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Old January 19th, 2011, 12:09 PM   #61
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Quote:
Originally Posted by deasine View Post
Yes, but I really don't think Skyteam is the right alliance for the airline.

Keep in mind, Virgin Atlantic Flying Club's partners are mostly from Star Alliance.
Thats true............................I dont think it will be OneWorld though.
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Old January 19th, 2011, 05:00 PM   #62
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Quote:
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Yes, but I really don't think Skyteam is the right alliance for the airline.

Keep in mind, Virgin Atlantic Flying Club's partners are mostly from Star Alliance.
Doubt Lufthansa would be very happy about them joining though!
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Old January 19th, 2011, 09:12 PM   #63
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Doubt Lufthansa would be very happy about them joining though!
That's the thing...they don't seem to fit in Star Alliance in that sense, unless Branson works out some deal with Lufthansa, which doesn't seem to be typical of Branson.

I'll admit I'm just not a fan of the entire SkyTeam alliance and some of its airlines, but ill admit its probably the only alliance that could work out I'm favor for both Virgin Atlantic and its alliance carriers. SkyTeam doesn't yet have an airline and vase in the UK and Virgin Atlantic's entry can allow for a vast network of connected hubs across Europe. I wouldn't be surprised if some sort of trans-atlantic deal agreements work out between Air France-KLM,Delta, and Virgin Atlantic if it does enter thealliance. Their entry to SkyTeam will also set the groundwork for other Virgin airlines to enter SkyTeam, such as V Australia and Virgin Blue (which has deals with Delta).

I mean the only thing that is stopping Virgin Atlantic from joining SkyTeam is Singapore Airlines, bit they are interested in selling their shares off.
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Old January 20th, 2011, 01:03 PM   #64
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Star Alliance carrier Air NZ just bought a 15% stake in Virgin Blue. The plot thickens...
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Old January 20th, 2011, 03:48 PM   #65
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Old January 20th, 2011, 05:59 PM   #66
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Star Alliance carrier Air NZ just bought a 15% stake in Virgin Blue. The plot thickens...
Here we go :

Air NZ buys stake in Virgin Blue
21 January 2011
New Zealand Herald

Airline looks to gain foothold in Australian domestic market through strategic move

Air New Zealand announced last night it had bought a substantial shareholding in the Australia-based airline Virgin Blue.

Chief executive Rob Fyfe said it was a planned acquisition of between 10 per cent and 14.99 per cent of the company.

With Virgin Blue valued at A$972.5 million ($1.27 billion), the stake will cost Air New Zealand somewhere between $126 million and $190 million.

Aviation expert Peter Clark said the deal was a good move but it would not make any difference for air travellers.

``This is very important for Air New Zealand to gain a foothold into the Australian domestic market and further afield to the Virgin Group in Australia to operate into Asia.

``It's a strategic move for Air New Zealand and its development as a company and a legacy airline to be part of the global expansion of airlines,'' Mr Clark said.

Last month, Air New Zealand and Virgin Blue won approval from Transport Minister Steven Joyce to co-operate on routes across the Tasman.

The decision followed approval being granted by Australia's anti-trust regulator, reversing its earlier view, after the two airlines gave guarantees on growth in capacity.

Mr Joyce was also swayed by their commitment to maintain passenger numbers on the Tasman.

The two airlines will code-share on Tasman routes and connecting domestic flights and offer reciprocal frequent flyer and lounge access agreements.

Their alliance was in response to a two-airline strategy begun by Qantas where its low-fare Jetstar unit operates domestically in New Zealand and links to longer-haul flights on its parent airline.

The alliance is expected to benefit the airlines by tens of millions of dollars a year and fortify them against rivals Qantas group and Emirates on the highly competitive Tasman route.

Mr Fyfe said the investment in Virgin Blue was part of the airline's strategy to develop scale and reach in the region. The Tasman alliance with Virgin Blue had been the first step.

Yesterday's announcement cemented the relationship between the two and demonstrated Air New Zealand's confidence in Virgin Blue, he said.

Mr Fyfe said there was no intention to make a takeover bid for Virgin Blue.

Air New Zealand has notified the Australian and New Zealand stock exchanges of the deal and plans to make a further announcement about the shareholding to the exchanges before today's start of trading.
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Old January 21st, 2011, 04:15 AM   #67
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Virgin warned before wheel cracked
21 January 2011
The Age

VIRGIN Blue was warned that wheels on its Boeing 737 aircraft could crack months before a wheel broke apart after landing in Melbourne, investigators have revealed.

