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Virgin Blue declares war on the domestic market; global alliance in the wind?

Analysis

The 50 firm B737NG orders included in Virgin Blue's announcement today is no increase on earlier provisional numbers. But the context of the statement and the provision for another 50+ options and purchase orders makes it clear that the airline has no plans to stand still. Rather than merely looking to hold its position in the market as Tiger intrudes further and the Qantas Group flexes its muscle, the carrier will use the orders to " aggressively ensure market share is not eroded and…provide additional growth options."

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