopting those stupid budget model now and change to high cost luxious model (including free 32KG luggage, 2-3 course meals, Free AVOD and a decent 50" seat width and 38" seat pitch minimum for all passengers) or else you all are risking yourself from collapsing and winding up yourself.

I believe passengers are more willing to pay $150 - 200 for a Sydney - Melbourne Single Ride and be insured from getting their flights cancelled and long delays due to their carrier is collapsing, suspending or simply operational issues that will make them stranded at the airport for days rather than those carriers offering $20 - 30 but you need to risk from all of the above adverse consequences.

[Daniel M]

Originally Posted by Arthur T

From Regional Practice, they MAY.

In 2008, Oasis Hong Kong collapsed and suspended operations. Passengers stranded and finally they need to pay HK$2500 (tax excl.) for a ticket on Cathay Pacific to continue their journey to London/Vancover.

So the same may happen, or they will simply receive refund if they paid via Credit Card, and you need to book it again.

Finally, the collapse of Viva Macau further illustrates budget carrier will collapse at some point and will never work. Hence I would say it'd be better for Virgin Blue, Pacific Blue, JetStar and Tiger Airways to stop adopting those stupid budget model now and change to high cost luxious model (including free 32KG luggage, 2-3 course meals, Free AVOD and a decent 50" seat width and 38" seat pitch minimum for all passengers) or else you all are risking yourself from collapsing and winding up yourself.

I believe passengers are more willing to pay $150 - 200 for a Sydney - Melbourne Single Ride and be insured from getting their flights cancelled and long delays due to their carrier is collapsing, suspending or simply operational issues that will make them stranded at the airport for days rather than those carriers offering $20 - 30 but you need to risk from all of the above adverse consequences.

Absolutely, what a true statement!!

I mean, airlines like Southwest, JetBlue, Ryanair, EasyJet are just doing so horribly...hang on, haven't they all collapsed already?

Great advice Arthur


And airlines like Qantas never cancel flights or have delays??? Can I have some of what you're smoking please....

[Ryan K.]

Originally Posted by Arthur T

From Regional Practice, they MAY.

In 2008, Oasis Hong Kong collapsed and suspended operations. Passengers stranded and finally they need to pay HK$2500 (tax excl.) for a ticket on Cathay Pacific to continue their journey to London/Vancover.

So the same may happen, or they will simply receive refund if they paid via Credit Card, and you need to book it again.

Finally, the collapse of Viva Macau further illustrates budget carrier will collapse at some point and will never work. Hence I would say it'd be better for Virgin Blue, Pacific Blue, JetStar and Tiger Airways to stop adopting those stupid budget model now and change to high cost luxious model (including free 32KG luggage, 2-3 course meals, Free AVOD and a decent 50" seat width and 38" seat pitch minimum for all passengers) or else you all are risking yourself from collapsing and winding up yourself.

I believe passengers are more willing to pay $150 - 200 for a Sydney - Melbourne Single Ride and be insured from getting their flights cancelled and long delays due to their carrier is collapsing, suspending or simply operational issues that will make them stranded at the airport for days rather than those carriers offering $20 - 30 but you need to risk from all of the above adverse consequences.

Awhh.....paying $150 - 200 for a SYD - MEL...having free luggage + meals + AVOD + min 38" pitch....doesn't this sound familiar???yea...OzJet did it back then......but where are they now???

[Will H]

Arthur,
As others have already indicated, debating the existence of LCCs is not going to go far.

What we do need to consider is the cause of the situation, and I'm not satisfied with the reports we have at present.

I have not yet seen Australian Aviation's article, but I wrote a feature article about Viva Macau in 2009. What stood out to me (and continues to as I talk to people at the carrier) is the regulatory constraints. Air Macau has given Viva non-retractable permission to fly to a handful of B-list destinations. Other destinations--Sydney, Tokyo--are at Air Macau's discretion.

Viva wanted to fly to SIN and Air Macau rejected them, even though Air Macau did not and still does not fly to SIN. Subsequently Macau carriers lost the SIN market to Tiger etc.

Air Macau is a story within itself, but I would not be surprised to hear there was politicking to force this action on Viva.

We've never gotten insight into why the original CEO left and why his replacement Con Korfiatis left last year.

The Airways article is severely mis-informed.

Viva is not out to provide an alternative to expensive HKG and CX. Viva aims to promote Macau, not "snaring peanut-paying passengers from its neighboring city Hong Kong".

As for Viva competing with CX, I don't see validity in that. If you want to go to Macau and fly CX, you'll have to go HKG, go into the city, and then take the ferry.

Moreover, until Air Macau started (or is supposed to start) flying to NRT, Viva is the only carrier flying the routes it does. It has no other direct competition.

Macau's future is on tourism, and Viva aims to support that. Air Macau, however, has shown itself interested in funneling passengers from Taiwan to mainland China, and not being Macau's airline. The business community in Macau understands they need an airline committed to Macau as a destination and not Macau as a transit point.

I would be very, very surprised to see this be Viva's end.

[Andrew Ewen]

Entirely predictable , they just had an article in Australian Aviation profiling them as an up-and-coming airline with a bright future . That sort of thing is usually the kiss of death for an airline

[Michael Cleary]

Air Macau, however, has shown itself interested in funneling passengers from Taiwan to mainland China

I hope they are not depending on that now, given the number of direct flights between Taiwan and the Mainland these days.