VBA virgin blue holdings limited

Sorry - forgot the article:Cheaper flights on the cards as...

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    Sorry - forgot the article:

    Cheaper flights on the cards as Virgin eyes Perth hub

    7th February 2009, 10:00 WST

    Perth is on the map for V Australia, Virgin Blue’s long-haul international division, which took delivery yesterday of its first aircraft — a 365-seat 777-300ER — to launch its service from Sydney to Los Angeles this month.

    Speaking exclusively to The West Australian, Virgin Blue CEO Brett Godfrey said V Australia’s planned service from Sydney to Johannesburg later this year could operate through Perth, causing fares to tumble on the route to South Africa.

    South African Airways has a monopoly on the route at present.

    The launch of V Australia’s Australia-US route from February 27 has already caused a 30 per cent decline in fares, according to Virgin Group president Sir Richard Branson.

    Mr Godfrey said V Australia would launch flights from Sydney to Los Angeles and then Brisbane to Los Angeles in April before turning its attention to Johannesburg.

    “We are looking at operating through Perth from Sydney to Johannesburg to tap into the resource industry traffic,” Mr Godfrey said.

    The airline’s advantage would be its ability to offer the most luxurious transcontinental service for Australian domestic passengers.

    V Australia’s 777 is configured with 35 business-class beds, 40 premium economy-class seats and 288 economy-class seats.

    Perth is also on the map for Virgin Atlantic, which has expressed a desire to operate non-stop services from London to Perth when it receives its ultra-long-range 270-seat Boeing 787-9 from 2014.

    The flights through and to Perth by V Australia, Virgin Blue and Virgin Atlantic raise the possibility that Perth could become a major hub for the Virgin Group.

    “We will be linking all our airlines and offering round-the-world fares,” Sir Richard said.

    V Australia is now selling Perth travellers some of the lowest standard fares — $1800 return — ever to the US and has linked up with several US airlines for connections to a host of cities.

    Sir Richard said he expected fares to remain at low levels “for most of the year”, with a number of promotions planned to stimulate travel in quieter times.

    “Our entry (on the Pacific route) will spark a price war,” he said.

    GEOFFREY THOMAS SEATTLE



 
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