Another new Airline for OZ

[Greg F]

As if you would be so stupid to start an airline at this point in time........
Another OzJet attempt in my opinion............

[Philip Argy]

The website is blank at present but here's what it looked like when it was visible:
http://209.85.141.104/search?q=cache...lnk&cd=1&gl=au

Although the entity Visajet Airlines Pty Ltd was registered in October 2006 in Bentleigh, Victoria, it still does not appear on the Australian Business Register which means it has no ABN. That suggests to me that it won't be getting off the ground any time soon.

[Marty H]

http://www.theaustralian.news.com.au...015661,00.html

[Clarke P]

Bankstown?? Interesting.

[Torin Wilson]

Originally Posted by Philip Argy

The website is blank at present but here's what it looked like when it was visible:
http://209.85.141.104/search?q=cache...lnk&cd=1&gl=au

Although the entity Visajet Airlines Pty Ltd was registered in October 2006 in Bentleigh, Victoria, it still does not appear on the Australian Business Register which means it has no ABN. That suggests to me that it won't be getting off the ground any time soon.

VivaJet Airlines Pty Ltd ACN 122 128 090

their website still works - www.vivajet.com.au/index.html

[Marty H]

Pie in the sky rubbish so it seems

http://www.news.com.au/heraldsun/sto...72-664,00.html

[Greg F]

Thats funny!

Would 'YOU' invest in a start up airline in Australia at the moment? with our long term airlines feeling the pinch, some facing losses..... Grounding A/C.... Cutting Services......

[Adam G]

Originally Posted by Lukas Mahoney

Yet they give an example of $49 ADL-BNE, which is just impossible for a airline to charge when they offer:

• Complimentary meals and drinks/even wine
• Frequent Flyer program

Seems like a Student Project to me, plus if it was true, they must have VERY deep pockets

Lukas - it's far from impossible if yield managed - I think you'll find few airlines make money off the cheapest fares on board - they make their $$ from the higher yield fares.

No-one sells entire aircraft at low cost fares, the whole flight is yield managed to ensure that it breaks even or makes money if possible.

[Chris Tully]

Originally Posted by Adam G

No-one sells entire aircraft at low cost fares, the whole flight is yield managed to ensure that it breaks even or makes money if possible.

Not so in the LCC world Adam. LCC's work on a mix of fare variation and seat factor. As LCC's do not have a great range of fare subclasses that legacy carriers have, they have less flexibility in sharper yield management. There is a balance on fare pricing and seat factor. So long as the seat factor is sufficient based the pricing levels they control for that particular sector then the flight will prove profitable. I know with JQ they need to meet seat factors of at least 70 odd percent in-order to earn a return on the sector subject the fare variation and uptake.

[Adam G]

Chris - I think we are talking about the same thing...

For example lets say that an aircraft needs to make $XYZ to break even on a flight.

To make up $XYZ the airline then develops a fare strategy - that says the first A% of seats sells at $X, the next B% at $Y etc etc - now that alone only generates revenue if you get enough pax on board to reach your break even load factor (say 70% as your quoting for JQ). Therefore you also create different fare classes - say sale, restricted, flexible, fully flexible, Y+ etc. By doing that on particular routes the a/c may actually become profitable well below the normal break even load factor (for example 50 fully flexible tickets may result in the flight breaking even at the same point that the bottom 2 fare classes would normally have to be empited by with 100+ seats sold) - then the airline can offer a further batch of low yield seats as from that point any revenue on board (assuming it's profitable revenue which sometimes sale fares are not) is a nice addition.

Using load factor as a break even point for a majority of airlines, including all but the very basic of LCC's won't work as there are enough fare classes in play to provide a significent difference in the yield regardless of load factor.