17th August 2009, 08:36 AM
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New VAustralia Flights to Phuket/Johannesburg
Interesting at least.
Quote:
Virgin aims at the long haul
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Quote:
VIRGIN Blue plans to ramp up its Melbourne operations using long-haul offshoot V Australia to launch direct flights to Los Angeles, Phukett and Johannesburg.
But the launch of the Melbourne-LA service, originally planned for next month once a fourth Boeing 777 was delivered, will now be deferred to December to make better use of the new aircraft.
Rumours that Virgin was about to cancel or at least defer the delivery of the jet and scrap plans to operate long haul services from Melbourne swept investment circles up until the airline's recent $231 million capital raising.
Since then Virgin Blue has had the cash to grow its various businesses - the Virgin Blue brand in Australia, V Australia and Pacific Blue, which operates to New Zealand.
Virgin sources say the decision to push back the Melbourne-LA launch three months was driven by the need to create more work for the $265 million jet.
They denied it was because of a series of operating losses on the Pacific route which are expected to exceed $30 million when Virgin files its accounts this month.
Combined with start up costs of $60-$65 million, Virgin's Pacific gamble has cost the airline more than $100 million.
Had the Melbourne-LA service gone ahead next month, the airline would have used an aircraft worth $265 million for just two services a week, leaving it idle and not generating revenue for up to four days a week.
Since launching on the Pacific, Virgin chief Brett Godfrey has sought to offset V Australia's losses by striking a code share deal with US based airline giant Delta against the market strength of their opponents, Qantas and US carrier United Airlines.
The ramp up of Melbourne operations, to be announced today, includes direct flights from Melbourne to Phuket from December, and between Melbourne and Johannesburg from March.
Virgin's head of corporate affairs, Heather Jeffery, said that with a fourth jet the airline would get maximum use from the entire 777 fleet.
"Our network planners say that with another jet they will be able to establish a more efficient schedule and not have jets sitting on the ground and waiting to be used," she said.
Passengers with V Australia tickets affected by the delay will be flown free-of-charge to Sydney and Brisbane by Virgin Blue where they will then board a V Australia aircraft.
Under the new plan the twice-weekly Melbourne-LA service will now begin on December 1 and the once-a week Melbourne -- Phuket service will start two days later after the jet returns from America.
V Australia will be the only airline to offer direct Melbourne-Phuket and Melbourne-Johannesburg flights.
The March launch of the Johannesburg service has been timed to coincide with the beginning of the World Cup series of soccer matches in the country.
A Melbourne-Johannesburg connection also strengthens the ability of the various Virgin brands to offer round-the-world fares.
Passengers boarding a V Australia flight in Johannesburg will be able to fly to Melbourne, board a V Australia flight to LA and then fly Virgin Atlantic to London and back to Johannesburg.
The Virgin Blue offshoot also has applied to the the International Air Services Commission for permission to operate an Australia-Fiji service, but the number of flights and passenger numbers have yet to be determined.
Herald Sun
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