Virgin Atlantic facing record lossBack to Forum
I can’t imagine that jet fuel is 40% cheaper in Dubai. Both Emirates and the government have consistently and repeatedly denied that there is any form of state support.
If jet fuel was 40% cheaper, and on the open market, then other airlines would be buying it there and tankering it around the world.
BA selected RR engines for their 767s long before the fuel saving winglets were available. They picked the RR engine as it was the same engine as on their large 747-400 order, and so reduced costs due to commonality.11 Mar 2013
I remember reading an article that said while the middle east is obviously in a beneficial position when it comes to oil, jet fuel is a different matter.
I haven’t the faintest idea but I guess oil must go through some process to be converted into jet fuel. I imagine EK, QR etc have to purchase refined jet fuel on the open market like other airlines.
I think where the middle east airline ‘luck’ really lays is
1) it’s geographical position.
And probably more importantly:
2) Extremely pro-aviation government. Little or no night curfews or bans so aircraft can be utilised around the clock. Huge government investment in airport and related infrastructure.
3) A workforce of expats that can get sent home with no reason whatsoever as soon as they start making trouble or underperforming. No pension pots or deficits.
The list goes on…11 Mar 2013
They must must get into South America.
Start a route to Panama and codeshare with http://www.copaair.com/sites/gs/en/Pages/homepage.aspx
Although pretty sure Star Alliance would have something to say about that.11 Mar 2013
Rfergurson, many thanks for your insightful replies, luckily I have forgiven the rest of the posters for nationalism so can now continue to post without enlisting private assasins!
I think you are so right about all the carriers shifting to the Gulf, it just makes sense. Whether VS likes it or not, AUH is beckoning.
DAR is not so simple. I think that it would go via Kilimanjaro, and perhaps only a few times a week. I agree that yields would probably be low, but I reckon a good mix of strong economy loads, good cargo and a few upper pax could work. But again, not a great route for cash! No news yet, sorry, sparkyflyer. VS generally seem to do rejigs in winter, announcing changes in April or May, so keep listening!
CTU is a non starter. Aside from Lagos, which is a huge money spinner, Virgin only flies to world cities, very westernised and rich, somewhere that the brand can be digested well. So that means secondary Chinese cities are off the map for a few years.
Rio will happen, but not likely for about 2 years with 787s.
VS can’t start PEK, cause there are no slots there.
BKK is definitely on the radar, but nothing on this recently. This is certainly Virgin’s kind of route, business and leisure in even measure. Having beach resorts fairly close always seems to entice the planners…
SEA was mentioned a few years back, but not without DL or 787s so a while yet.
Something at the back of my mind says Singapore, this could be wildly successful, SQ have good loads and VS already codeshare with them and could get loads of connections. Plus, SIN is my favourite city in the whole Earth, so why not?11 Mar 2013
It is my sincere hope that Virgin Atlantic remains and sits within the ever shrinking galaxy of airlines. Even just to present BA with the competition.
In all seriousness, Virgin has to try to get to South America – wit the Olympics and that kicking balls cuppy stuff the opportunity in a fast growing group of economies must be there. Not only that but I would have said the brand sits well in such an environment where BA is more staid.
I found it most amusing that Virgin was chosen by the Prime Minister as the charter for the mission to India. BA must have hated that. Who on earth they put in an A346 however I shall always wonder.12 Mar 2013
The trouble with VS is that they have forgotten their original place in the market place……
With the demise of BD, they really have the chance to re-group, be sexy british….re-vitalise the brand…..re-train their staff, and understand their niche audience….
At the moment…….they are percieved as a Chav airline which is jealous of Ba’s market share!
And in my opinion, joining Star makes a hell of a lot more sense than Skyteam!12 Mar 2013