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Aug22
Virgin Blue Doubles Annual Profit; Set to Invade NZ with LCC

Virgin Blue, Australia’s low cost carrier, reported a doubling of annual profits to $216 million (AU).  The rise in profit was due in part to the airline carrying more people at higher ticket prices. 

In a similar move, the airline’s wholly owned unit Pacific Blue will begin their assault on New Zealand as their competitor, Jetstar Australia, owned by Qantas Airways, has said they want to expand more into the island nation. 

Also Air New Zealand is expected to unveil their domestic offerings next week too. 

img_destaque_overview_170_grd_03.jpgThe move into New Zealand comes as Virgin Blue has delayed their ultra low cost carrier in Australian and instead will move capacity to NZ.  Virgin chief executive Brett Godfrey said the airline believed it had the opportunity to be a "first mover" in the low-cost segment of the New Zealand domestic market.

Virgin Blue has 17 Embraers coming online soon which could be used to help launch some routes in NZ. 

Let's hope when Virgin Blue launches their V Australia airline to the US next year they are as competitive if not more so.   

The Australian 


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