1-Jul-2010 11:34 AM

Virgin Blue to integrate with V Australia as part of restructuring efforts

Virgin Blue CEO, John Borghetti, reportedly plans to enact the following changes as part of the carrier's restructure efforts (Reuters/Australian Financial Review/Bloomberg/The Age, 01-Jul-2010):

  • V Australia: The carrier plans to integrate Virgin Blue's long-haul offshoot V Australia into the main company under a new management structure. The long-haul carrier will reportedly be integrated into the airline's operations division, to "increase accountability, remove duplication and create greater integration across our domestic and international network";
  • Business market: The carrier is seeking to double its share of the domestic business-class market as part of efforts to improve its ability to compete with Qantas;
  • Executive team: The carrier plans to increase its senior executive team from six to eight. Qantas' former Head of Government and International Relations Jane McKeon will be in charge of government relations under the changes. A new executive position headed by Martin Daley was also created to focus on products and guest services. Meanwhile, CCO, Live Savage, will reportedly oversee network management. In other executive news, Virgin Blue COO, Andrew David, will leave the airline by the end of Aug-2010;  
  • Product: The carrier is looking at eliminating its Premium Economy class, which will be replaced with full Business class seating;
  • Branding: The carrier is considering updating its cabins and uniforms.

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