VS/BA/BD: Branson to IAG - Stop Slicing of bits of BMI

Well it's taken long enough for the Bearded One to get involved, but Richard Branson is calling on regulators to examine the purchase of slots at London’s Heathrow by IAG from Lufthansa.. and it's British Midland International subsidiary according to Bloomberg

Virgin Say:

“Branson is concerned that BA could be attempting to salami slice BMI’s key assets, increasing their dominance whilst leaving just an uncompetitive and unattractive rump for sale,”

Apparently, it's been revelation that the slots that were sold last week were initially sold for lease - not permanent sale

It's an open secret that Virgin Atlantic has been eyeing BMI for quite some time - either to use it for slots, or to create a European/Domestic feed with the Virgin name.

But there is a bigger issue. If Virgin have been looking at this since 1999, why the hell are they waiting? Because Lufthansa won't sell BMI off without trying to recover some of the losses. In addtion, Virgin has it's own issues to attend to since the three major alliances have teamed up - leaving Virgin on it's own over the pond.

Certainly, it's getting to the point where Virgin must either put up the cash... or back off...

VS: Strike threat lifted.

Good news for those of you travelling on Virgin Atlantic, with BALPA lifting the threat of strike action for now.

It seems a new offer has been received from the management at Virgin Atlantic, and BALPA will need time to present it to its members.

However, some commercial confidentiality is in place with no details of the offer being made public.

Will this quell the threat? I don't honestly know...

VS: Branson to Pilots - "Extremely Sad" over threat of strikes

dIn a bid to head off the strike action which BALPA and the Virgin Atlantic pilots are threatening, Sir Richard Branson has sent a letter to the pilots, stating he was "extremely sad" about the threat of strikes, and that he would be happy to meet them for private talks.

There also was a tag-on of the line "it will leave an indelible scar on the company, impact customers' trust in us and damage the unique and friendly culture at Virgin Atlantic".

Ooh. Disrupting the cool image of Virgin. Such is life.

BALPA is fighting for a higher rise than the 4% national average offered by Virgin, pilots have not had a rise for some time.

BALPA has yet to formally respond.

If Virgin Pilots do intend to strike, action will be announced this week. Hang tight - this could be interesting.

VS: Virgin Atlantic vs BALPA. Vote - It's Strike Actions - Dates Not Set

Well now the British Airways industrial dispute is out of the way, it's time for the Virgin Atlantic pilots to go on strike.

The dispute is over pay (oh surprise) and the lack of rises since 2008, but it seems to be a high turnout of 94% with 97% of voters going for strike action.

BALPA has yet to announce strike dates at this time, but are using the turnout as a battering ram against Virgin Atlantic.

Virgin Atlantic is preparing contingency plans in case a strike date is called, wit the offer of more talks.

However, there is at the end of the day one lot of people who will suffer over this - and alas, it'll be the person who buys the ticket and realises on that day, they're going to be delayed, rerouted or have to rebook for another time.

GhettoIFE.com will keep abreast of the situation and if dates are announced, they will be posted.

And as usual, begin your contingency travel planning... now.

VS: Virgin vs BALPA. Or "Someone else's turn to strike?"

Industrial relations. You've got to love them (such as I do at the moment).

It seems Virgin Atlantic's pilots are in a bad mood over their pay and conditions, and have been called to ballot for strike action.

The ballot will commence on 24th May 2011, with the result announced four weeks later, and organised by BALPA - who represent 85% of Virgin Atlantic's pilots.

Should a strike is supported by the membership, like any other organisation, a week's notice is required.

BALPA complains that Virgin Atlantic pilots have not had a pay raise since 2008, with a 4% rise this year and 3% rises for the two years after.

Here's a hint BALPA. It's better than some of us are getting elsewhere.

Virgin Atlantic states it is open to dialogue, and at this time "Virgin Atlantic would like to reassure passengers that all of its flight schedule continues to operate as normal."

Whilst not as crippling as the British Airways Cabin Crew strike, this could turn messy fast. Keep an eye on this one....

Royal Wedding - Meanwile at VS....

All I can say is how tacky... and how Virgin Atlantic as there will be street parties in the sky in Virgin Economy and Premium Economy cabins tomorrow (29th April).

http://blog.vtravelled.com/virgin-atlantic-celebrate-the-royal-wedding-with-onboard-street-parties/

Almost makes you want to book a ticket on another carrier....

Airplane p0rn - Virgin Atlantic 747-400 and A340

Airplane p0rn week continues apace at Ghettoife.com, and today, it's time for the Red Tails of Virgin Atlantic to take over the post. This is a pair of the Virgin Atlantic fleet with the Heathrow tower over them

More of course tomorrow!

