Virgin Blue goes long haul - launches V Australia

[Keith T 2]

http://www.smh.com.au/news/travel/v-austra...5043163190.html

 

V Australia to take off

 

Virgin Blue today launched the name of its new long haul international airline, V Australia, which it plans will take to the skies by the end of next year.

 

The transpacific airline will be profitable within two years, the carrier's chief Brett Godfrey says.

 

Yesterday Virgin received Australian regulatory approval from the International Air Services Commission (IASC) to fly ten services a week to the US, as long as the airline hits the skies before November 30 next year.

 

The airline now awaits approval from US regulators.

 

Asked by reporters when the new airline would be able to turn a profit, Mr Godfrey said it would be trading in the black two years after lift off.

 

"We expect to be profitable within the second year of operations," he said.

 

"In the first year we're going to incur just at our own cost base in Virgin Blue, before we even start flying, somewhere around $25 million.

 

"So those costs will certainly be exacerbated once the airline is up and running ... and we expect the first few months to be fairly heavy."

 

"But Australia, rest assured, you'll get some discounts around that period."

 

Mr Godfrey said he expected the outlay for V Australia to come in at around $70 million, "over and above lines of credit that are needed to secure the aeroplanes".

 

Virgin has spent about $2.2 billion to purchase six Boeing 777-300ER for V Australia, and possibly $2.6 billion if the airline takes out an option on a seventh.

 

Mr Godfrey said that, with ten flights a week, V Australia would take about 12 per cent market share of the Australia to US west coast market.

V Australia will compete with Qantas and US airlines United and Hawaiian Airlines on the lucrative direct Australia-US route.

 

"By default, if we end up with ten frequencies a week we'll end up with something around 12 per cent," he said.

 

"It's not dramatic. We're not looking to come in and really stampede the market because we've got limited capacity in the first instance."

 

Mr Godfrey declined to outline specific routes V Australia would fly, or the prices the airline is likely to charge, saying more would be revealed at its results briefing in August.

 

Mr Godfrey also said it was unclear how long it would take to get US regulatory approval for the service.

 

"The Australian Government through the IASC, which is our bilateral negotiating team, have said that they believe that (ten flights) is an appropriate number," he said.

 

"Now we have to wait for the US to come back, and agree whether that's right or not. The timeline on that could be weeks or months. We just don't know."

 

However, Mr Godfrey said V Australia would be launched in the fourth quarter of 2008.

 

"This is the first time in decades Australia has a start-up long haul international airline and we look forward to bringing competitive air fares and a new style of service to the trans-Pacific market," he said.

[Peter Smith 1]

Given a competition was held to come up with a name, I think they could have come up with someone more inspriring than V Australia. None the less, it doesn't appear to be all that well liked, but I think their livery is fantastic (and much better than the crap QF have just churned out!). The fin is very early 90's Ansett

 

 

 

[Isaac 0]

The order was placed quite a while a go. First long-haul low cost carrier operating the 77W

[Keith T 2]

The order was placed quite a while a go. First long-haul low cost carrier operating the 77W

 

V Australia will be a full service carrier.

[Isaac 0]

V Australia will be a full service carrier.

But i think they still call themselves low cost, right ? Frills will still be provided but still a low cost carrier (of course their low cost concept is different than that of JQ International, it's more of the Air Berlin low cost concept i believe).

 

[Keith T 2]

But i think they still call themselves low cost, right ?

 

Nope. Very much full service, legacy-style. They'd aim to price themselves competitively to compete with QF and UA of course.

[Isaac 0]

Nope. Very much full service, legacy-style. They'd aim to price themselves competitively to compete with QF and UA of course.

Opps. I guess i must had misread it somewhere. Thanks for the clarification

 

By the way, they have not said anything about what passengers can expect onboard V Australia, have they ?

 

[Keith T 2]

By the way, they have not said anything about what passengers can expect onboard V Australia, have they ?

 

By Nov 2008.

 

Waiting for US approval now.

 

 

Edited July 25, 2007 by Keith T

[S V Choong 4]

 

 

25 July 2007

Introducing 'V Australia' - Virgin Blue Announces Name of New International Longhaul Airline and Livery

 

Wednesday 25 July 2007: Competition on the Trans Pacific route is a step closer with the official announcement in Sydney today of the name of Virgin Blue's new long haul carrier and flagship aircraft.

 

Virgin Blue is also pleased to announce that yesterday it received formal confirmation from Australia's International Air Services Commission (IASC) that it has approval to operate return non-stop services between Australia and the United States commencing late 2008*.

