Virgin Blue

Virgin Blue is an Australian domestic low-cost airline founded by the British businessman Sir Richard Branson's Virgin Group.

Code Data

• IATA Code: DJ
• ICAO Code: VOZ

  History

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 have for some time been unhappy 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's headquarters is located in Brisbane.

The airline acquired the airport terminals and many of the customers of the failed Ansett.

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

Virgin suffered a setback when it was not able to acquire a permanent terminal in Sydney Airport relying instead on a temporary terminal. However this issue has been resolved, making Virgin Blue the principal competitor to Qantas in Australian domestic aviation.

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 competitor to Air New Zealand and Qantas, both of which have been criticised for having fairly expensive fares.

Qantas has responded to Virgin Blue's lower cost base by creating a new low-cost carrier, Jetstar.

Virgin Blue, with a predominately red livery, was named in the Australian slang tradition of calling a red-head male 'Blue' or 'Bluey'.

Services

Includes Pacific Blue destinations.

Oceania