Virgin bid may slash fares to the US | Australian Frequent Flyer
Australian Frequent Flyer

Welcome to Australia's leading independent Frequent Flyer and Travel Resource since 1998!
Our site contains tons of information that will improve your travel experience.

Joining AFF is fast, simple & absolutely free - register now and take immediate advantage of these great BENEFITS.

Once registered, this box will disappear. And you will see fewer advertisements :)

Virgin bid may slash fares to the US

Not open for further replies.

Yada Yada

Established Member
Dec 6, 2004
1,872 said:
Virgin bid may slash fares
Jason Koutsoukis, Political Correspondent Canberra
September 24, 2006

Air fares to the United States could be slashed by up to a third, with the discount airline Virgin Blue expected to announce flights across the Pacific within the next two months.

Virgin Blue executives are finalising details of the plan, which would spark head-to-head competition with Qantas on one of its most profitable routes.

Qantas has a virtual monopoly on the busy route between Australia and the US West Coast, now carrying about 75 per cent of passengers. Its only competitor is the financially stricken US-based United Airlines.

Financial analysts estimate that the US route contributes about 15 per cent of Qantas' net profit.

Virgin Blue's chief executive, Brett Godfrey, wants the option of at least seven flights a week into the US, which it believes it would need to compete effectively with Qantas and United.

Flying to the US would require big capital investment from Virgin Blue, which would need several long-range aircraft that it does not have at the moment.

Virgin Blue is controlled by the Australian transport giant Toll Holdings, and the company's founder, British entrepreneur Sir Richard Branson, owns a 25 per cent stake through his Virgin Group.

"The package is not yet finalised," said one senior Virgin Blue source. "There are one or two sticking points we have to still work through, but we expect to be able to make an announcement within the next two months. We are very encouraged with the way this deal has gone so far, and when we do get up and running this will be very good news for travellers," the source said.

Prime Minister John Howard and federal Transport Minister Warren Truss are both actively supporting Virgin Blue's push across the Pacific.

Full Story...
Very encouraging news! :cool:
Not open for further replies.

AFF on Air Podcast

  • The Qantas Oneworld Award – AIR015
    Sat, 13 Jul 2019 02:07:50 AEST
      Learn how to fly around the world using your Qantas Frequent Flyer points as Matt chats to James Green, an award travel consultant at Frequent Flyer Solutions. This episode ...
  • Qantas Frequent Flyer Changes – AIR014
    Sat, 29 Jun 2019 00:40:35 AEST
      Last week, Qantas announced a major shake-up to its Qantas Frequent Flyer program. In this episode, former Head of Loyalty at Malaysia Airlines, Mark Ross-Smith, joins Matt ...
  • jb747’s Stellar Career with Qantas – AIR013
    Sat, 15 Jun 2019 03:00:41 AEST
      In this special edition of the podcast, Matt chats to John Bartels (a.k.a. jb747) about his flying career with Qantas, the A380, the QF30 incident, flight training, retirem ...
  • Cheap Virgin Australia Business Class – AIR012
    Sat, 01 Jun 2019 03:05:28 AEST
      Find out how to get cut-price Virgin Australia Business Class tickets by buying and redeeming Etihad Guest miles! This episode also includes some listener Q&A and an interv ...
  • Star Alliance Status – AIR011
    Sat, 18 May 2019 09:39:41 AEST
      Find out how to easily earn Star Alliance Gold status with several different frequent flyer programs! This episode also includes an interview with John Blom, Australia’s ...

Community Statistics

Latest member