VIRGIN ENTERS PRICE WAR FRAY

Written on the 3 November 2011

VIRGIN ENTERS PRICE WAR FRAY

VIRGIN Australia has made its intentions clear that it will benefit from the Qantas IR debacle with fares that undercut Qantas by between $120 and $380 a seat.

CEO John Borghetti (pictured) announced the launch of business-class seats on the high-demand Brisbane, Sydney and Melbourne triangle route would commence on January 18, 2012.

“Our new business-class product is a key part of our strategy to reposition Virgin Australia as the airline of choice for all market sectors,” says Borghetti.

“Providing an excellent product on the triangle is a key priority for us, with routes such as Melbourne-Sydney among the busiest in the world.”

Introductory one-way flights between Brisbane and Sydney are priced from $579, while Brisbane to Melbourne flights cost at least $885. Airfares include access to Virgin lounges, priority check-in and boarding, Luke Mangan-designed menus and premium alcohol beverages.

It has been a baptism of fire for Borghetti, the man appointed in May last year to lift the former Virgin Blue – now Virgin Australia - out of its slump and on the radar of the burgeoning domestic travel sector.

Retaining a clear vision after the fog of natural disasters, the Navitaire booking system failure in October 2010 and plummeting FY11 profits of $67.8 million will require some dedication.

Borghetti however is au fait with crisis management.

“We’re an airline, it’s never smooth sailing,” he says.

“The important thing in aviation is that there are events that happen in a business. The other thing is that it’s always at the forefront – it’s a very newsworthy industry.

“When you’re repositioning an airline to the extent that Virgin Australia has, it is difficult given the year we have had – natural disasters and trying to initiate as we go through significant change.

“The whole aviation industry has been faced with large scale events, including the price of oil peaking, but with good management and staff we are focussed on the task ahead.”

Almost 18 months into the job at Australia’s No.2 airline and Borghetti has encountered obstacles one might expect to occur over a decade. While large scale challenges still await the former Qantas boss, he is confident of taking the brand skyward while increasing market share and connecting regional Australia. Read the entire story by getting your copy of Brisbane Business News' October issue – out now in more than 500 greater Brisbane newsagencies.


Latest News

COCHLEAR R&D INVESTMENT DRIVES NEW PRODUCTS AND BOOSTS PROFIT AND REVENUE

COCHLEAR (ASX: COH) has boosted its 2017 full year net profit by 18 percent to $223.6 million and has forecast furthe...

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

TREASURY WINES UNCORKS SWEET $269M PROFIT DESPITE INVENTORY WOES

REVEALING the fruits of its past year of labour, Treasury Wine Estates (ASX: TWE) has posted a 55 per cent increas...

TATTS GROUP POSTS PROFIT AND REVENUE DROP ON FEWER JACKPOTS AND BAD WEATHER FOR RACING

TATTS Group (ASX: TTS) has posted a full year net profit loss of 5.7 percent and a revenue decline of 8.4 per cent as...

Related News

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

ANALYSTS PREDICT WHAT AUSSIE LIVING IS LIKELY TO BECOME IN THE NEXT CENTURY

AS THE Australian population continues to grow, analysts are predicting what the country is likely to look like wi...

SEVEN WEST REPORTS MASSIVE LOSS AND CUTS CEO TIM WORNER'S PAY PACKET BY $450K

SEVEN West Media (ASX: SWM) has posted a full-year loss of $744.3 million and cut CEO Tim Worner's pay packet by ...

HOW MAKING MISTAKES AND PASSION SCORED WEIGHT LOSS PARTNERS A DEAL WITH SHARK TANK'S JANINE ALLIS

THEY partnered up to provide a scientific and targeted approach to dieting, and Kate Save and Geoff Draper cut Sha...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter