Virgin Blue plans major revamp
Originally published on www.businesstraveller.asia 21/06/2010 - Filed under: News »
Virgin Blue plans to challenge Qantas more formidably for the business travel market, Australian media is reporting.
The enhancements, pushed by new chief executive John Borghetti and placed before the carrier’s board this week, are major and include launching Business class, changing its name and uniforms and putting larger planes on its routes. If approved, the changes are intended to increase yields significantly and create a more attractive product to corporates.
In 2007, the domestic carrier launched Premium Economy seating – designating the first three rows on its Boeing and EMBRAER aircraft – hoping to compete with Qantas’ Business class cabin. It was not successful because as Peter Harbison, founder and chairman of the Centre of Asia-Pacific Aviation, told The Age of Melbourne: “Virgin Blue's premium economy had not worked because there was no clear distinction with the rest of the cabin." The exercise, he said, left "Virgin Blue at the bloody low-end of the market."
As for the new name, it is said to be Virgin Australia, which will bring Virgin Blue, V Australia and Pacific Blue under one brand. Borghetti is also reported to be in the market for larger aircraft.
For more, visit www.virginblue.com.au
Margie T Logarta
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LeoSeaton - 21/06/2010 12:16
No surprises there, given Borghetti's background at QF, and strong reputation for yield management and segmentation. It's also critical, if Virgin Blue are to maximise their slice of the newly-opened up Federal travel spend in Australia.
The SH planes are already on order, so it's just a question of agreeing the right interiors. LH - it's a buyer's market for aircraft, and I'm sure he's canny enough to secure a good deal.
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