BA/AA: Joint Venture Confirmed - Virgin on it's tod.

News today has been released that say that the Joint Venture between British Airways and American Airlines has been given full approval, and has been signed off at a value of  £.4.4 Billion a year.

The terms of the Joint Venture allow the airlines to share costs and revenue on passengers from the European Union Area, Norway and Switzerland to the United States of America, Canada and Mexico.

The net looser in all of this is Virgin Atlantic, who are now one of the few airlines who operate to the USA from the EU and isn't a member of a major alliance (and who think this will create a monster of an airline to combat)

British Airways indicates this news will bring about lower fares - unfortunately, my fare tracking indicates prices on fares are heading one way thanks to the new levels of Air Passenger Duty in November - I'll give you a hint - it's not downwards.

For Virgin, the need to align itself with an alliance will grow deeper today as its costs will be higher than it's competitors over the pond now....

VS: Increasing Ghana, but lacking slots....

Virgin Atlantic have confirmed the success of it's London Heathrow to Accra, Ghana route with the addition an extra rotation, taking it to 4 services week for the peak Christmas Period (11/12/10 to 09/01/11).

However, it seems a lack of slots is preventing the growth of the route further as Virgin wishes to increase the frequency permanently - but with capacity stretched at Heathrow, this may take some time.

According to Virgin, loads have been high (in terms of passengers), citing it to be a popular destination - although it has not been disclosed if the yield (amount earned per passenger) is of value.

Although anything like this will just lead to Virgin bleating it hasn't got enough slots and needs more capcity at Heathrow - to which Virgin has to remember the answer to that is simple: Gatwick.....

Safety Video Saturday - Virgin Atlantic

This week's Safety Video Saturday is an oldie but a goodie - it's Virgin Atlantic's video with Vic Reeves and Danni Behr doing the voice over.




Some more random videos next week!

VS: Trouble on the horizon

Apologies for the delay into today's post - I've been busy reviewing my photographic portfolio and it is quite frankly swallowing every minute when I should be beginning to pack....

It seems all is not well in Virgin Atlantic land. BALPA ( British Airline Pilots' Association) dropped a minor little shell on VS , requesting a meeting with managemnt on Tuesday for talks to avoid confrontation between the airline and its pilots.

BALPA describe this as "last ditch attempt"

The dispute is over entitlement of rostered fays off, and an alleged denying of the company to grand these days off - 120 days a year (which is akin to an normal deskjockey working Monday to Friday only)

BALPA is unimpressed, and calls on Virgin to work on a solution - before BALPA takes action.

Which won't be pleasant if you're a passenger stuck at LHR T3 and finding your plane is cancelled....

Hopefully both sides can work out an agreement - the last thing we all need is more strikes....

BA/VS: Both post losses.

Earnings season is in full swing at the moment, with British Airways and Virgin Atlantic releasing their numbers today.

And for both, neither is good reading.

BA reported a pre-tax loss of £164m, larger than the £148m loss it made in the same period last year, whilst Virgin Atlantic announced a pre-tax operating loss of £132m in the 12 months to February.

BA of course has been through strike actions and Volcano's, whilst Virgin Atlantic has just suffered volcano fun.

Again, both airlines are recovering from the downturn, but there will be challenges ahead for both if a double dip recession comes about...

More at http://www.bbc.co.uk/news/business-10813680

AA/BA/IB - The TATL Joint Venture is Go!

Some minor good news for the three operators - American Airways, British Airways and Ibera have recivied clearance from US anti-trust authorities regarding their proposed Transatlantic (TATL) Joint venture,

This will allow carriers in the Oneworld Alliance to coordinate scheduling, pricing, and other services (as is done by the other two alliances - Star Alliance on the same agreement, SkyTeam with the old KLM/Northwest Agreement).

Finnair and Royal Jordanian Airlines are also covered in this agreement.

As part of the offer, the 4 pairs of slots will be released (for lease) at Heathrow to competitors if they wish to launch services to certain cities

Meanwhile in Heathrow T3, a certain bearded airline is fuming, and now let in the feeling the pinch of all three major alliances pooling their resources together. Whilst there may be argument over fares being anti-competitive, there are still three major groupings. All they have to do is fight.

And make Virgin suffer.

BA/IB/AA JV Tie up - Cleared.

Final approval has been given for British Airways, American Airlines and Iberia has been given for the upcoming Transatlantic Joint Venture from the European Union, and will allow them to work together more closely.

This gives them immunity from anti-trust laws that prevent price and schedule coordination.
For this plan to work, there has been one major concession - the removal of 4 slot pairs from the JV to allow competition on routes between New York, Boston, Dallas and Miami from London Heathrow.


