is an
Australian Low-cost Airline founded by the
British businessman
Sir Richard Branson's Virgin Group . It is based in
Brisbane .
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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 has 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.
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 one of its major rivals,
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.
-800 at Melbourne]]
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.
The Virgin Blue/Pacific Blue fleet consists of the following aircraft (at October
2005 ):
- 22 Boeing 737-700
- 29 Boeing 737-800 - three of these aircraft are registered in New Zealand as Pacific Blue aircraft while a number of Australian registered Virgin Blue aircraft are also in Pacific Blue colours.
Initially Virgin Blue leased their aircraft but recent additions to the fleet have generally been purchased outright. Virgin Blue owned aircraft are indicated by the Boeing customer code FE.
If Virgin Blue is succsessful in gaining accsess to international routes it may buy a new fleet of Boeing 777-300ER (Extended Range)
The average age of the Virgin Blue fleet is 3.9 years (at April 2006)
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.
Includes Pacific Blue destinations.
