Pets in the Cabin - Coming soon on Virgin Australia

Well… they reckon only 2 pets per flight, and only on ‘selected’ flights. But let’s assume 100 one ways a day across the entire network.

That works out to around $11 million a year @$150 per pet.

For absolutely zero outlay. Pretty smart.
Yep, this is smart. It's very restricted, only small pooches with their owners in dedicated seats. I see this being quite a windfall for them.
I suspect in the real world, they will lose close to zero customers doing this and gain many new pax, because, as others have said, they will have a monopoly on this, being a net gain in customers.
In the USA, from the times I've observed it, it's by far the wealthier types of passengers who take their pooches & pets on planes, and other passengers sitting next to them quite enjoyed it.
Passengers booking on VA will know they may be sitting next to a pooch, so there won't be any surprises.
 
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We used to tkae our dog on flights in Europe. Its very regulated, needs to be booked in advance, under 6kg, certain dimensions for the bag etc. No way anyone around us would even known we had a dog. Flew on Lufthansa, KLM, Air France, Iberia, Air Europe - was only the LCC's that didn't permit it.
 
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