Virgin Australia and Tigerair dual-brand strategy commences as they start to coordinate routes

With little fanfare Virgin Australia and Tigerair have made the first public change to their networks as part of the dual-brand strategy they are now pursuing following Virgin's purchase of one-time competitor Tigerair that gives Virgin a budget off-shoot to match the Qantas Group's Qantas-Jetstar pairing. Tigerair will enter the Brisbane-Darwin market at flight timings almost identical to Virgin, which will change its timings to match Qantas.

The nuances may seem local but the implications are global: Australia will be the first market to see two full-scale dual-brand strategies compete head-to-head with each other.

Product, service and brand are key ingredients to a successful dual-brand strategy, but the network underpins it. Many airlines have tried a dual-brand strategy but most bundle some - sometimes all - of the necessary components. Virgin Australia is not just going to attempt a dual-brand strategy but is doing so in the backyard of one of the airlines that pioneered it. In one of the ironies typical of the Australian market, Qantas developed Jetstar and the dual-brand strategy to combat then low-cost Virgin Blue. In response Virgin started to move upmarket and reached a point where it largely had to become full-service, exposing its inability to successful target the low-end of the market. Buying Tigerair completes a nearly decade-long circle, but begins the intricate process of making the two airlines work alongside each other.