Category Archives: Virgin Australia

Etihad Airways’ equity alliance strategy, is Alitalia the next partner?

Etihad Airways (Abu Dhabi) has no intention of joining one of the traditional airline alliances. Instead it is quickly building an alliance of aligned airlines in which its has an equity share. The latest target is reportedly loss-making Alitalia (2nd) (Rome).

Alitalia, which is currently 25 percent owned by the Air France-KLM Group (Air France and KLM are code-share partners of Etihad), was rescued from bankruptcy in 2008. It was acquired by a consortium of Italian companies including bank Intesa Sanpaolo and is reportedly discussing with Etihad Airways about a possible new partnership according to this report by Reuters.

Read the full report: CLICK HERE

Meanwhile Etihad Airways is moving ahead to increase its equity in Virgin Australia Airlines (Brisbane), following recent approval by the Foreign Investment Review Board to increase from a 10 percent shareholding to 19.9 percent.

Etihad Airways equity alliance is a planned alternative to the legacy airline alliances. The Etihad equity alliance now has five members, following a deal to invest in Serbia’s national airline, Air Serbia (Belgrade).

Etihad Airways also is awaiting regulatory approval for investment in a sixth airline, India’s Jet Airways (Mumbai), which gives the equity alliance a combined total of more than 420 destinations, 500 aircraft and more than 96 million passengers each year.

In other news, Etihad Airways has announced new services for the Australia market including:

Airbus A380 aircraft from Sydney and Melbourne to Abu Dhabi
Construction of premium lounges at Sydney and Melbourne Airports from 2014
Additional flights from Melbourne and Brisbane to Abu Dhabi
Commencement of nonstop flights between Perth and Abu Dhabi

Copyright Photo: Paul Denton/AirlinersGallery.com. Painted in the special Formula 1 livery to promote the Abu Dhabi’s Grand Prix, Airbus A340-642X A6-EHJ (msn 933) climbs away from the runway at Geneva.

Etihad Airways:

Virgin Australia starts its new code share agreement with Airberlin

Virgin Australia Airlines (Brisbane) has announced a reciprocal code share and frequent flyer agreement with Airberlin (Berlin), Germany’s second largest airline.

The code share flights commence on August 1, 2013, subject to government approval, Virgin Australia will code share on Airberlin’s daily direct services from Abu Dhabi to Dusseldorf and Berlin. Airberlin will also code share on Virgin Australia’s Abu Dhabi to Sydney service, its Phuket to Perth service and on nine of its domestic services within Australia.

As part of the new agreement, members of Virgin Australia’s loyalty program Velocity Frequent Flyer and Airberlin’s top bonus program will receive reciprocal benefits, with the ability to earn and redeem Points or miles, regardless of which airline is operating the flight.

Airberlin operates daily direct services between Abu Dhabi and Berlin and between Abu Dhabi and Dusseldorf. The Airbus A330-200 operated services offer Full Flat seats with a massage function and 15 inch LED monitors in Business Class ensuring a superior level of comfort. In Economy Class, Airberlin offer new seats with anti-thrombosis cushions, a complimentary drinks service and a new in-seat entertainment system.

Top Copyright Photo: John Adlard/AirlinersGallery.com. Airbus A330-243 VH-XFC (msn 1293) arrives at the Sydney hub.

Virgin Australia:

Airberlin:

Bottom Copyright Photo: Ton Jochems/AirlinersGallery.com. Airbus A330-223 D-ABXA (msn 288) in the Oneworld scheme taxies to the runway at Palma de Mallorca.

Virgin Australia to fly the Mebourne-Hamilton Island route starting on August 15

Virgin Australia Airlines (Brisbane) has announced that from August 15, 2013 it will commence services between Melbourne and Hamilton Island.

The airline will operate its Boeing 737-800 aircraft on the new route with 8 Business Class and 168 Economy Class seats.

