trumpton
in Convoy en route to Toulouse
Posts: 93
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Post by trumpton on Apr 25, 2014 12:03:50 GMT 1
I think reiterating that Virgin is "sitting on the fence" is rather good news - it means that no decision has been made, a purchase still being on the table, while many believe the order is bound to be cancelled. I also noticed that Branson calls the company's A380 rights "options" when they are listed by Airbus as "firm orders". This reminds me or Airbus once saying that Virgin had "cancellation rights". All this probably means the same with different words : Virgin is free to purchase or not, probably without any financial penalty in the latter case. Sitting on the fence equates to indecision and that isn't necessarily a good thing. It can very quickly lead to falling behind your competitors. I think the real truth is Virgin can't afford to buy them at the moment. As I mentioned getting rid of 340's is far more important than replacing their 747's with 380's in the next few years.
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philidor
in service - 6 years
Posts: 8,950
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Post by philidor on Apr 25, 2014 12:42:46 GMT 1
You are right to point out that Virgin's strategical positioning is not crystal clear. It may be a reason for postponing some decisions.
As regards A340s, "getting rid" of this asset would only be part of the picture, since selling them off would not only result in a one-off lost, it would also force Virgin to procure other expensive equipment.
The decision is therefore a trade-off between leaving the present situation unchanged (low depreciation costs, high operating costs) and investing to reduce direct operating costs while permanently increasing depreciation or lease costs. In present market conditions, some airlines (LH, among others) keep operating their A340s while others make the opposite decision.
So, I don't think Virgin cannot fund new widebodies, it's just that they probably think the investment might not improve their financial results. There is no miracle way out of Virgin's trouble.
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trumpton
in Convoy en route to Toulouse
Posts: 93
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Post by trumpton on Apr 25, 2014 15:04:27 GMT 1
I just don't get Virgin's strategy any more. Gone is the funky and adventurous attitude that appealed so much to the British public a decade ago. The whole A380 concept is the perfect match for Virgin to reinvigorate its long lost unique offering. If I worked in Virgin's product development team I'd be wetting pants with excitement at all the bespoke things that could be done with the cabin to reinvent the brand. You do have to buy the things first though. What makes things worse is that Virgin easily has the volume of traffic to support the lady on several of its routes.
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Baroque
in service - 2 years
Posts: 3,991
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Post by Baroque on Apr 25, 2014 16:13:10 GMT 1
I used to do a fair bit of Transatlantic flights on VS some years ago. It was quite a pleasant airline to fly on, and I actually go out of my way to book with them. This was when their A340-600s were brand new and featured the "4 engines 4 long haul" writing on the engines. It certainly added to the experience, the comfort and quiet. I'm not sure the 9 abreast 787s will bring the same kind of appeal the A340s did to me.
I really hope VS sticks to the A380 order and provides its customers a unique experience that will make them want to fly with them for reasons other than just the price.
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deeps2076
in Convoy en route to Toulouse
Posts: 61
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Post by deeps2076 on Apr 26, 2014 15:33:33 GMT 1
I think this order will be cancelled. The fat lady is clearing her throat.
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trumpton
in Convoy en route to Toulouse
Posts: 93
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Post by trumpton on Apr 29, 2014 20:53:50 GMT 1
I think this order will be cancelled. The fat lady is clearing her throat. Alas, I think you might be right about them cancelling.
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Post by kevo350 on Apr 30, 2014 21:16:26 GMT 1
Maybe they will use the A350 & 787 more, possibly ordering more depending on efficiency etc Maybe A330 could play a bigger part in their future strategic plans.
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philidor
in service - 6 years
Posts: 8,950
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Post by philidor on Apr 30, 2014 22:56:49 GMT 1
I am not ready to forget Virgin as an A380 operator ! I would see them take Amedeo A380s on lease !
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Post by kevo350 on May 1, 2014 21:43:44 GMT 1
I am not ready to forget Virgin as an A380 operator ! I would see them take Amedeo A380s on lease ! To be honest I dont even see that happening. Would say single deck wide bodies and more of them to increase fleet size.
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s543
in service - 2 years
Posts: 3,957
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Post by s543 on May 1, 2014 22:30:54 GMT 1
We might see DELTA taking secondhand A380 from Emirates but that is it.
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