Mar-21-2007 Virgin Blue challenges Qantas on lucrative US route(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] The Australian airline company is leasing a 777-300ER, as well as taking further options. Virgin Blue has built a strong reputation as a value-based carrier in Australia, and will apply its business practices to the new international business that will connect Australia with North America and other Asian destinations.[4] "We will create more Australian jobs, bring more tourists and provide choice and vigorous competition on the Trans Pacific route." Virgin Blue is expected to announce the name of its long-haul international airline in the coming months.[5] 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.[6] 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] 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.[7] 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.[8] 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.[9] 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.[10] "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."[11] 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.[12] 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.[13] Virgin Blue's long haul project team will also be recruiting other key management team members in the mean time.[5]  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. [14] 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.[12] 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] We are excited to be standing beside Virgin 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."[16] Mark Vaile, Australian transport minister, said on Wednesday that the government was "delighted" that a second Australian airline would soon fly across the Pacific. Singapore Airlines and other non-Australian carriers have pushed for the right to fly on Australia-US routes, but have been unable to persuade Canberra of their cause. [17] 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.[9] "We will create more Australian jobs, bring more tourists and provide choice and vigorous competition on the Trans-Pacific route,'' Godfrey said.[10] A team is currently in the United States working with Government representatives through the regulatory approval process. It is expected that the new airline will create over 1100 new jobs for Australians, including cabin crew, pilots and ground crew. [5] 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.[4] 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.[18] The government review of international aviation, released in February last year, called for open skies and foreign carriers to commit to a long-term presence in Australia. [6] 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. Malaysian National News Agency :: BERNAMA 5. e-Travel Blackboard: Australia's Number One Industry Newsletter 6. Virgin readies for US take off | NEWS.com.au Business 7. Daytrading, Eminis, Forex trading, Swing Trading BREAKING NEWS - 513035 8. Virgin Blue in Multi Billion Dollar Aircraft Deal as it prepares to Launch New International Airline 9. Virgin Blue plans Australia-U.S. routes - International Herald Tribune 10. Bloomberg.com: Australia & New Zealand 11. Virgin Blue, Boeing Confirm Plane Order | Chron.com - Houston Chronicle 12. Jetsetters can chip in for greenhouse offset. 21/03/2007. ABC News Online 13. Virgin Blue To Buy Six Boeing 777s 14. Australia's Virgin Blue to Buy Six Boeing Planes - News - MSNBC.com 15. Business Briefing 16. Air Cargo News :: Latest Air Cargo News 17. Financial Times Business News: Virgin Blue expands fleet for US route - MSN Money 18. Bloomberg.com: Australia & New Zealand |