Virgin Blue

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For the company that owns Virgin Blue see Virgin Blue Holdings Limited.

Virgin Blue
IATA DJ	ICAO VOZ	Callsign Virgin
Founded		2000
Hubs		Brisbane Airport
Focus cities		Sydney Airport Melbourne Airport Perth Airport
Frequent flyer program		Velocity Rewards
Member lounge		The Lounge (formerly Blue Room)
Fleet size		54 (Virgin Blue) 3 (Pacific Blue) 1 (Polynesian Blue)
Destinations		22 (Australia) 3 (New Zealand) 5 (Pacific Islands)
Headquarters		Brisbane, Queensland, Australia
Key people		Sir Richard Branson, Founder & Chairman Brett Godfrey, CEO
Website: www.virginblue.com.au

Virgin Blue is an Australian low-cost airline and Australia's second-biggest airline. It was founded by the British businessman Richard Branson's Virgin Group and is now majority controlled by Toll Holdings. It is based in Brisbane, Queensland.

Contents 1 History 2 Fleet 3 Disabled passengers 4 The Lounge 5 Live2Air 6 Sponsorship and marketing 7 Controversy 8 Trivia 9 Services 10 Associated carriers 11 References 12 External links

[edit] 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 fortunate 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.

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 and in 2006 many other overseas destinations.

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.

Virgin Blue is in negotiations with Boeing to acquire seven Boeing 777-300ER aircraft for use on international routes.^[1]

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.

Like other brands in the Virgin family, Virgin Blue takes an informal and humorous approach to business. On one flight, Richard Branson held a toilet paper race down the aisle of a Virgin Blue plane. Its inflight food menu is named A La Cart (a parody of the manner that food is served using a cart). However, this attitude has been reviewed, with many critical of the cabin crew's approach to inflight safety demonstrations.

From its inception in 2001, Virgin Blue did not have interline or marketing alliances with other airlines outside the Virgin Group, similar to the long-standing approach of Southwest Airlines. The one exception to this plan was a codeshare agreement with United Airlines, which allowed United customers to fly from America to any of Virgin Blue's Australian destinations that United did not already serve. In 2006, in an effort to be more competitive with arch rival Qantas, Virgin Blue started exploring these relationships, forming frequent flyer agreements with Emirates and Hawaiian Airlines and Malaysia Airlines. Virgin Blue also has an Airline Agreement with Regional Express for Regional Travelers

[edit] Fleet

Virgin Blue Fleet

Aircraft	Total	Passengers	Notes
Boeing 737-700	22	144
Boeing 737-800	26	177-180
Embraer 170	(3 orders)	78	Entry into service: 2007
Embraer 190	(11 orders)	106	Entry into service: 2007
Boeing 777-300ER	(7 orders)	328	Entry into service: 2008

The average age of the Virgin Blue fleet is 3.9 years as of April 2006.^{[citation needed]}

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.

In June 2006, Virgin Blue placed an order for 9 Boeing 737-800 by exercising purchase rights it held. Delivery of the aircraft is scheduled to begin in 2008.^{[citation needed]}

In November 2006, Virgin Blue announced plans to purchase 11 Embraer 190 and three Embraer 170 aircraft, with options for six more E-Jets.^[2]

In January 2007, German newspaper Börsen Zeitung^[3] told of information that Virgin Blue is in the final stages of buying a brand new fleet of long distance Airbus or Boeing aircraft. This is to start new routes between Australia and long haul destinations in response to Jetstar recently starting long distance international routes. On February 19, 2007 Virgin Blue announced it had exercised the options for the additional Embraer E-Jets. In March 2007 Virgin Blue announced it would purchase six Boeing 777-300ER aircraft and lease a seventh, to be used on long-haul routes to the United States.^[4]

[edit] Disabled passengers

In May 2006 a controversy arose over Virgin Blue's policy with regard to disabled passengers. Chief Executive Brett Godfrey affirmed the policy of the company that passengers who were "unable to look after themselves on board should travel with carers".^[5]

After a hearing in the Australian Human Rights and Equal Opportunity Commission, Virgin Blue backed down from this policy, agreeing to limit it to passengers weighing over 130 kg.^[6][7]

However the Chair of the ACT Disability Advisory Council, Craig Wallace, who uses a wheelchair, was refused passage on a Virgin Blue flight booked for 8 October 2006 .^[8] In a media release on 29 September, ACTDAC claimed that "Virgin Blue has also refused to refund $418 in fares from the flight for Mr Wallace or Council staff. Ironically, they have listed these fares as a ‘credit’ – a credit Mr Wallace or other people in his situation are prohibited from accessing by Virgin’s own policy".

