17-Feb-2011 10:01 AM

Virgin takes new Qantas strategy as compliment

Virgin Blue CEO John Borghetti stated Qantas’ plans to operate internationally configured widebody B747 and A330 equipment on routes to Perth is a “huge compliment” to Virgin’s strategy (The Australian Financial Review, 17-Feb-2011). Virgin last year announced plans to operate two A330s between Australia's eastern cities and Perth, which will reportedly feature an international-standard business class. Mr Borghetti stated Virgin Blue was also looking at B747s and B777s to operate on route to Perth, but is confident the A330 is the “aircraft with the right economics”.

Virgin Blue: “It’s a huge compliment to our strategy than an airline the size of our competitor [Qantas] moves its international aircraft into a domestic sector to combat us – and we haven’t even started flying yet … It’s going to be a very competitive environment and we will continue to remain competitive. We’ve got a pricing strategy in mind and this hasn’t changed it because we’ve got a significant cost advantage on Qantas.” John Borghetti, CEO. Source: The Australian Financial Review, 17-Feb-2011.

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