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Virgin Blue responds to record fuel costs; further capacity growth reductions and new baggage fees


Virgin Blue Airlines announced (18-Jul-08) four key measures in its second round response to record fuel prices. These include: [1740 words]

Unlock the following content in this report:


  • Fuel accounting for 35% of cost base
  • To remove a further two B737 aircraft from Australian domestic market; defers five Embraer deliveries from 2009
  • Announces new "pay for weight" baggage policy; excess baggage fees to increase
  • To introduce new ‘Go Fare' aimed at price-sensitive market
  • No staff cuts until jet fuel reaches USD185-200/barrel

Graphs and data:

  • Virgin Blue outcomes from its ongoing review
  • Virgin Blue capacity (ASK) growth: Jan-07 to May-08
  • Virgin Blue fuel cost per ASK: FY02 vs FY07
  • Virgin Blue new checked baggage fees
  • Virgin Blue new checked baggage fees for Velocity Frequent Flyer members
  • Asia Pacific airline checked baggage fees
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