A subsequent examination of wheels in Virgin Blue's 737 fleet found 10 posed a similar risk, and they were removed from service.

The Australian Transport Safety Bureau launched its investigation when Virgin Blue pilots reported that after landing in Melbourne on October 20, 2009, the plane required unusually heavy steering and more power than normal to get to the terminal.

An inspection revealed a wheel was tilted at an odd angle and had broken at the hub.

It was later found to be riddled with fatigue cracks.

Wheel manufacturer Honeywell Aerospace began receiving reports in 2008 of hub fractures and cracking in the wheels. In May 2009, Honeywell recommended ultrasonic testing on wheels "with a history of fatigue cracks".

"Considering that at the time . . . [Virgin Blue] had no experience or history of cracking being detected . . . the decision not to introduce the additional ultrasonic inspection was reasonable," investigators found.

In August, Boeing issued a service letter recommending periodic ultrasonic tests. Virgin Blue discussed with its maintenance contractor what was needed for ultrasonic inspections.

In September, the wheel's tyre was changed but the ultrasonic inspection for cracks was not run because Virgin Blue's maintenance contractor did not have the required equipment in place. The wheel cracked five weeks later.

Yesterday, Virgin Blue said fatigue cracks were then an emerging issue affecting Boeing 737 operators worldwide. "We were in the process of enacting the advice we had received when it happened. There's no suggestion that we weren't acting to the highest standards," said Virgin Blue spokesman Colin Lippiatt.
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Old January 22nd, 2011, 08:32 AM   #68
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Old January 22nd, 2011, 09:39 AM   #69
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With Virgin Blue under its wing, Air NZ muscles up for competition with Qantas
22 January 2011
The Australian

AIR New Zealand has signalled a fresh competitive assault on the Qantas Group as it explores additional ways of working with new equity partner Virgin Blue.

But the Kiwi carrier also expects to make money from its $145 million investment as it explores partnership opportunities in areas such as maintenance, long-haul flying and expanded codeshares on domestic routes.

Air NZ chief executive Rob Fyfe was optimistic yesterday that the investment would provide impetus for the carriers to build on their recently cemented trans-Tasman alliance.

He believed this would benefit both sides and boost competition against the Qantas Group in what he sees as an increasingly unified Australasian market.

Mr Fyfe said Air NZ had been looking at Virgin for some time and saw its 14.9 per cent stake in the carrier as the best way to gain traction in the growing Australian market.

``We've determined that we don't want to operate in our own right in Australia, we've also determined that we don't want to take over an Australian airline,'' Mr Fyfe said. ``But we would like to have a position in that market so we've chosen to do that by taking a 14.9 per cent stake in Virgin Blue.''

Air NZ used Deutsche Bank to buy the shares off-market at an average price of 44c and funded the acquisition through free cashflow. Mr Fyfe said the investment was a long-term position for Air NZ, which believed Virgin shares were undervalued and that the industry was coming out of a difficult cycle with ``some strong forward prospects''.

He said that the investment of almost 15 per cent allowed Air NZ to participate in any upside at Virgin without creating issues with Australian foreign investment or takeover requirements. Air NZ believed significant performance improvements at Virgin would come from its decision to exit domestic New Zealand operations, the trans-Tasman alliance and its strategy to move into the business and corporate market.

``So when you put all those together you see many tens of millions of dollars of potential upside value to the bottom line of Virgin Blue and certainly we don't believe that's reflected in the current share price performance,'' Mr Fyfe said.

New opportunities likely to be explored include partnerships on long-haul routes to allow them to be developed more quickly, codeshares on stand-alone routes within Australia and pooling of spare parts and engines on Boeing 777s.

Mr Fyfe did not see a seat on the Virgin Blue board as necessary and noted that comments that it would not seek a board seat for six months did not mean it would seek one afterwards.

``It's partly a matter of signalling that this action we've taken is not hostile in any way -- we want to work collaboratively with Virgin Blue and its existing shareholders,'' he said.

``But I don't have any particular expectation that we need a board seat to explore opportunities between the two airlines.''

Analysts yesterday welcomed the investment as a positive strategic move by Air NZ.

Investor service Moody's said it would not affect the airline's Baa3/stable credit rating.

``The impact on Air New Zealand's financial profile is relatively small, given its strong liquidity and cash holdings,'' said Moody's analyst Ian Lewis.

