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Photos: Inside the ATR 72-600, coming soon(ish) to Virgin Australia

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This month Virgin Australia is due to take delivery of its first ATR turboprop aircraft, an ATR 72-500 after previously expecting the aircraft in May. It will be the first of four -500 variants and will be followed next year by four ATR 72-600, which received EASA certification in May.

Virgin ordered up to 18 ATR aircraft in February. "The ATR will form the foundation of our regional network plans, with the first six ATRs replacing our current Embraer E170 fleet and the additional aircraft flying to new regional destinations," chief executive John Borghetti said at the time. The E170 disposal was announced in August 2010.

Borghetti said the ATR72 burns one-third less fuel than the E170 and also burns 20-30% less than its competing aircraft, a statement likely in reference to the Bombardier Dash 8-400 aircraft that QantasLink operates on its regional routes, giving Virgin an advantage on economics and passenger comfort.

The -600 features as standard fit ATR's new Armonia Interior, which it developed with Italian design house Giugiaro Design. As we reported at the time of the partnership:
Armonia's cleanly-styled seats have been ergonomically designed to ensure greater knee clearance. Coupled with the Armonia ceiling; side panels; overhead bins, and LED lighting, the ATR Series 600 cabin will feel more spacious and airy, says ATR, noting that Armonia also uses lightweight materials, reducing its total weight by the equivalent of two passengers.
Although the Armonia interior is available on the -500 and can be retrofitted to it, Virgin's -500s will not feature the cabin design. But its -600s will, and here's an early of peek of what the cabin looks like in real life, as seen on Royal Air Maroc ATR 72-600 on show at last month's Paris Air Show.

Note the interior colours, configuration, and design elements are specific to RAM, the -600's launch customer, but you can get the gist of what Virgin will be pitting against Qantas Q400s on regional and low capacity routes on the east, and later, west coasts. Skywest will operate the Virgin-liveried aircraft.

The main passenger entrance is at the rear as the forward fuselage is used for the baggage hold and access door (more on that later).

ATR rear entrance.JPGThe entrance opens to main cabin, which features the "Classic" economy seat in a 2-2 configuration that offers 17" width at 29-31" of pitch. All seats (economy, premium economy, and first class) are manufactured by Italian manufacturer Geven and are lightweight and designed for a long life.

The seats have a natural recline with no additional recline, which reduces wiring and extra material (and thus weight). ATR says each Classic seat weighs only 9kg.
ATR Y cabin-1.JPGATR Y cabin-3.JPG
Note the seat pocket storage on top that...
ATR Y cabin-2.JPG
...increases legroom since there is no seat pocket on the bottom.
ATR Y cabin-4.JPGATR says the overhead bins have push-button sliding doors and more storage space compared to unspecified other interiors. The bins have been designed for easier maintenance; engineers remove four pins to disassemble the bin and access the sidewalls, according to the manufacturer. It expects 70% of passengers can store a roller bag in the bin.
ATR overhead bin.JPG The passenger service unit has replaced the no smoking indicator with a no electronic device indicator. Note the blue LED lighting. ATR says this improves the sense of space.
ATR Y cabin-5.JPG
Virgin has most recently said the aircraft will be in a single-class configuration, but the ATR 72 can accommodate a two-class configuration, which RAM has selected. This premium economy-style cabin features Armonia's "Prestige" seat, which gives more legroom and additional back and neck support. (ATR also offers a first class seat in a 1-2 configuration with typically 35" of pitch.)
ATR prem cabin-1.JPGThe first row is also the exit row and features extra legroom.
ATR prem cabin-2.JPGForward of the first row is an aisle that leads to a compartment with the cargo hold on the right, loading ramp on the left, and cockpit access ahead.
ATR aisle forward.JPG
Luggage compartment
ATR luggage hold-1.JPGATR luggage hold-2.JPG
At the front is the forward access hatch. ATR also offers a jetway-compatible door with passenger-friendly interior entrance.
ATR front cargo entrance.JPG
ATR 72 at stand-1.JPGThe rainbow-coloured props may be eye-catching, but Virgin's will be solid black. ATR 72 at stand-2.JPG
The ATR72-600 also has orders from RAM, Air Nostrum, Azul, Air Tahiti, and leasing firm Air Lease.

