Mar-21-2007  Virgin Blue plots course for US(topic overview)CONTENTS:
REFERENCES  Virgin Blue chief executive Brett Godfrey said the new, as yet unnamed, international airline would start flying the lucrative Pacific route from next year. "We will launch that airline in 2008," he said. [1] Weve had great success with the Next-Generation Boeing 737 aircraft and we did extensive research into the selection of aircraft type for our new long-haul operation, Brett Godfrey, Virgin Blues chief executive said in a statement. The 777-300ER has proven its economic leadership and reliability, and these traits are crucial as we move out to build our new international product.[2] Virgin Blue, the Australia's second-largest airline, said it would buy six Boeing 777-300ER widebody aircraft, with an option for six additional aircraft. It also signed an agreement with International Leasing Finance Company for a seventh 777-300ER, taking the total commitment price to $A2.6 billion.[3] Qantas, Australia's leading airline, is facing increased competition on its lucrative route to the east coast of the U.S. after Virgin Blue, its domestic low-cost rival, announced Wednesday it would add six Boeing 777 aircraft to its fleet in order to start flying to America.[4] Mr Godfrey denied Virgin Blue had asked for flights from the U.S. three times a day. He said flights once a day at least were a necessity if the airline was to succeed. He said likely routes could be from anywhere along Australia's east coast to anywhere along the U.S. west coast, but declined to talk about airfares.[5]  VIRGIN Blue is planning to buy six new long-haul Boeing jets as it prepares to launch an international service on the Pacific route to give Qantas competition. [5] The 2008 earnings guidance came with the caveat that it did not take into account the impact of increased competition from Tiger Airways or Virgin Blue, as well as possible liabilities from an investigation into alleged air cargo price-fixing. Tiger, the low-cost airline partly owned by Singapore Airlines, received this month clearance from the Australian foreign investment review board to launch a subsidiary to compete with Qantas.[4] The Australian government refused last year to grant Singapore Airlines, Asias most profitable airline, the right to fly the route, saying the decision would give Virgin Blue an opportunity to start trans-Pacific services.[6] Virgin Blue's long haul project team is currently recruiting other key management team members. Within the first twelve months of its operation, the long haul airline will create 1160 Australian based jobs including cabin crew, pilots and ground crew.[7] LONDON - Virgin Blue Holdings Ltd has ordered six Boeing 777-300ER jetliners, with options for six more, in a deal worth 1.5 bln usd, the Brisbane-based airline said in a statement. Virgin Blue said it will also lease one additional 777-300ER as part of its bid to establish a new long-haul airline.[2] The new airline to be launched by Virgin Blue, as yet unnamed, will pay $2.2 billion for six Boeing 777-300ER jets with an option for a seventh, bringing the possible total to $2.6 billion.[5] Aircraft manufacturer Boeing confirmed that Virgin Blue had ordered six new aircraft, with a view to at least one more, and had also exercised options for five additional 737s.[8] Virgin Blue's commitment "could be a final nail in the coffin for Singapore's hopes on the route in the medium term,'' said Sadubin. With today's orders, Virgin Blue said it has made A$2.6 billion worth of aircraft investments for its new carrier.[9] "We were there from the very start of Virgin Blue operations in August 2000 and we are excited to be standing beside Virgin again as the airline enters a new phase of innovation and growth. These new 777-300ERs will help establish its new value-based, long-haul operation as a winner.[10] Virgin Blue said that it already has the regulator approval process under way. Boeing said the 777 family of airplanes is well-accepted with passengers and airlines alike due to its fuel-efficient twin-engine design, high reliability, low operating costs, and comfortable and spacious interior.[11] Virgin Blue, which had also been considering Airbus A340s, flagged the likely Boeing purchase last month when it released an 81 percent rise in half-year profit.[12] Ian Thomas of Capa Consulting, an aviation-based consultancy, argued Wednesday that it seemed investors did not "fully understand'' the serious threat to Qantas' profitability resulting from the expansion plans of Virgin Blue and Tiger: "Whenever we have seen more competition, particularly from low-cost carriers, we have seen yields dip.''[4] Customers often get big discounts on published prices. Virgin also plans to launch its own low-cost carrier next year in response to competition from Qantas offshoot Jetstar.[13] "We will create more Australian jobs, bring more tourists and provide choice and vigorous competition on the trans- Pacific route," Godfrey said. [6] Godfreys plan could slow profit growth at Qantas, playing into the hands of a buyout group that has made an offer of 11.1 billion Australian dollars, or $8.9 billion, for the national carrier.[6] Mr Turnbull says other Australian airlines are likely to adopt similar measures. "Virgin's not a big airline but other airlines will follow Virgin and then others, and then this over time will become standard," he said. The airline also plans to direct $500,000 a year to offsetting carbon emissions from its own staff's travel.[14] The agency gave a tentative OK to a revised plan filed in January by Burlingame, Calif. -based Virgin America, saying in a statement that the revised plan "should meet U.S. ownership rules" that cap foreign control of a U.S. airline at 25 percent.[15] Virgin Blue has invited its passengers to pay extra on top of their ticket prices to help offset the airline's greenhouse gas emissions. Customers booking online will be asked whether they want to make a payment that will go towards abatement programs such as planting trees.[14] The range of the 777-300ER has increased by 630 nautical miles since entry into service. With this order, 49 airlines have ordered 924 Boeing 777s. [10] The contract signed with Boeing includes six 777-300ER aircraft and options for six additional planes, the Brisbane- based company said in a statement today.[16] REFERENCES 1. Virgin Blue to fly Pacific | Herald Sun 2. Latest News | News | Hemscott 3. Virgin Blue to buy six Boeings - New Zealand's source for business, stock market & currency news on Stuff.co.nz 4. Virgin Blue buys six Boeing planes for A$2bn - Financial Times - MSNBC.com 5. Virgin readies for US take off | NEWS.com.au Business 6. Virgin Blue plans Australia-U.S. routes - International Herald Tribune 7. Virgin Blue in Multi Billion Dollar Aircraft Deal as it prepares to Launch New International Airline 8. Competition for Qantas as Virgin Blue goes global 9. Bloomberg.com: Australia & New Zealand 10. Virgin Blue Orders Boeing 777-300ERs to Initiate Long-Haul Service 11. Daytrading, Eminis, Forex trading, Swing Trading BREAKING NEWS - 513035 12. Virgin Blue To Buy Six Boeing 777s 13. Australia's Virgin Blue to Buy Six Boeing Planes - News - MSNBC.com 14. Jetsetters can chip in for greenhouse offset. 21/03/2007. ABC News Online 15. Business Briefing 16. Bloomberg.com: Australia & New Zealand |