Virgin Australia Regional Airlines focussed on creating competition to stimulate demand

Virgin Australia Regional Airlines CEO Merren McArthur, speaking at the CAPA Australia Pacific Aviation Summit, stated (09-Aug-2013) the airline's strategy for regional operations is based on the introduction of services with ATR equipment to new markets to create competition and stimulate demand. Ms McArthur said the strategy was largely successful in Queensland but less so in Western Australia due to smaller populations outside strong mining and leisure markets. Ms McArthur said delivering the "right size aircraft for the right size market" allowed the airline to operate higher frequencies to manage passenger numbers in smaller markets. Ms McArthur said the carrier's main challenge is to stimulate demand while covering costs at the same time. [more - original PR]