[edit] The Lounge

To capture a share of the business traveller market, Virgin Blue decided to provide a members lounge facility for travellers. Originally this was called The Blue Room and provided facilities to members and guests on a pay-as-you-go basis.

In 2006, Virgin Blue revamped the lounge facilities and renamed it The Lounge, which offers all-inclusive facilities for a membership fee or casual fee basis. Facilities that are provided include buffet food and refreshments, newspapers, computers, and WiFi internet access for travellers.

Currently they are located at Brisbane, Sydney, Melbourne and Adelaide airports.

[edit] Live2Air

In December 2006, Virgin Blue announced a partnership between Australian cable television providers Foxtel and Austar, to introduce a "Live2Air" service on all flights by mid 2007. Approximately half the fleet had been fitted with Live2Air facilities by March 2007.

Virgin Blue was the first carrier outside North America to introduce multi-channel real-time satellite TV to its flights.^{[citation needed]}

The Live2Air service costs customers $6 per flight sector during an 'introductory period.' Following the 'introductory period,' the service will cost $6 on flights under 3 hours and $9 on flights over 3 hours. The only payment method is via an in-seat credit card swipe facility. Debit cards cannot be used.

Channels included on the Live2Air service in March 2007 comprised:

• Sky News Australia
• Fox News
• CNN
• Fox Sports News
• Fox Sports 1
• Fox Sports 2
• Fox Sports 3
• FOX8
• TV1
• Arena
• Fox Classics
• UKTV
• Flight Trak - Maps the aircraft trajectory using on-board GPS data (free channel)
• History Channel
• Lifestyle Channel
• Lifestyle Food
• How To
• Discovery Travel and Living
• Animal Planet
• Fuel TV
• Boomerang
• Nickelodeon
• Nick Jr
• Channel V
• Max
• Mix FM - Radio channel
• Classic Hits - Audio channel
• The Classics - Showcase of Foxtel programs
• Voyeuractive - Introduction to Live2Air + Advertorials (free channel)

[edit] Sponsorship and marketing

On 8 February 2007, it was announced that Virgin Blue had signed a two year sponsorship deal with NRL team South Sydney Rabbitohs. The Rabbitohs are the first rugby league team Virgin Blue has sponsored.^[9]

[edit] Controversy

• In January 2007 Virgin Blue attracted controversy when its staff at Adelaide Airport ordered a passenger to remove a T-shirt bearing the slogan 'World's Number One Terrorist' above an image of George W. Bush. The wearer, Allen Jasson of London, was informed that the garment was potentially offensive. Jasson had also experienced difficulty on earlier flights with Qantas. A spokeswoman for Virgin Blue defended the decision.^[10]

[edit] Trivia

• Virgin Blue's name was the result of an open competition; it is a play on the predominantly red livery and the Australian slang tradition of calling a red-headed male 'Blue' or 'Bluey'.^[11]

• 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.

[edit] Services

Further information: Virgin Blue destinations

[edit] 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.

[edit] References

1. ^ Virgin Blue Orders Boeing 777 Aircraft (Reuters: February 19, 2007)
2. ^ Virgin Blue Orders Embraer E-Jet Aircraft (The Australian: November 2, 2006)
3. ^ Virgin Blue Planning US Flights (Reuters: January 17, 2007)
4. ^ Virgin Blue Orders Boeing 777-300ER Aircraft For New Long-Haul Flights (Reuters: February 19, 2007)
5. ^ The Age, Virgin Blue defends wheelchair policy
6. ^ [1]
7. ^ [2]
8. ^ http://au.biz.yahoo.com/060929/31/wrmu.html
9. ^ http://www.asiatraveltips.com/news07/82-SydneyRabbitohs.shtml
10. ^ Banned for a George Bush T-shirt. News.com.au (December 14, 2006). Retrieved on 2006-01-22.
11. ^ Virgin Press Release, 5 February 2000

[edit] External links

• Virgin Blue
• Virgin Blue Fleet Detail
• Virgin Blue Passenger Opinions
• Airliners.net Virgin Blue Photos

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