What Alan Joyce thinks of Virgin's corporate and A330 plans

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AlanJoyceszd.JPG
Over the next few weeks Virgin Blue is expected to make a number of announcements to help the carrier capture more of the corporate market and strengthen its network. Since new strengths will come at the expense of Qantas, it is worth considering what Qantas thinks of Virgin's plans and how Qantas plans to fend off Virgin.

Qantas chief executive Alan Joyce offered his first insights into the topics last July. Here's what's changed since Joyce's first remarks and what further changes we can expect from Virgin.

Network
Quote Joyce:
I believe it's very hard to replicate our network. It's going to require a huge investment in new aircraft in order to replicate that network.
virgin-blue-embraer-190.jpg.500x400.jpgVirgin's mainline domestic network rivals Qantas's. For regional flying, Virgin is making inroads with this month's announcement of a partnership with Skywest (although some frequent flyers have questioned the comfort of the planned yet unspecified turboprops compared to Embrarer E-jets, left).

Internationally, Virgin made significant network inroads into Europe with its partnership with Etihad Airways. The Delta partnership, be it a joint-venture or codesharing with Delta, will improve V Australia's North American traffic. What remains is Virgin's Asian strategy, which Virgin Blue chief executive John Borghetti has only said will entail more partnerships and Virgin flying some routes itself.

These intercontinental partnerships give Virgin Blue a virtual network. As Borghetti explained last August: "With a small number of airplanes [operating] into two key hubs, in Los Angeles and Abu Dhabi, we actually open up hundreds of destinations around the world, hundreds to the point we would never be able to fly to on our own without buying squadrons of aircraft."

Frequent flyer: core of corporate market
Joyce:
It's very hard for our competition to replicate our frequent flyer program. With 7.2 million members it's got the largest penetration of any domestic market of any airline I think in the world. That gives us a hugely solid foundation and makes it hard for them to penetrate the corporate market as a consequence.
A new world of choice.jpgThe most crucial part, along with codesharing, of Virgin's partnership with Etihad is reciprocal frequent flyer benefits. Corporate travelers want to earn frequent flyer points they can use for personal trips and the Etihad partnership has helped expand Virgin's limited Velocity programme. Velocity's expansion will continue as Virgin partners with more carriers.

Qantas has not done itself any favour by taking away platinum elite anytime lounge access and priority check-in for silver members. In comparison, Virgin Blue Silver Status members, the lowest elite levels, can avail themselves of priority check-in. The highest Velocity elites, gold members, do not receive anytime lounge access. Given the number of disgruntled Qantas Frequent Flyer members, Virgin Blue might want to consider what the cost is of granting anytime lounge access and adding that perk into its plan to woo corporate travelers.

Product
Joyce:
The product that we're offering is miles ahead of the competition today and we're not stopping there. We're investing hundreds of millions of dollars in new product on the ground and in the air and that I believe will put it out of reach of where the competition can get without a significant investment in product and that's going to be a big difficult thing for them without the core traffic.
Virgin's product is the outstanding item that has yet to change and its domestic A330 configuration has not been released. Virgin acknowledges short-haul premium economy has not worked and will be changed. Lounges are also getting upgraded. Internationally Virgin needs to align its product with its partners, particularly Air New Zealand since the two will be codesharing across the Tasman and a product imbalance could make customers avoid one carrier.

EBOJcabin.jpgThe more pressing product concern may be with Qantas and not Virgin. Frequent flyers scowled in November at the image of the new domestic business class on A330 VH-EBO (right).

