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Virgin Blue sells E170's

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Harry W

Joined:
28 Mar 2008
Number of messages:
23
  Topic: Virgin Blue sells E170's - Sent 01 Sep 7:35

Hi,
I am new.

Virgin Blue is selling their E170's. The are used on regional routes in Australia competing with Qantaslink's Q400 propeller flights.

Harry W

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FLX

Joined:
26 Apr 2007
Number of messages:
2377
  Topic: Virgin Blue sells E170's - Sent 01 Sep 14:48

Not surprising really if U hv been hearing what its relatively new CEO<ex-QF guy> has been basically saying since late 09:

VBlue will go up-mkt inching closer to QF mainline's key domestic mkt segment=Higher yield biz travellers/corp accounts.

In a way, it has already started that journey a bit earlier with its longhaul arm VAustralia. Its recent order of 2 332s for domestic ops reinforces this new strategy...U just won't order widebody for domestic ops if U're not planning REAL premium cabin. Conversely, U can't really hv a premium cabin without losing lots of Y seats on a E170....what's more, I suspect VBlue will @ least partially moving out of the regional mkt segment which is mostly low-yield in Australia.


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Mabel

Joined:
30 Jun 2008
Number of messages:
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  Topic: Virgin Blue sells E170's - Sent 01 Sep 17:31

An E170 has high fuel costs for a regional jet, higher than a CRJ200 or CRJ700 and much higher than a Q400 prop. Virgin Blue would be much better off focusing on mainline flights with premium seats as FLX suggests.


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