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Virgin Blue (DJ) is working towards a deal that would see it add another codeshare and Velocity frequent flyer partner by the end of March, with others likely to follow later in the year.The move, designed to further offset the advantage that Qantas enjoys through its international network and membership of the Oneworld Alliance, is part of Virgin's plan to reinvent itself as a "new world carrier" and attract more business travellers.
It is understood the airline is in talks with at least three airlines from the massive Star Alliance, whose members include Singapore Airlines and Air New Zealand, as well as three independent carriers.
The airline launched its Velocity frequent flyer program in November with Dubai-based Emirates and Virgin Atlantic as partners.
Virgin Blue chief executive Brett Godfrey confirmed on Friday that the airline was in talks with several airlines, including Star carriers.
However, he said the airline was not exploring the possibility of joining the alliance. "I think it's fair to say Oneworld carriers aren't going to be too interested, but Star carriers would rather put their people -- in terms of domestic distribution -- on anyone other than a Oneworld carrier," he said.
"So we're naturally interesting for them. The issue has always been the inadequacy of our system to talk to their systems, and we've started to overcome that."
Virgin is moving to distance itself from its low-cost carrier (LCC) beginnings and reinvent itself as a new type of carrier capable of offering the benefits of full-service airlines but with an LCC's lower cost base.
It is keen to attract more of the well-heeled travellers that allow Qantas to claim a 30-40 per cent yield advantage over its smaller competitor and give it more resilience during economic downturns.
Virgin is also believed to be looking at a premium economy-type service that would give business travellers increased leg-room on longer flights, and is set to introduce live cable television on all services.
The Australian--------------------------------------------------------
Sure sounds like Virgin Blue is configuring their cabins to resemble those of United's P.S. or ExPlus service classes. Making it more easy and likely that VB will apply to be a member of the Star Alliance.
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