Air NZ closed up 1c at $1.10 while Virgin eased 1c to 43c.
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Old January 23rd, 2011, 02:55 PM   #70
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Source:http://www.arabianbusiness.com/etiha...ic-375533.html

Quote:
Etihad mulls offer for Branson’s Virgin Atlantic
By Joanne Bladd
Sunday, 23 January 2011 3:49 PM


Etihad Airways is reportedly mulling an offer for Sir Richard Branson’s Virgin Atlantic, though Abu Dhabi’s flag carrier has refused to confirm or deny reports it has expressed interest in a deal.

Etihad’s CEO James Hogan wrote to Branson’s advisor, Deutsche Bank, to express interest in buying a controlling stake in the Heathrow-carrier, which was put up for sale in November, the Sunday Times reported.

A spokesperson for Etihad refused to comment on a possible tie-up.

“We talk regularly and frequently to many airlines and a range of other businesses from all over the world about business issues and opportunities,” the spokesperson said.

Branson last week said he may sell his 51 percent stake in the carrier, if he decides Virgin Atlantic needs more than an alliance to allow it to compete with mergers such as that between British Airways and Madrid-based Lineas Aereas de Espana.

The remaining 49 percent stake in Virgin Atlantic is held by Singapore Airlines, following a $930m deal in 2000.

The airline is expected to offload its stake, after branding it an “underperforming” investment.

Etihad last month said it would increase frequencies on routes from Abu Dhabi to key European cities, such as Paris and Milan, in a bid to secure a greater slice of the corporate travel market.

The state-backed airline announced a 29 percent rise in revenues to $2.95bn in 2010. Etihad has a stated aim of achieving profitability by 2012.
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Old January 23rd, 2011, 05:39 PM   #71
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Virgin withdrawing Toronto service
22 January 2011
The Globe and Mail

Virgin America will be withdrawing its Toronto service in April, less than 10 months after it introduced the Canadian flights. The low-cost carrier began offering daily service last June between Toronto and California's two busiest air terminals, in Los Angeles and San Francisco. “In the smaller Toronto-West Coast markets, we were not able to stimulate demand as quickly as we would have liked,” Virgin sales vice-president Diana Walke said in a statement Friday. Virgin said it will “indefinitely suspend” its service to Toronto's Pearson International Airport on April 6, focusing instead on U.S. markets such as Dallas-Fort Worth. Virgin, known for its cabin mood lighting, said it hopes to return to Toronto “at some point” from its California base.
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Old January 27th, 2011, 01:54 PM   #72
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Old January 27th, 2011, 04:52 PM   #73
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Virgin America to adopt Sabre reservations and operational platforms
27 January 2011
Airline Industry Information

Virgin America said yesterday that it has chosen Sabre Airline Solutions’ SabreSonic Customer Sales and Service (CSS) to power its reservations system.

In addition the airline will integrate its flight operations and crew scheduling functions via Sabre’s AirCentre Operations systems.

The new Sabre reservations and operational systems are expected to be implemented later this year.

Separately, Virgin America’s existing Global Distribution System (GDS) agreement with Sabre has been extended under a new multi-year agreement, allowing Sabre Connected travel agents to continue to fully access Virgin America flights and ancillary revenue offerings.

No financial details were disclosed.
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Old January 27th, 2011, 04:53 PM   #74
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Plenty of headwinds as Virgin Blue plots new course, say analysts
27 January 2011
The Australian

ANALYSTS moved quickly yesterday to downgrade estimates of Virgin Blue's full-year earnings after the airline revealed its first-half net profit would fall to as little as $23 million.

They warned that capacity increases and market softness would continue to dog Australia's No 2 carrier in the second half as its decision to snare a bigger part of the business market caused short-term cost increases.

But they support the airline's long-term strategy to lessen its dependence on the leisure market and build up its corporate and business customer base.

Virgin's market update by chief executive John Borghetti on Tuesday indicated underlying pre-tax profit would be about the same as last year, at $70m to $75m. But it said net profit after tax would fall by up to 63 per cent as a result of the impact of September's outage of its Navitaire reservation system and a $17m non-cash charge for future ineffective hedges.

It also warned that the Queensland floods and weak consumer spending could hit second-half revenue by as much as $40m.

More than half of Virgin's business involves Queensland.

The Macquarie Equities team noted the downgrade was the third since May and warned of continuing risks to yield at the airline. It reduced its 2012 underlying profit before tax estimate by 27 per cent to $53m, implying a second-half loss of $21m.

``VBA is stuck between Jetstar and Tiger at the LCC end of the market and (Qantas) at the premium end, leaving its earnings highly vulnerable to domestic softness, particularly at a time when capacity is growing,'' it said.

