Sir Richard Branson’s carrier Virgin Blue, widely billed as the entrepreneur’s attempt to crack the Australian airline market, has reportedly issued its second profits warning in just over a year.
According to The Guardian, the carrier admitted it had been “battered” in a price war with Jetstar, the budget airline set up by Qantas.
Shares in the airline, which is quoted on the Australian stock exchange, fell by 20 per cent yesterday.
The newspaper sees the announcement as a blow to Branson’s ambitions to launch similar ventures in India, China and Nigeria.
The Guardian states that investors are unhappy that the company’s managing director Brett Godfrey sold some five million shares a month before the profit warning.
Report by Tim Gillett, News From Abroad Ltd