The flights will depart Melbourne at 8:30 am (0830) on Tuesdays, Thursdays, Saturdays and Sundays, arriving into Hamilton Island at 11:30 am (1130). The return flight departs Hamilton Island at midday (1200) on Tuesdays, Thursdays, Saturdays and Sundays arriving into Melbourne at 3:00 pm (1500). During off-peak months (between February and June), services will only operate on Tuesdays, Thursdays and Saturdays.

Virgin Australia:

Domestic Route Map:

Video: Hamilton Island.

Virgin Australia to upgrade the Perth-Sydney route to all Airbus A330s on weekdays, expands its code-share program with Etihad Airways

Virgin Australia Airlines (Brisbane) has announced that from October this year, it will operate its Airbus A330 aircraft on all Perth-Sydney weekday flights.

The introduction of a seventh Airbus A330 to Virgin Australia’s fleet later this year will see these aircraft operate all Perth-Sydney and Perth-Melbourne weekday services and two out of three Perth-Brisbane weekday services.

The airline now offers all customers on flights between Perth and the East Coast fully inclusive hot meals and beverages, as well as in-flight entertainment.

“We have had an extremely positive response to the introduction of our Airbus A330 “Coast To Coast” service and we are very pleased to now be offering this on all Perth-Sydney and Perth-Melbourne weekday flights.

The Airbus A330 aircraft feature Virgin Australia’s designer Business and Economy Class product, which includes luxury leather seating, generous seat recline and a range of gourmet food offerings.

In other news, Virgin Australia has announced flights to Milan, Italy and Amsterdam, Netherlands will be added to its codeshare agreement with Etihad Airways (Abu Dhabi) from June 3, 2013.

The announcement follows recent regulatory approvals being granted allowing Virgin Australia to codeshare on flights into Italy and the Netherlands.

Customers travelling on Virgin Australia’s network will be able to connect through Abu Dhabi on to Milan or Amsterdam on the same ticket. Velocity Frequent Flyer members will also be able to earn points and status credits on these routes.

The codeshare flight between Abu Dhabi and Milan will be operated by a two-class Airbus A330-200 seven times per week. Abu Dhabi to Amsterdam will be operated by a two-class Airbus A330-200 seven times per week. Etihad and Virgin Australia fly 28 times per week from Australia to Abu Dhabi, connecting to 14 codeshare destinations in Europe.

This is a continuation of the roll-out of Virgin Australia’s alliance with Etihad Airways, which already includes 50 codeshare and interline destinations globally. Virgin Australia will continue to work closely with Etihad Airways to develop a network aligned with the needs of their customers.

Etihad Airways currently operates flights from Sydney, Melbourne and Brisbane into Abu Dhabi.

Virgin Australia:

Virgin Australia moves one step closer to acquiring 60% of Tiger Airways Australia

Virgin Australia Holdings Limited (Virgin Australia Airlines) (Brisbane) today (May 28) welcomed confirmation from the Foreign Investment Review Board that it has no objections to the proposed acquisition of 60 percent of the existing shares in Tiger Airways Australia Pty Ltd (Tiger Australia) (Melbourne).

This confirmation satisfies another condition for the proposed acquisition of Tiger Australia, which will enable Virgin Australia to access the budget market segment and expedite the growth of Tiger Australia.

The proposed transaction still remains subject to certain conditions and Virgin Australia expects the transaction to be completed by mid-July.

Top Copyright Photo: Ivan K. Nishimura/Blue Wave Group. Virgin Australia’s brand new Boeing 737-8FE WL VH-YFF (msn 40994) and crew pass through Honolulu on delivery.

Above Copyright Photo: Virgin Australia.

Virgin Australia:

Tiger Airways (Australia):

Bottom Copyright Photo: Peter Gates/AirlinersGallery.com. Tiger Airways’ Airbus A320-232 VH-VNH (msn 3734) stops at Brisbane.

