First Phase Of Network Review
THE VIRGIN BLUE GROUP OF AIRLINES ANNOUNCES FIRST
PHASE OF NETWORK REVIEW
• Pacific Blue to boost trans-Tasman capacity and exit of NZ domestic
• Increased Pacific Blue services to SE Asia and Pacific Islands
• V Australia to focus on long haul: USA, South Africa and Thailand
• Virgin Blue domestic capacity up by 490,000 seats
CHRISTCHURCH, MONDAY 16 AUGUST
2010: The Virgin Blue Group of Airlines (VBA) Chief
Executive Officer John Borghetti today announced the first
phase of the Group’s network review aimed at delivering
increased competition and capturing growth
opportunities.
Mr Borghetti said: “As we enter a new
era for Virgin Blue it is vital that we have the right
aircraft on the right routes if we are to fully exploit our
competitive advantages in the context of the Group’s three
core business: domestic short haul, international medium
haul and international long haul.
“We are adding
capacity to routes with strong revenue potential and
accordingly, removing capacity from services which are
underperforming,” he said.
“These changes will
maximise yields, increase aircraft utilisation and also
provide a more attractive schedule for the business market,
including better integration of our international and
domestic schedules.”
Mr Borghetti said that Pacific
Blue would expand as an international medium haul airline
with operations across the Tasman, the Pacific Islands and
South East Asia.
“Pacific Blue will cease flying
New Zealand domestic routes and redeploy its New
Zealand-based aircraft on to trans-Tasman and medium haul
international routes. Guests holding forward bookings on New
Zealand domestic routes from 18 October onward will be
provided with re-accommodation and refund options,” he
said.
Mr Borghetti said that growing capacity on
trans-Tasman routes was a positive step that would see an
increase in New Zealand-based staff. Pacific Blue currently
employs around 450 New Zealanders at crew bases in
Christchurch and Auckland and its head office in
Christchurch and the increase in international flying means
up to 100 new jobs would be created.
“By
restructuring our Pacific Blue operations we are now able to
free up our long haul V Australia aircraft to capture the
growing demand for travel to the USA.
“By year-end,
V Australia will be fully devoted to international long haul
business more suited to the B777 fleet, with Fiji serviced
by Pacific Blue.
Recent changes to our domestic flight
patterns and frequencies now provide more than 490,000
additional seats across the Virgin Blue domestic network.
“We are delivering what our Guests tell us they
need – more capacity and frequency on Eastern seaboard
capital city routes, and to key tourist destinations such as
the Gold Coast and Uluru,” Mr Borghetti said.
Key
route and frequency changes
1. PACIFIC BLUE
INTERNATIONAL EXPANSION (INCLUDING PREVIOUSLY ANNOUNCED AND
NEW ROUTES)
• From 6 August 2010, Brisbane - Hamilton (New Zealand) flights increased from three to four flights per week. Sydney – Hamilton flights ceased on 30 July;
• From 18 August 2010, Denpasar - Melbourne direct flights will increase from five flights per week to daily;
• From 19 August 2010, Perth – Phuket services will increase from two to three flights per week;
• From 17 September 2010, Brisbane – Dunedin services will increase from three to four flights per week; and
• From 31 October 2010, Christchurch – Melbourne frequency will increase from four flights per week to a daily service.
2. V AUSTRALIA CAPACITY INCREASE INTO USA, SOUTH AFRICA AND SE ASIA
• From 19 October 2010, V Australia’s Sydney - Los Angeles schedules will be adjusted to a morning departure from Sydney to provide travellers convenient same-day connections to the US East Coast;
• From 19 October, capacity on V Australia medium haul flights to Fiji will be taken up by Pacific Blue*;
• From December 2010, V Australia will operate daily services between Sydney and Los Angeles; and
• From December 2010 V Australia will also operate an additional service weekly between Melbourne and Johannesburg; Melbourne and Los Angeles; and Melbourne and Phuket.
3. VIRGIN BLUE
Virgin Blue will continue to focus on strengthening its domestic operations, building on its recently increased frequency and capacity on key routes and the bi-lateral agreement with Sky West, increasing its reach into the burgeoning Western Australian intrastate market.
Mr Borghetti said there
were more developments in the pipeline to increase domestic
competitiveness and further announcements would be made in
due course.
*Subject to regulatory
approvals.
ENDS