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Virgin Blue is the leading Australian low-cost airline. It was founded by the British businessman Sir Richard Branson's Virgin Group and is now majority controlled by Toll Holdings. It is based in Brisbane, Queensland.
History
Virgin Blue was launched on 3 August 2000, with two aircraft initially offering 7 return flights a day between Brisbane and Sydney. This has been expanded to cover all major Australian cities and many holiday destinations.
The timing of Virgin Blue's entry into the Australian market was fortuitous as it was able to fill the vacuum created by the failure of Ansett in September 2001. Ansett's failure allowed Virgin Blue to grow rapidly to become Australia's second domestic carrier, rather than just a cut-price alternative to the established players. It also gave them access to terminal space without which growth would have been significantly limited. Delays in negotiating access to the former Ansett terminal at Sydney Airport however forced Virgin Blue to initially use a temporary terminal there.
Virgin Group's holding in Virgin Blue has since been reduced, initially via a sale of a half interest to Australian logistics conglomerate Patrick Corporation, and later by a public float. In early 2005 Patrick launched a hostile takeover for Virgin Blue. Patrick had been unhappy for some time with the company's direction. By the closure of the offer, Patrick held 62% of the company, giving it control. Virgin Group retains a 25% share. In May 2006 Toll Holdings acquired Patrick and became the majority owner of Virgin Blue.
Virgin Blue uses a familiar formula pioneered by airlines such as Southwest Airlines and Ryanair eliminating costs such as included in-flight meals and printed tickets in favour of selling food on-board and using telephone and internet booking systems. It has also cut costs by limiting the number of airports serviced and by operating one type of aircraft, the Boeing 737. It also pays its employees less than its major rival Qantas.
In September 2003, Virgin Blue announced that its wholly-owned subsidiary, Pacific Blue, would offer a similar cheaper service between New Zealand and mainland Australia. Pacific Blue aims to position itself as a low-cost competitor to Air New Zealand and Qantas on trans-Tasman routes. Air New Zealand have also created a low-cost airline Freedom Air and Qantas deployed Jetstar on selected NZ routes. Both Qantas (through Qantas and also its wholly-owned NZ subsidiary Jetconnect) and Air NZ continue to operate these routes in their own right.
Qantas responded to Virgin Blue's lower cost base by creating a new low-cost domestic carrier, Jetstar in 2004. In May 2005 Jetstar announced that it would also commence services to Christchurch, New Zealand.
In early 2006 Virgin Blue announced its intention to operate up to 7 flights a week to the US using Los Angeles International Airport (LAX), saying that the route was needed to make the airline as profitable as possible. The airline has also expressed interest in flying to Japan.
If Virgin Blue is successful in gaining a licence to fly the route it may acquire several Boeing 777-300 to operate on long-haul services.
Virgin Blue's international operations would be similar to those of Virgin Atlantic with stand-up bars and limo services, for guests in the business-class cabin.
Fleet
The Virgin Blue/Pacific Blue fleet consists of the following aircraft (at June 2006):
- 22 Boeing 737-700
- 26 Boeing 737-800 - five of these aircraft are registered in New Zealand as Pacific Blue aircraft (ZK-PBA thru F) while a number of Australian registered Virgin Blue aircraft are also in Pacific Blue colours (VH-VOQ, VOX).
The average age of the Virgin Blue fleet is 3.9 years (at April 2006)
In June 2006, it placed an order for 9 Boeing 737-800 by exercising purchase rights it held. Delivery of the aircraft is scheduled to begin in 2008.
Trivia
Virgin Blue's name was the result of an open competition; the predominantly red livery is due to the Australian slang tradition of calling a red-headed male 'Blue' or 'Bluey'.
Like "big brother" Virgin Atlantic, Virgin Blue gives its planes imaginative and amusing names. Each aircraft also features a "virgin girl" as nose art, complete with a wide-brimmed Aussie hat, trailing an Australian flag.
Services
Associated carriers
- Pacific Blue (airline) - Operates trans-tasman services and also services the Pacific Islands.
- Polynesian Blue - a joint venture between Virgin Blue and The Samoan Government, Polynesian Blue operates direct flights Apia - Sydney - Apia and Apia - Auckland - Apia with many other connections to other cities.
External links
- Virgin Blue
- Virgin Blue Fleet Age
- Virgin Blue Fleet Detail
- Fleet Listing
- Virgin Blue Passenger Opinions
- Airliners.net Virgin Blue Photos
- Pacific Blue
- virginbrand.com Unofficial blog of the Virgin Group
See also
Airlines of Australia | Low-cost airlines | Virgin Group | Companies listed on the Australian Stock Exchange
Virgin Blue | Virgin Blue | Virgin Blue | ヴァージン・ブルー | Virgin Blue
"Virgin Blue"