Virgin Blue's new CEO, John Borghetti, plans to redesign the carrier’s route network, product and seating in an effort to reduce its exposure to the leisure market and double its share of the business market (The Australian/The Age, 03-Jun-2010). Virgin Blue is in the process of an extensive review, which includes its loss-making New Zealand operations, suspending or streamlining low-cost domestic services and a possible revamp of V Australia. A route review is expected to be completed by the end of this month. It is also looking to enhance its premium economy seating, lounges and frequent flyer programme. The carrier has a 10% share of the domestic corporate market and is aiming to increase this to at least 15% over the next 12 to 14 months. Virgin is also considering moving its four brands under the one umbrella. However, Singapore Airlines has a veto over the use of the Virgin brand on international services. V Australia is reportedly no longer expected to break even later this year.
3-Jun-2010 10:59 AM