Virgin Blue announced (30-Sep-2010) in its FY2010 annual report that it has now implemented a “go-forward” strategy, focussed on improving the value of its core business, withdrawing from loss making routes, lessening its reliance on the leisure market by improving market share of the corporate and government markets and improving yield and revenue while retaining its focus on costs. To achieve this, a new organisational structure has been implemented, network and yield management capabilities have been enhanced and the group has commenced redeveloping the product offering. The carrier warned that conditions continue to be volatile and competitive activity continues to put downward pressure on yields. The soft growth at the end of FY2010, at this stage, is now sufficient to suggest a consistent across-the-board improvement in market conditions. However, the carrier stated that if market conditions continue to be volatile, and the signs of recovery seen at the end of FY2010 do not result in consistent and sustainable upward trend, it does have the flexibility to adjust capacity through lease returns and rescheduling of aircraft deliveries. [more]
Virgin Blue has 'flexibility' states annual report
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Cebu Pacific Air is again looking at expanding in the Australia market by launching flights to Melbourne. Efforts in recent months to improve Cebu Pacific’s performance in Sydney, which was launched in 2014, are bearing fruit and the airline is confident with Melbourne it can stimulate further demand in the Philippines-Australia market.
The LCC initially added Melbourne to its network plan in 2015 after the Philippines and Australia forged an extended air services agreement. But Cebu Pacific subsequently decided to shelve plans to launch Melbourne, and has instead been using additional A330 capacity to expand in its domestic and regional international market.
Melbourne is now back on the agenda and is the next priority – leapfrogging Honolulu – for Cebu Pacific’s long haul operation. A new partnership with Melbourne-based Tigerair Australia is a key driver in making Manila-Melbourne a viable route, along with the anticipated rapid growth in Australian visitor numbers to the Philippines.
Philippine Airlines Part 2: more expansion to Australia and China as A321neos arrive in 2017
Philippine Airlines (PAL) is planning more international growth over the next year or two with a focus on Australia, China, the US and potentially Europe. Nonstops for Brisbane and more capacity for Sydney are in the pipeline for Australia, while in the Chinese market PAL is looking to launch Chengdu.
In Europe PAL is considering adding a second European destination in 2018, with Frankfurt and Rome under consideration. PAL has already added capacity to Europe this year by upgrading its London Heathrow service to daily.
This is the second in a series of analysis reports on the Philippines market. The first report focused on PAL’s Middle East operation, which could be reduced in 2017 amid intensifying competition and weakening demand.