Virgin wins 'flight deal of century'

Virgin Blue has been awarded the contract for passenger services between Perth and two Indian Ocean territories...

The budget airline has taken over flights to Christmas and the Cocos Islands after winning a Federal Government tender.

Details of the "can't lose" Federal Government contract were revealed by WAtoday.com.au last year. The Government subsidises the flights once revenue falls beneath an agreed minimum threshold, and did so to the tune of $972,000 in the last financial year.

The services were previously operated by Cobham Aviation, the former National Jet, which actually lost the contract in 2008 but  continued to operate them after the winning bidder, Sky Air World, went into administration.

Virgin Blue chief executive Brett Godfrey said the airline would start thrice-weekly flights in April.

These would include flights from Perth to both territories, and flights between the territories, and Virgin Blue would use a 104-seat Embraer E-190 jet.
 
Mr Godfrey said the contract meant Virgin Blue would boost its domestic network to 30 destinations.

"Being literally only a few hours from Perth, Christmas and Cocos Islands are hands down two of the best, unspoilt and truly unique island holiday destinations our region has to offer," he said.

"As with other markets we've entered, we're confident our new services will further stimulate tourism to these most remarkable jewels in the Indian Ocean and also help to strengthen relations with the mainland."

While the new flights were within the Australian domestic network, all services to and from Australia will arrive into and depart from Perth International Airport.

Source: watoday.com.au