Romance is Back Video:

The High Court in Singapore approves the Virgin Australia acquisition of Skywest Airlines

Virgin Australia Airlines (Brisbane) has received the approval of the High Court in Singapore to acquire Skywest Airlines (Perth). Previously the Australian Foreign Investment Review Board cleared the merger and Virgin Australia on March 13 received approval from Skywest Airlines Ltd shareholders of the proposed acquisition of 100% of the issued share capital of Skywest, pursuant to a scheme of arrangement under the laws of Singapore. The acquisition process is now complete.

Copyright Photo: Peter Gates. Skywest Airlines already operates a fleet of ATR 72-500s on regional routes for Virgin Australia. ATR 72-212A (ATR 72-500) VH-FVI (msn 955) is pictured on the ramp at Brisbane.

Virgin Australia:

Virgin Australia-Skywest:

Skywest Airlines:

Skywest Airlines operates an extensive route network under its own brand in Western Australia.

Video:

Virgin Australia to operate the Airbus A330 between Brisbane and Perth

Virgin Australia Airlines (Brisbane) has announced it will commence flying its two-class wide-body Airbus A330 aircraft from Brisbane to Perth for the first time starting on May 15.

The daily Airbus A330 flights to Perth on weekdays will depart Brisbane at 8:45 am (0845) and 8:15 pm (2015), arriving at Perth at 12:25 pm (1225) and 11:55 pm (2355) respectively. The return A330 services from Perth will depart at 12:30 pm (1230) and 10:45 pm (2245), arriving in Brisbane at 6:50 pm (1850) and 5:05 am (0505) (+1 day) local time.

A third weekday return service, operated by a Boeing 737 aircraft, will depart Brisbane at 5:30 pm (1730) and Perth at 7:35 am (0735) arriving at 9:25 pm (2125) and 1:55 pm (1355) respectively.

The weekend A330 departure is on Sunday departing Brisbane at 8.15 pm (2015) and Perth 10:45 pm (2245) arriving at 11:55 pm (2355) and 5:05 am (0505) (+1 day) respectively. These are complemented on Saturdays and Sundays by the existing Boeing 737 schedule unless stated otherwise.

On the financial side, Virgin Australia Holdings reported a A$61 million half-year profit before taxes for the six months ending on December 31, 2012.

Read the full report: CLICK HERE

Virgin Australia:

Virgin Australia wins clearance to acquire Skywest Airlines

Virgin Australia Airlines (Brisbane) has received government clearance to continue its stock acquisition of regional carrier Skywest Airlines (Perth).

The airline issued the following statement:

Virgin Australia Holdings Limited welcomed the ACCC’s clearance of the proposed acquisition of 100% of the issued share capital in Skywest Airlines Ltd (Perth) pursuant to a scheme of arrangement which is subject to the laws of Singapore.

Under the agreement, Skywest would become part of the Virgin Australia brand but would continue to operate under its current Air Operator’s Certificate (AOC) with its own management team, based in Western Australia. This would enable Virgin Australia to fast-track its growth in regional Australia and develop a more integrated network, service and frequent flyer program for the benefit of its customers.

Virgin Australia CEO John Borghetti said: “The ACCC’s clearance represents an important step for Virgin Australia in completing the proposed acquisition of Skywest.

“This acquisition will enable us to accelerate our expansion in the high growth fly-in-fly-out (FIFO) and regional markets, increasing competition in these important segments and bringing new benefits to customers.

“It will also be very positive for business and tourism, particularly in Western Australia and regional Australia, as we will invest to support the growth of Skywest”, Mr Borghetti said.

The proposed transaction still remains subject to certain conditions and regulatory approvals, including Foreign Investment Review Board approval, Skywest shareholder approval and the approval of the Singapore High Court.

Top Copyright Photo: Peter Gates. Skywest Airlines currently operates 10 ATR 72-212As (ATR 72-500s) on feeder routes for Virgin Australia Airlines in their colors. VH-FVH (msn 954) prepares for the next flight at Brisbane.

