Virgin Blue receives Aussie approval to cross the Pacific
A report in the Herald Sun says that Virgin Blue yesterday won the green light from Australian aviation authorities to begin a long-haul service across the Pacific next year.
The Brisbane-based carrier now needs US backing, expected within weeks, to operate up to 10 flights a week, undercutting Qantas’s fares and challenging it on its most profitable route.
US authorities had wanted to allow only the two flights a week to which bilateral arrangements entitle Australian-based carriers, and some congressmen had reportedly tried to block a deal.
Virgin Blue will announce the decision today, and the name it intends to operate under.
An agreement between Singapore Airlines and Virgin Blue founder Sir Richard Branson bars it from using the Virgin brand on flights beyond the Australian mainland.
The Herald Sun believed that as late as last night, Virgin was considering a short list of four names and had prepared separate tailplane logo designs.
A Virgin source said last night the carrier hoped to begin the services in the third quarter of 2008.
Virgin had sought approval for a double daily service from a low-cost secondary airport, with the long-haul operation planned for two years.
A project team investigated routes, types of service, and US holiday destinations.
The carrier has already placed an order worth more than $1 billion for seven Boeing 777s.
Each is expected to have a capacity of more than 300.
Virgin’s move into the US market is likely to happen as Jetstar begins its own long-haul services to Europe next year.
Jetstar’s managing director, Alan Joyce, has plans to reopen the services to Rome and Athens that his company’s parent brand, Qantas, abandoned as unprofitable some years ago.
Mr Joyce said Jetstar could offer fares less than $800 one-way to the two capitals.
The Malaysian-based low-cost carrier, airasiax, is also in talks to begin a daily service between Kuala Lumpur and Australia, possibly from Melbourne’s secondary airport, Avalon.
Azran Osman-Rani, airasiax’s managing director, told the Herald Sun last night he was in talks with Avalon’s owners, the Fox family.
He said the talks centred on plans for a new terminal and for the Customs and security upgrade required by Commonwealth authorities.
“We hope to begin by October but the single biggest concern is going to be our ability to complete all the regulatory applications,” Mr Osman-Rani said.
Report by The Mole
John Alwyn-Jones
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