The seats were more akin to economy seats or Jetstar's Star Class, ostensibly to make aircraft interchange between Qantas and Jetstar easy. Some frequent flyers said they would not pay for business class between Melbourne/Sydney and Perth if that was the product they would receive.

If there is one domestic interior Qantas should not dishevel, it is this one. Virgin Blue has said it will take three A330-200 aircraft to use on the Melbourne/Sydney-Perth runs. The interior is undisclosed, but if VH-EBO is the competition, Virgin has it easy. For everything else, Virgin will have to prove itself.

To each his own?
Joyce:
For Qantas it's up to us to play our game and we play our best game. It doesn't matter what the competition will do in terms of those issues because Qantas is so strong.
For all of Joyce's public nonchalance, once the doors close, expect a fight.


Photo Credit: Virgin Blue from AirSpace photographer Rear Loader

Slideshow: Virgin Blue Converts 737 to Rock Concert Arena

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Last October Virgin Blue converted B737 VH-VUA to host an in-flight Black Eyed Peas concert. Here's a slideshow chronicling the very unique modifications. (I'm trying out some new software, so please leave feedback about how it works.)

Qantas 747/380 Re-vamp Emphasies Y+, Affirms Air NZ and V Aus

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QF 747 First Class Mess.jpgFirst class is being thrown out on Qantas 747s (above)

My colleague Siva Govindasamy attended this morning's Qantas press conference. The Qantas Group announced traffic was marginally up, its half-year earnings were down 72% compared to last year, and the big ticket item: from the end of 2011 to 2012 Qantas will undergo a A$400m fleet revamp.

Key note: the announcement on the fleet revamp wasn't an announcement. It was a confirmation. The Australian Financial Review first ran the story last November, from which point Qantas declined to comment. And no wonder. Under the fleet revamp, first class will be removed from 9 of the 15 747-400s that have first class. All together Qantas has 28 747s, according to Flightglobal's ACAS database.

The A380 isn't fairing better. The 6 A380s Qantas has, and six on their way, will retain first class but see a decrease in business and corresponding increase in premium economy. The remaining 8 on order (ACAS shows Qantas also has 2 on option) will have business, premium economy, and economy--no first class.

The question that immediately comes to mind is what this decrease in first class says about the prospect for premium travel, as Siva wrote about. Earlier this week IATA said business travelers who have been relegated to economy may not ever return to business class. You can also read that as first class passengers relegated to business won't return to first. And, of course, British Airways expects to end business class on short-haul routes. If it's going to end on short haul, surely long-haul won't go away unscathed.

A second question that comes to my mind is what this decision says about premium economy. Answer? Sold. The 747s will see an increase in Y+ of four seats (if I've got Qantas's figures right) while A380s will see an unspecified increase in premium economy.

Y Plus V Aus.jpgV Australia and Air New Zealand are no stranger to the potential of Y+ (and Air NZ is stepping up its Y+ to quasi-business class). At the V Australia launch last February, Godfrey remarked to me he expected premium economy (right) would be the carrier's best-selling product. He re-affirmed that this past December at the launch of Melbourne to LA flights on V Australia, tell me:

We have a boutique business class...and forty premium economy [seats], which have done very well for us. We've exposed less of our footprint, about a third, to premium whereas Qantas was closer to a half. They were clearly configured for the best of times, not what we're seeing right now.
An aside: Godfrey noted it was unlikely V Australia would change its configuration any time in the next five years.

To crunch some numbers, premium economy accounts for 11% of all seats on V Australia and 15% on Air New Zealand (777-200), but 9-11% on Qantas 747s and 7% on Qantas (A380). Between Qantas' 747s and 380s, the 380s are poised to receive the biggest increase in Y+, affirming the trend Air NZ and V Australia started with large Y+ cabins will stay in this region.

How long before more carriers ditch high-end premium cabins for mid-tier Y+ cabins?