18 December 2008

V Australia promises Pacific price war

BRISBANE Ã¢â¬' V Australia has been cleared for take-off to Los Angeles in February, setting the stage for a fare war with rival Qantas on the Pacific route to the US west coast.

The airlineÃ¢â¬â¢s original launch date of December 15 was delayed due to industrial action at the Boeing factory in Seattle, which slowed the delivery of V AustraliaÃ¢â¬â¢s launch aircraft.

V Australia, a stablemate of Virgin Blue, will now take delivery of its first brand new 777-300ER on Australia Day, January 26.

V Australia is offering return airfares up to 45 percent off the normal economy fare to mark the launch of its US operations.

The A$1199 fare is for flights from Brisbane, Sydney and Melbourne to Los Angeles and is on sale until December 29, 2008, with a travel period March 1-October 24, 2009.

The V Australia fare undercuts by about $800 the cheapest fare Qantas was charging this week on the high-profit LA route, which has been coveted by both Singapore Airlines and Emirates.

The Australian government, however, has ring-fenced the route, protecting it from foreign predators. Qantas has more than 70 per cent of direct Australia-US passenger traffic; the slack is taken up by the American airline United.

V Australia has also confirmed April 8, 2009, as the revised launch date for direct Brisbane-Los Angeles flights.