1-Oct-2010 11:31 AM

Virgin Blue has 'flexibility' states annual report

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]

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