Skywest Airlines (Australia):

Virgin Australia Airlines:

Virgin Australia Airlines-Skywest Airlines:

Skywest’s routes in western Australia:

Please click on the map for the full-size view.

Bottom Copyright Photo: Micheil Keegan. The in-house livery of Skywest Airlines and the Airbus A320 is now likely to be retired. Airbus A320-231 VH-FNP (msn 429) arrives back at the Perth, Western Australia base painted in the 2003 livery.

Virgin Australia makes three bold moves

Virgin Australia Holdings Limited (Virgin Australia Airlines) (Brisbane) is making three bold moves. The company issued the following statement:

Virgin Australia Holdings Limited today announced three transactions designed to accelerate the growth of the business, diversify its earnings and increase competition in Australia.

The transactions include:

making a placement of shares to Singapore Airlines (Singapore), which will see Singapore Airlines owning a 10% interest in Virgin Australia Holdings;
entering a Share Purchase Agreement to acquire 60% of the existing shares in Tiger Airways Australia (Melbourne) from Tiger Airways; and
entering an in-principle agreement with Skywest Airlines (Perth) to acquire 100% of its business.

Virgin Australia Chief Executive Officer John Borghetti said: “The transactions announced today are in line with Virgin Australia’s strategy to become the airline of choice in all markets, in order to diversify our earnings and drive growth opportunities for the business.

“The acquisition of Tiger Australia and Skywest provides Virgin Australia with a strong presence in the budget, Fly-in Fly-Out (FIFO) and regional markets, enabling us to fast-track our expansion in these areas and become a stronger competitor”, Mr Borghetti said.

“These transactions will bring important benefits to Australia, driving growth in jobs, tourism and competition”, Mr Borghetti said.

If approved, following the completion of the transactions, the Virgin Australia Group will expand to 139 aircraft and over 9,000 employees .

Virgin Australia will keep the market updated regarding progress on these transactions.

Meanwhile partner Singapore Airlines (Singapore) has ordered 20 Airbus A350-900s and five A380s and will assign its 20 Boeing 787-9 Dreamliners to subsidiary Scoot (Singapore).

Top Copyright Photo: Lloyd Fox. If approved, Skywest Airlines (Perth) will become a 100% subsidiary of Virgin Australia. The regional carrier is already operating ATR 72-500s for Virgin Australia in their livery. The Skywest brand used for other Western Australia routes is now likely to disappear.

Virgin Australia:

Skywest Airlines:

Tiger Airways (Australia):

Bottom Copyright Photo: Micheil Keegan. Since Singapore Airlines and its Tiger Airways (Australia) subsidiary are now partners with Virgin Australia, it is unclear if Tiger Airways (Australia), a competitor of Virgin Australia, will continue to use the the Tiger Airways brand in Australia or operate now under the Virgin Australia name. Airbus A320-232 VH-VNO (msn 4053) climbs away from Sydney.

Virgin Australia orders 23 Boeing 737-800 MAX aircraft

Virgin Australia Airlines (Brisbane) today (July 5) announced an agreement with Boeing to order 23 Boeing 737 MAX 8 aircraft, the first in Australia.

The fuel-efficient aircraft will join Virgin Australia’s fleet between 2019 and 2021. The agreement includes four additional delivery options, ensuring flexibility to respond to market conditions.

To align with its current capacity plan for the next three years, Virgin Australia has delayed the delivery of some of its Boeing 737NG aircraft to after 2016, leaving 31 scheduled deliveries of Boeing 737-800 aircraft between 2013 and 2016. This gives the airline flexibility to develop the appropriate mix of narrow-body and wide-body aircraft.

Virgin Australia expects that by the end of 2013, all of its Boeing 737-700 aircraft will have exited the fleet.

Virgin Australia: