Virgin Blue boss Brett Godfrey has dismissed fears that the entry of Singapore-based Tiger Airways into domestic aviation in Australia will have an impact on the Aussie carrier.
Godfrey has questioned the viability of Tiger, suggesting that despite its connections to Singapore Airlines and Ryanair, “the reality is Australia is not Asia, it’s a different market”.
Godfrey warned that Tiger “are not going to last very long if they give away all their seats at $10 or $1”.
But in a nod to next month’s launch of Tiger services between Singapore and Perth, and Tiger’s application to be allowed to fly domestically within Australia, Virgin Blue is contemplating a return to its budget roots with a “lite” version aimed at the cost conscious leisure market.
Godfrey said Virgin Blue was well placed to withstand competition from Tiger, Qantas and QF’s low-cost offshoot, Jetstar.
The airline was “as prepared as possible for the future and whatever the market – or the domestic market in particular – may throw at it in terms of competition in the next 12 to 18 months”.
Virgin Blue has confirmed that it is in final discussions to secure an order for seven Boeing 777s in advance of launching services to the United States in 2008.
