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DL partnerships in trouble? Virgin Australia goes under (voluntary administration)

DL partnerships in trouble? Virgin Australia goes under (voluntary administration)

Old Dec 13, 2021, 7:44 pm
  #76  
 
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Originally Posted by Duke787
The problem is this basically means with DL you can fly to Sydney and that’s it.

Nowhere else in Australia, no New Zealand. So if all your business is Sydney that’s great. Otherwise will need to book separate tickets if you want DL
One should still be able to interline from DL to both QF and VA but it would probably not be too easy to book or convenient to fly...
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Old Dec 13, 2021, 7:48 pm
  #77  
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I just got an email from the VA CEO announcing the change and saying that current benefits for DL customers would be continued.

To the extent that VA and VS are related, it seems strange that VA would defect to UA given the apparently close and continuing relationship between DL and VS.

I had the impression that DL and VA were close partners even if VS wasn't a SkyTeam member.

OTOH, VA had a much less extensive domestic network in Australia than QF (and its affiliates).
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Old Dec 13, 2021, 7:55 pm
  #78  
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Originally Posted by MSPeconomist
I just got an email from the VA CEO announcing the change and saying that current benefits for DL customers would be continued.

To the extent that VA and VS are related, it seems strange that VA would defect to UA given the apparently close and continuing relationship between DL and VS.

I had the impression that DL and VA were close partners even if VS wasn't a SkyTeam member.

OTOH, VA had a much less extensive domestic network in Australia than QF (and its affiliates).
VA and VS are like very distant three times removed family members. They share a common name, but that is all. They just license use of the Virgin brand name.
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Old Dec 13, 2021, 8:07 pm
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Originally Posted by MSPeconomist
I had the impression that DL and VA were close partners even if VS wasn't a SkyTeam member.
DL and the pre-bankruptcy/restructuring VA had a close relationship but the new ship is being steered by a completely new group...
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Old Dec 13, 2021, 8:51 pm
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Originally Posted by flyerCO
VA and VS are like very distant three times removed family members. They share a common name, but that is all. They just license use of the Virgin brand name.
When Virgin Australia VA went into administration all the the shareholders equity was gone.
In the new Virgin Australia Branson (Virgin Group) took on 5%. [From memory was 10% towards the end of the previous structure]. Keeps Branson as the table and getting his payments for use of the Virgin name
https://en.wikipedia.org/wiki/Virgin_Australia_Holdings
https://en.wikipedia.org/wiki/Virgin_Australia
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Old Dec 14, 2021, 8:18 am
  #81  
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Originally Posted by Duke787
Nowhere else in Australia, no New Zealand. So if all your business is Sydney that’s great. Otherwise will need to book separate tickets if you want DL
Yeah, the inability to reach New Zealand seems quite huge, given that not only is QF in OW but AA flies there directly too.
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Old Dec 14, 2021, 8:31 am
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Originally Posted by Duke787
The problem is this basically means with DL you can fly to Sydney and that’s it.

Nowhere else in Australia, no New Zealand. So if all your business is Sydney that’s great. Otherwise will need to book separate tickets if you want DL
Right, and my solution is going to be to not fly DL to Australia/NZ, much like my solution to East Asia has also been to not fly DL. DL is still useful for me for US and TATL, but as a NY based flyer, west of California their value proposition drops quickly. That include HI, where pretty much every itinerary is worse than HA or even UA.
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Old Dec 14, 2021, 9:12 am
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I'm living in the ATL these days but I'm in the same place flight wise as you. DL domestic, Mexico, YYZ/YUL and TATL. Someone else for the rest of Canada, Asia, Central and South America (we'll see if LATAM changes things) and now Australia/NZ. Fortunately, for non-US/Mex/Canada, I book business class so working for elite status in any program is unnecessary to me.

Originally Posted by bennos
Right, and my solution is going to be to not fly DL to Australia/NZ, much like my solution to East Asia has also been to not fly DL. DL is still useful for me for US and TATL, but as a NY based flyer, west of California their value proposition drops quickly. That include HI, where pretty much every itinerary is worse than HA or even UA.
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Old Dec 14, 2021, 9:47 am
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Originally Posted by Duke787
The problem is this basically means with DL you can fly to Sydney and that’s it.

