
Qantas Airways will be facing more competition on their most profitable international route. Qantas, which receives nearly 20 percent of their international revenue from their Sydney-Los Angeles route, will be facing a new competitor even maybe two new competitors.
Virgin Blue has placed an order with Boeing for seven 777ER planes valued at $2.6 billion (AU). Virgin Blue chief executive Brett Godfrey said the seven-aircraft deal was the biggest undertaking the airline had taken and "a huge risk".
Virgin Blue has been refining their services in Australia. They no longer fit the low cost carrier model. Virgin Blue has been molding themselves into a more business airline all while keeping costs relatively under control and keeping the airline young and fresh.
Mr Godfrey said Virgin needed to have at least daily services to the US, but was pushing for 10 flights a week.
He said Virgin was concentrating on the US market, and not yet looking at extending the new airline's reach to London or the Middle East. Mr Vaile said a second carrier on the Pacific needed to be profitable, not just sustainable, and if Virgin did well the Government would look at whether it could have other routes to other parts of the world.
But another US airline is eyeing the key Sydney-Los Angeles route. Delta Air Lines said they would be interesting in the route. Something that could be interesting giving the fact that Qantas will be using their new A380's, Virgin Blue will be using their new 777's, United Airlines using their 747's, and even Delta looking at using 777's on the route.






While Delta has stated they have an interest in Sydney, I don't recall them saying that Sydney-Los Angeles was the particular route of interest. If you have a link or source that states otherwise, I'd very much love to see that.
While I believe a SYD-LAX would be more a stellar performer, it's widely rumored that a banked SYD-HNL could be a possibility due to the lower opportunity cost of the 763ER or 764ER.
Posted by: Anonymous | March 23, 2007 7:44 PM | Permalink to Comment