Virgin Blue's foreign fancy 'forgotten'

The Australian AVIATION, February 5, 2007



Steve Creedy, Aviation writer


VIRGIN Blue is worried that its proposal to launch a new international airline is being forgotten in the furore over plans by a private consortium to take over Qantas.

Australia's number two airline is planning to launch a new carrier using wide-body jets to serve the US and possibly some Asian destinations and is reportedly close to a decision on aircraft type. But it is getting nervous about suggestions from some Canberra politicians that Singapore Airlines should be allowed to enter the US route if the Qantas deal goes ahead.

The suggestions have prompted it to write to the federal Government reinforcing the potential benefits of its proposed international carrier.

A Virgin spokeswoman said yesterday that the airline was working hard on the project after the board gave approval to ramp up planning for the project in December.

She said people needed to better understand that Virgin had grown from a standing start six years ago to be a majority Australian-owned airline group operating over 300 flights a day to 22 airports within Australia and short-haul international flights to New Zealand and South Pacific island countries.

"While there are several commercial and regulatory prerequisites, no one should doubt our determination nor the role we will play in inbound tourism development," she said. "Many cities and regions understand that already from our domestic airline contribution.

"We strongly believe that based on our demonstrated capacity to drive growth and competition within Australia's domestic aviation market, we will do the same internationally starting with flights across the Pacific."

Singapore Airlines seized on the Qantas takeover bid to again push its claim that it should be allowed to fly between Australia and the US.

Qantas and United Airlines between them dominate direct services to the continental US and Singapore argues that freeing up competition on the route would make it easier to get seats and boost tourism into Australia.

Virgin says allowing the Singaporeans to enter the route would undermine its attempts to start the new carrier.

A spokeswoman for Transport Minister Mark Vaile said the Government still had no intention of reviewing its decision of early last year not to allow Singapore to fly the Pacific route.

"The Government has welcomed the announcement that Virgin Blue is investigating taking up flights across the Pacific," the spokeswoman said.