VIRGIN POSTS PROFIT TO LEAPFROG THE AILING FLYING KANGAROO
Written on the 28 August 2012
VIRGIN Australia has overtaken Qantas Group (QAN) to become Australia’s top airline, as forecast in this month’s Brisbane Business News.
The discount airline today posted a $22.8 million net profit after tax for the 2012 financial year, representing a $90.6 million improvement on the previous fiscal period.
Chief executive John Borghetti (pictured) confirms Virgin's high-yield fare sales had increased by 113 per cent on the back of corporate customers and changes to fare class structure.
The company also achieved its goal of securing 20 per cent of domestic revenue from corporate and government customers one year ahead of schedule.
Qantas, on the other hand, posted a $244 million net loss after tax for FY12 due to record high fuel costs and the grounding of its fleet. CEO Alan Joyce confirms all parts of the business were profitable except for the international network, which will be turned around this financial year.
In an exclusive interview with Brisbane Business News, Borghetti shows confidence about the direction in which Virgin is now heading.
“We are focussing on doing the best we can in every sector of the market that we want to compete in," he says.
“I believe we now have the best service in this country and I think arguably one of the best airline services in the world. What our staff is delivering is absolutely exceptional and to a level that makes me very proud.
“Some people think we are in the airline business to transport people. We are not. We are in the business to provide a valued service in a safe manner. And we think we do that better than anyone else."
Results posted this month by Virgin and Qantas have heralded an historic changing of the guard in Australia aviation. To read the entire exclusive story, get your copy of the current issue of Brisbane Business News – out now at a newsagent near you.