For BA, AA and IB, this is good news, leaving only the US Authorities to please.

However, a certain other airline has now been manoeuvred into a corner.

Virgin Atlantic has opposed the deal from the outset, saying consumers will loss out, where in fact it will be fighting for the scraps on the table, as Virgin Atlantic will now squeezed by all three alliances who have anti-trust immunity and can compete with Virgin harder.

Who knows, this could be the final straw for Virgin Atlantic to stop playing by itself to actually go an join an alliance....

VS: Beardy is at it again with another publicity stunt.

Yes, the Bearded one is out and about again. Now I swear there was something important in it - (the resumption of a Manchester - Las Vegas route in April 2011 and 10 Years of Virgin serving London - Las Vegas)

But who cares?

Dita Von Teese was out and about, so it's time to name another 747-400.

Image - Virgin Group

And of course - the lovely Ms Von Teese herself was out on promotional duty.

Image - Vtravelled.

There's also water shenanigans at the Bellagio too.

Well if there's one thing that Beardy does good - it's shameless publicity.

More images:

• Vtravelled - http://blog.vtravelled.com/the-party-starts-arriving-in-las-vegas/
• Las Vegas Sun - http://www.lasvegassun.com/news/2010/jun/16/new-virgin-atlantic-route-could-bring-internationa/

Branson admits VS Can't make it on its own, and eyes up... Guess who.

Well someone has finally admitted what the rest of us known for quite some time - that Virgin will have trouble competing if the BA/AA tie up goes ahead, and they'll have to seek a partner.

FlightGlobal and ATI have published an interview with the Bearded one during the inaugural flight from Heathrow to Accra, Ghana.

And here's the the choice quote

"Ultimately we may have to [consolidate]," said Branson during Virgin Atlantic's inaugural flight between London Heathrow and the Ghanaian capital Accra

"If the playing field is so tipped against us that it is almost impossible to be an independent airline, we may come to a position where we have to consolidate. But this is not something we want."

Of course, Virgin is trying to keep its cards to its chest - it's pretty darn obvious who Virgin want to tie up with - and that's Lufthansa "English Patient" - BMI. 

Again to quote the Bearded One 

"There is a lot of logic in the two of us tying up," says Branson. "I don't think BMI has a future as a standalone airline so I think, at some stage, something will happen there. I think the two of us will be stronger together, rather than separate."

So looking at BMI, there's one thing that Virgin is eyeing up, and that's the slot BMI pool has, that Lufthansa Group isn't leaveraging well and instead is just putting on filler short haul services.

As Virgin is having to close routes to open new routes (whilst the older route might be loosing money, but that's by-the-by), it's using up its entire slot allocation at Heathrow, forcing expansion through Gatwick with leisure routes - a notoriously fickle market.

One of Virgin's motivators for courting BMI is the airline's slot pool at London Heathrow. This need has recently been intensified, as the new UK Government has blocked a third Heathrow runway.

Virgin is using all its Heathrow slots and cannot obtain fresh ones - so to begin a new route, Virgin has to close another. Its new Accra route came at the expense of its Mauritius service. In addition, Virgin is leasing slots with United - and it is rumoured United will want them back sooner rather than later, and thus not extend the lease.

Well, some sense may be coming to Virginland. However, the lack of a Global Alliance partner could really hurt Virgin going forward.  Buying BMI is a shortcut to Star Alliance membership....

The fallout of a widely publicied promotion... (BMI Diamond Club, Virgin Flying Club)

"He's not the Messiah- He's a very naughty boy!" - Mandy (Life of Brian)

... and for those of you who used JCWIZO code to join up with BMI who aren't members (to get Star Silver and a pittance), that's how BMI will be treating you.

A target group of 400 people that BMI were expecting has been hammered by a range of IP addresses that were out of band. Even now the database monkeys are working through the list.

Or in IT land, we call it "De-duplication". You can work out what that means.

Meanwhile in BransonWorld, it seems that Virgin Atlantic has been hit with pretty much the same thing with an offer for Virgin Atlantic Flying Club GOLD. Again, this was targeted at another group... but the code got out it seems. Virgin however was much quicker to pull this. If they reduce all the new Golds to Red's of course, is another matter.

What can we learn from this?

Targeted offers are just that - Targeted. Whilst some might say "nothing ventured, nothing gained", companies will take action to defend their interest if a deal get out... so if you're riding on something going through... make sure you're in the right group....

OneWorld Antitrust Approval for BA, AA, Finair and Iberia... at a price.

