Sky News reports that as expected just before the end of trade on Friday Virgin Blue announced four key measures to help it cope with the rising cost of fuel, including, the budget carrier introducing new baggage fees on discounted fares from next month removing two Boeing 737 aircraft from the domestic market by October.
That sees a reduction in capacity of about 3 per cent – in addition to a previously announced 6% capacity reduction for the ’09
The airline will also introduce new baggage fees, with a ‘pay for weight’ policy coming into effect from mid-august, replacing the current allowance of up to 20 kilograms of free checked baggage.
With all of the new pressures, Virgin says it will be able to compete with Qantas on its new Trans-pacific route.
A Report by The Mole from Sky News
