Cheap flights to the US
A news.com.au reports says that Virgin Blue CEO Brett Godfrey says the open skies agreement between Australia and the United States will bring in much needed competition to the airline market.
Federal Transport Minister Anthony Albanese announced that Australian and US airlines would now be able to determine the frequency of services routes without government interference, as part of the open skies agreement.
Under previous restrictive arrangements, new airlines were permitted only four services a week between the two nations, effectively restricting competition.
Mr Godfrey welcomed the announcement, adding, “It will bring much-needed competition for he trans-Pacific route.”
“It will be a huge win, not just for Virgin Blue, but for Australian jobs,” he said.
“It will be huge win for the Australian travelling public and it will be a huge win for tourism, particularly those parts that have been hard hit in the last few months in Australia.”
Virgin Blue had been asking for 10 services a week to the United States to make the route viable, he said.
Today’s announcement meant that the Virgin Airlines’ V-Australia offshoot can go ahead with plans to introduce air services later this year, he said.
“What it allows us to do now is to proceed with some confidence forward for the launch in the fourth quarter this year, and come next month we will be fully unveiling what V-Australia is going to be all about,” he said.
“We’ll be unveiling its fares, its products and initial launch routes and so for us here at Virgin Blue and V-Australia it’s an exciting time.”
Mr Godfrey declined to say what kind of reductions the travelling public could expect in airfares to the United States.
“Let’s just say Virgin Blue has come into markets before and done particularly well from stimulating the market,” he said.
“This has been a classic duopoly for some time now and I’m very confident that we are going to be able to offer something that tempts the Australian travellers but more importantly, bringing foreign travellers – Americans – to our shores.”
A Report by The Mole from news.com.au
John Alwyn-Jones
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