Virgin Blue an Australian Low Cost Airline Review

virginblue.com.au

Launching as the first sustainable low fare airline in Australian skies, Virgin Blue has grown to be recognised the world over as an innovator and leader in the global aviation industry. Virgin Blue took off on 31 August 2000 with just two aircraft, one route and 200 team members who shared a clear goal to revolutionise air travel in Australia.
Not only did the airline halve the cost of airfares, it also re-introduced genuine Guest service to the flying public along with a strong commitment to being the best in the business.

Since its launch Virgin Blue has evolved from a start-up entrepreneurial business to become Australia’s leading major airline for service, on-time performance and value for money, as well as being one of the world’s most profitable airline companies.

With approximately 32 per cent of the domestic market and a modern fleet of 55 Next Generation Boeing 737-700 and 800 series and Embraer E170 and E190 aircraft, Virgin Blue Airlines operates over 2200 flights a week to 22 Australian cities and centres and employs more than 4200 team members.

Virgin Blue was listed on the Australian Stock Exchange in December 2003, and today is owned by majority shareholder Toll Holdings, co-founders Sir Richard Branson and Brett Godfrey, Virgin Blue team members and other shareholders.

In January 2004, the airline launched Pacific Blue, its New Zealand based airline which offers international flights between Australia, New Zealand, the Cook Islands, Fiji, Tonga and Vanuatu, and domestic flights within New Zealand commencing from 15 November 2007.

Virgin Blue is an Australian low-cost airline, it is Australia's second-biggest airline as well as the largest airline (by fleet size) with the Virgin branding. It was founded by British businessman Richard Branson's Virgin Group. Flights have been expanded to cover all major Australian cities and many holiday destinations.

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 also cut costs in the past by limiting the number of airports serviced and by operating one type of aircraft, the Boeing 737.

In 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 also created a low-cost airline Freedom Air (which will cease operations in March 2008) and Qantas deployed Jetstar on selected NZ routes. Both Qantas (through Qantas and also its wholly owned New Zealand subsidiary Jetconnect operating as a Qantas branded franchise) and Air NZ continue to operate these routes in their own right. In 2007, Virgin Blue announced their intention to begin domestic Pacific Blue services within New Zealand. Flights between Auckland and Wellington, Christchurch and Wellington, and Auckland and Christchurch.