 

"V Australia" will initially operate flights between the east coast of Australia and the west coast of the United States of America, with the first flight operated by a brand new B777-300ER launch aircraft named "Didgeree Blue".

 

The livery of "V Australia" was also unveiled today, keeping in touch with its Virgin Blue roots, but revealing a contemporary look which will launch a new era of competition on the Trans Pacific route. The airline will sport a smart silver fuselage with a red tail featuring the stars of the Southern Cross and elements of the Australian flag.

 

It will be the fourth airline in the Virgin Blue Group of Airlines including multi award winning domestic carrier Virgin Blue, New Zealand based airline Pacific Blue and Polynesian Blue, the joint venture airline between Virgin Blue and the Government of Samoa.

 

Virgin Blue put out a call to all Australians as part of a nationwide "Name the Airline" competition in conjunction with MIX FM radio station to help name the new international airline.

 

The competition attracted approximately 5942 entries which included some especially creative suggestions such as "Randy Roo Airlines", "Choo Choo Flying Big Blue" and "Pineapple Airlines".

 

The clear favourite was however eventually selected by the judges from the thousands of entries with "V Australia", nominated by Teresa Manuel from Sydney, unanimously voted as the best name for the new airline.

 

"Didgeree Blue", suggested by Irene Wilson of Brisbane, was also chosen as the perfect name to grace the nosecone of V Australia's flagship and launch aircraft.

 

Virgin Blue Airlines Group Chief Executive, Brett Godfrey, said, "We had an amazing response to help name the airline and V Australia stood out among the entries. It is nice and simple, easily recognised, both understated and obvious and has a clear Australian identity".

 

"This is the first time in decades Australia has a start-up long haul international airline and we look forward to bringing competitive air fares and a new style of service to the Trans Pacific market".

 

Commenting on the new livery Brett Godfrey continued, "It is important for us to use the Southern Cross not only for its geographic connotations, but also for its place in Australian aviation folklore. Southern Cross was also the name of Charles Kingsford Smith's aircraft as the intrepid aviator opened the world to Australia with his record breaking long distance flights and we think it appropriate to reflect the very best of a modern confident Australia taking to the skies".

 

V Australia has also applied for permission from the United States Government to commence services in November 2008 and is continuing its progress with the development of its launch route network, product and fare structure.

 

* Subject to regulatory approval

 

Source:

http://www.virginblue.com.au/about_us/news...2007#news250707

 

The livery reminds me of the long gone Ansett Australia livery. <_>

Edited July 25, 2007 by S V Choong

[Sandeep G 1]

hehehe SV, similar topic already lah deeii but nevermind! can merge! BTW, in the other topic Gibby also commented on the similarities with the ol' Ansett Australia Livery!

 

 

[KC Sim 2]

V Australia leaves the management with the option to rename it Virgin Australia sometime in the future (perhaps after SIA sells off its 40% share in Virgin Atlantic Airways).

 

The livery looks to me as being very similar to Qantas on the one hand, formet Ansett Australia on the other hand . . . and somewhere in the middle, there is a touch of BMI with that union jack appearing like a watermark.

 

Very smart livery in my opinion.

 

KC Sim

[Pieter C. 5]

More positive Virgin Blue news:

 

Virgin Blue Doubles Profit On Strong Demand

 

August 21, 2007

Australian airline Virgin Blue almost doubled its full-year earnings after attracting more corporate travelers, helping offset rising fuel bills.

 

Virgin Blue, Australia's second-largest airline, said it expected further revenue growth this year but also higher costs as it sets up new services in New Zealand and to the United States.

 

Net profit for the year to June 30 was AUD$216 million (USD$174 million) compared with AUD$112 million a year earlier. Net profit before one-off items was AUD$232 million.

 

Rival Qantas Airways also said last week passenger demand had pushed up annual earnings 50 percent and tipped a strong year with no sign of a let up in appetite for air travel.

 

Virgin Blue said it has 49 percent of its fuel requirements hedged for the current year and 77 percent of its currency requirements hedged.

 

The company last month said it planned to launch a new airline called V Australia to fly on routes between Australia and the United States. The plan still needs US regulatory approval.

 

Virgin, 62 percent owned by Toll Holdings, also flies to New Zealand, Fiji and Tonga. It has about a third of Australia's domestic market where it competes against Qantas and its budget carrier Jetstar.

 

Virgin has six Boeing 777-300ER widebody aircraft on order with options for another six.

 

Competition is hotting up in Australia's domestic market with the arrival of Singapore's Tiger Airways and Qantas expanding its services. Middle Eastern carriers are also adding flights on Australia routes.

 

(Reuters)