Nowhere else in Australia, no New Zealand. So if all your business is Sydney that’s great. Otherwise will need to book separate tickets if you want DL
Thus the question becomes, if traffic levels resume to Australia, do we see DL start service to MEL and/or BNE to accompany its service to SYD? Even without a partner in Australia, I would have to imagine most traffic to Australia is heading to one of those three places so not having an intra-country partner would not leave DL in as difficult of a position as it may be in right now though DL would also have to sustain all three flights as well as have the aircraft to dedicate to these routes.
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Old Dec 14, 2021, 11:35 am
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What will happen after the Covid disruption, who knows?
My first trip to Oz was in 1991 when PMNW flew LAX-SYD. I was on the inaugural flight which was actually LAX-HNL-SYD.
Next trip was post merger on VA to BNE. On the return VA offered an upgrade to business for about AUD900 that I grabbed. Did another trip using VA.
Also flew to Oz from London via HCM and SGN. USD2300 for RT LHR-Oz with a week long stopover in Vietnam. Another 120,000 SM for rt D1 US-LHR.
And I’ve flown to NZ on China Air via TPE.
I’ve been able to use or earn miles for every trip but all have been with plenty of time and happy to explore on the stopovers.
But if you are flying on a tight schedule, I get that things won’t work.
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Old Dec 14, 2021, 11:54 am
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I must say this news is a shock, VA just started offering redemptions on DL again, and it seemed like the partnership was set to continue.

Could this mean my most requested DL route, ATL-AKL, can happen now? They could even add a AKL-SYD (or AKL-BNE, AKL-MEL) route to utilize the aircraft. The distance isn't that far ATL-AKL and I would certainly prefer transit in AKL rather than LAX. One can dream

Originally Posted by ATOBTTR
Thus the question becomes, if traffic levels resume to Australia, do we see DL start service to MEL and/or BNE to accompany its service to SYD?
Possibly, but I doubt it. Primarily because you need two aircraft for every 1 daily Australian route. That's a lot of aircraft to commit without any feeder traffic.

I think either:
- DL makes an agreement with REX to offer codeshares, REX recently expanded to SYD-MEL and SYD-BNE routes, which opens up most of eastern Australia (although unless you are headed to regional NSW, it's a double-connection elsewhere).
- DL maintains a relationship with VA, despite the UA alliance. This means DL codeshares on VA to certain Australian markets and NZ. It might sound strange, but VA did have codeshare agreements with UA when they first started the DL partnership and those continued for some time until VA/DL started their joint revenue- sharing partnership. VA wouldn't be giving DL the best deal, but they might offer their higher fare buckets to DL.

Maybe there's a mix of both where REX is the DL partner for Australia and VA is a partner for NZ flights.... depends how much UA wants to protect NZ (we know VA doesn't care!).

Last edited by CPMaverick; Dec 14, 2021 at 12:00 pm
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Old Dec 14, 2021, 4:01 pm
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I'd be shocked to see an ATL-AKL flight... its not much shorter than JNB which has proven difficult for DL's aircraft to handle the range with pax and cargo, and its not like there is a good diversion point if a tech stop is needed. We'll probably be stuck with DL only offering LAX-SYD and trying to push any more demand onto KE codeshare through ICN which is also a poor option.
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Old Dec 14, 2021, 6:12 pm
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Originally Posted by rylan
I'd be shocked to see an ATL-AKL flight... its not much shorter than JNB which has proven difficult for DL's aircraft to handle the range with pax and cargo, and its not like there is a good diversion point if a tech stop is needed. We'll probably be stuck with DL only offering LAX-SYD and trying to push any more demand onto KE codeshare through ICN which is also a poor option.
The problem with JNB is elevation (AKL being on the ocean should be somewhat better on that score) and heat (AKL is presumably somewhat cooler on that score), not distance as such.
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Old Dec 14, 2021, 6:30 pm
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DL was probably only going to fly LAX-SYD. From Australia, UA offers more TPAC options to both LAX, SFO, and potentially IAH. Thus if you are VA, and you have to partner with one US airline for TPAC… UA offers far more than DL to the Aussie flyer.
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Old Dec 14, 2021, 7:24 pm
  #90  
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Originally Posted by Duke787
The problem is this basically means with DL you can fly to Sydney and that’s it.

Nowhere else in Australia, no New Zealand. So if all your business is Sydney that’s great. Otherwise will need to book separate tickets if you want DL
Why are you assuming that DL will stop interlining with QF and VA?

BTW, PMNW and QF were once quite close. They offered a joint Circle Pacific fare (vaguely like RTW, but focused on the Pacific Ocean), IIRC with JAL too. There was even a little known provision to allow access to QF lounges in connection with QF domestic flights if one had a TPAC business class segment on the ticket. IIRC you could also do a PMNW RTW including QF segments as well as PMNW and KLM (plus probably a bunch of other carriers).
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