Macquarie expects Virgin to trim capacity growth to 5.2 per cent, from the original management guidance of up to 8 per cent, and trim costs to offset the investment in new product.

It said the second-half outlook remained weak even with renewed capacity, but it retained its neutral recommendation.

JPMorgan downgraded its full-year earnings per share forecast by 21 per cent and lowered its price target from 52c to 50c, while retaining a neutral recommendation.

Predicting a full-year 2011 underlying PBT of $57m, it also lowered its fiscal 2012 forecast by 5 per cent.

The bank's analysts remained supportive of the airline's strategy, but that noted Air New Zealand's 14.9 per cent stake had reduced liquidity in the stock.

``However, we expect rising fuel costs, continued downward pressure on domestic yields (particularly in the leisure segment) and the Queensland floods to weigh on FY11 earnings,'' they said.

A more optimistic view at Deutsche Bank, which has a buy recommendation on Virgin, did not prevent analysts from downgrading their full-year underlying PBT forecast from $89.6m to $73.8m.

Virgin's first-half underlying PBT guidance was ahead of Deutsche's expectations of $60.2m, but it predicted tough times in the leisure market in the second half, with capacity growth restricting increases in yield. But it expected an uptick in fiscal 2012.

``We continue to expect VBA's strategy of partnering with international airlines (Etihad, Delta and Air New Zealand) to increase its footprint and capture a larger share of the premium market should be successful and should deliver benefits from FY12 onwards,'' it said.
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Old January 28th, 2011, 09:17 AM   #75
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Virgin Atlantic chief criticises Thames estuary airport plan

(ADPnews) – Jan 24, 2011 – The plan by London mayor Boris Johnson to build a new airport on the Thames estuary is uneconomical and impossible to complete, the Financial Times quoted Steve Ridgway, chief executive of Virgin Atlantic, as saying.

Ridgway was the airline chief that voiced the harshest criticism since Johnson embarked on a campaign last week to convince the government to review its opposition to the building of a new airport in the south-east.

Johnson presented an aviation report by Daniel Moylan, deputy chairman of Transport for London, requesting the building of four new runways either on a new location or by expanding the existing airports of Gatwick or Stansted.

British business and aviation experts are concerned that the government’s decision not to build any new runways in the London area could have a bad impact on economy as airlines are likely to relocate to airports that offer greater capacity in cities on the continent.

Company website: www.virgin-atlantic.com
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Old January 28th, 2011, 09:31 AM   #76
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Source:http://www.businesstraveller.com/new...-for-refurbish

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Virgin's Newark Clubhouse to close for refurbishment
Published: 27/01/2011 - Filed under: News »

Virgin Atlantic's Clubhouse at Newark airport will close for refurbishment from January 31 until February 18, during which time premium passengers will be directed to the SAS lounge.

The last flight eligible for entry into the Virgin Clubhouse before the temporary closure will be VS18 on January 31, after which Upper Class passengers and gold card holders will be accommodated in the SAS lounge, located in Terminal B next to gate 60.

The lounge has wifi internet access, and guests can avail of complimentary wine and beer as well as "a wide selection of soft drinks".

Virgin says it apologises for the closure, but adds that it looks forward to welcoming passengers back to a "wonderfully improved Clubhouse in February".

In a Q&A section on the carrier's website Virgin says that "This route is very busy most of the year and it has been hard to find a quiet period to close".

For more information visit virgin-atlantic.com.
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Old January 28th, 2011, 11:17 AM   #77
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Virgin Blue Cancels All Flights To And From Bali Friday
28 January 2011

MELBOURNE (Dow Jones)--Virgin Blue Holdings Ltd. (VBA.AU) cancelled all flights Friday to and from Bali because of volcanic ash in the vicinity of the island's Denpasar airport.

The airline said in a statement it was cancelling the flights as a precautionary measure.

Virgin said it would update the situation at 2300 GMT after receiving further advice from Australia's Darwin Volcanic Ash Advisory Centre.

The ash is coming from the Tengger Caldera volcano in eastern Java.

It said guests due to travel to Denpasar can either cancel or change their flight plans to another flight up to Feb. 3 without incurring a fee and is asking those in Bali due to fly out today to remain at their accommodation until further notice.

In April last year, ash from an erupting volcano in Iceland grounded air traffic across Europe because of safety concerns that tiny particles in the ash could affect aircraft engines.
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Old January 28th, 2011, 07:04 PM   #78
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Old January 28th, 2011, 07:07 PM   #79
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Old January 28th, 2011, 07:13 PM   #80
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