With Virgin Blue, as reported yesterday in TravelMole announcing a half year net profit of $124.3 million, an 81% increase on the previous first half, while also predicting a full year result 60% per cent above the previous full year, CEO Brett Godrfey more than suggested that Virgin Blue Australia could “morph” different airlines in the next five years as the carrier expands its capacity.
Thought to be in response to the price slashing Tiger Airways entering the market, Virgin Godfrey, stressed that the LCC proposal was purely conceptual at this stage, with Virgin Blue considering setting up a new Australian low cost carrier because Virgin Blue is continuing to move its existing business model away from being no frills, while also starting up a full service international carrier thought to be called Virgin Pacific.
Mr Godfrey confirmed that in Australia, Virgin Blue would continue to chase the higher yielding corporate market, seeking a larger piece of the Qantas corporate pie and while the demands of low price leisure travellers were often not aligned with that, the focus on budget travellers would not continue which is why the company was considering the launch of a new low cost carrier.
Report by The Mole