The Department of Transport has made a move that will no doubt infuriate Richard Branson. The immunity from antitrust laws, for the OneWorld carriers for American, British Airways, Finair and Iberia has been granted putting it on equal footing of SkyTeam and Star Alliance

Quoting the DoT:

The Department said the proposed alliance would enhance competition in the airline industry "by creating competition with the existing Star Alliance and the SkyTeam alliance, which already have been granted immunity."

As part of the approval however, 4 pairs of slots at Heathrow must be surrendered to other carriers  as part of the process, as well as capacity growth plans and traffic figures for review.

Obviously the Bearded One is very unhappy, who sees this as an afront to his little airline, quoting that prices will rise, and that competition rules are going to the wall.

To quote Sir Richard:

"Millions of transatlantic travellers will be adversely affected if the alliance receives final approval.

"In my personal opinion, this draft decision is a real kick in the teeth for consumers and they will be paying the price for it for years to come."

Which reminds me Richard, since you codeshare with Star Alliance airlines mainly, isn't it time to bite the bullet and join Star Alliance? There's even 4 pairs of long haul slots up for grabs if there's final approval.....

Airplane p0rn Special - Virgin Atlantic 747-400 taking off

Well it's Sunday - and a Christmas Sunday to boot, so as a present to all, it's a trip special of a Virgin Atlantic 747-400 taking off from Las Vegas on the long trek back to London Gatwick

 

  

 

More Airplane p0rn.... next year ;)

(it's only a few days away!! ;) )

The Friday News Roundup

It's Friday, so it's time to have a quick wibble around the web to find out who's doing what.

JAL - Seems like *everyone* is interested in them

JAL has a few suitors after it now - Delta and American as reported before and now Air France has tipped it's hat into the ring.

BBC News, Flight, CrankyFlyer

American Airlines - One Beeillon Dollars!

With no apology to Doctor Evil, American Airlines has got a nice $1 Billion dollar miles for cash swap with CitiBank to offer as incentives for bank accounts. In a separate development, they've agreed a sell and lease back on some of their new orders totalling $1.6 Billon. With Extra money, thats nearly $3Bn raised

$3 Billion Dollars eh. That's a lot of cash. Almost enough to buy a share in a partner airline....

BBC News

American Airlines goes where Delta and BA goes before - opens MAN-JFK route

Some good news for Manchester Airport and it's TATL services (which are dropping like flies) - As Delta has pulled the MAN-JFK route, AA will be moving into the route to cover it.

With the loss of the BMI and BA routes this year, it's a good news blip at least.

TravelMole

 Jet Airways - Back to normal

In news for fliers on Jet Airways (India), the management has agreed to meet the pilots demands with the re-instatement of 4 pilots. All leagle action has been dropped.

All's well that ends well.

Flight

American do triangles - Starts BRU > LHR > BOS service.

In a move to protect slots and increase utilisation, AA is copying United and starting a Brussels > London > Boston service.

Anything to protect a slot at LHR these days...

Flight

THY (Turkish) gets finance for an Easy A321

Turkish airlines are increasing their fleet with a purchase of a 2008 Airbus A321. Finance has been secured for it for 10 years. Hopefully they got a bargain price for it!

Flight

Singapore Airlines WhaleJet increases to 10 - now larger than 747-400 fleet

Singapore Airlines who believe that the only good body is a wide one have taken delivery of their 10th A380 series aircraft, which now puts it in the position of having more A380s that 747's.

747 fans will cry - SQ will be removing them from fleet by the end of 2011 fiscal year.

Now SQ, play nice with the rest of Star Alliance and release some redemption seats please in Suites, First and Business Class!

Flight, Flyertalk

Virgin Nigeria looses its Virginity - becomes Nigeria Eagle Airways

As the Virgin Atlantic group gets more annoyed, Virgin Nigera gets a new tailfin and becomes Nigeria Eagle Airways. It will continue to operate ERJ-170 series and Boeing 737's - whilst long haul services are still suspended (with possibly very little chance of coming back at the moment)

Virgin Atlantic is still seeking to shed it's 49% of Nigeria Eagle Airways. That could be used for a good purpose - like buying a UK rival...

Virgin Blue shopping for new B737's

Virgin blue is on the shop for replacement Boeing 737 series aircraft to replace it's older aircraft. The requisition is for 30-50 aircraft.  Whilst not that old - their aircraft range from 2001 to 2007, new aircraft always look nice and if there's a bargin to be had.. they'll take it.

Happy shopping blueys...

Next Gen A320... 2024 anyone?

Sadly, Next Generation aircraft will be taking their time to arrive and develop to try and bring new benefits. This is sadly the case of the replacement for the A320 class according to Airbus. They may have new engines - but no new concept for some time.

And that's it for the news this week. More of course from the wacky world of aviation news next week!