Virgin blue ramps up business class

Virgin Blue is to introduce business class, Change its name and uniforms, and add larger Planes to domestic routes in a bid to become a far more potent competitor to Qantas...

The plans for the changes will be put to the airline's board this week.

New chief executive John Borghetti will take Virgin Blue from a low-fare only airline to one that offers all travel classes, according to airline sources in Brisbane.

The shake-up is designed to lift yields significantly and to move the airline into a head-to-head battle with Qantas for a significant stake of the business market.

Since Ansett's demise in 2001, Qantas has had a monopoly on business class travel although business class fares have not risen since that time.

Founder and chairman of the Centre of Asia Pacific Aviation, Peter Harbison, said Virgin Blue's premium economy had not worked because there was no clear distinction with the rest of the cabin.

"Fundamentally, Virgin Blue's premium economy is failing to wrest corporate and business travel away from the Qantas Group, leaving Virgin Blue at the bloody low-end of the market," he said.

Mr Borghetti will outline a name Change, thought to be Virgin Australia, which will bring Virgin Blue, V Australia and Pacific Blue under one brand.

He is also looking for more Planes, with analysts suggesting that either 300-seat A330s or 260-seat 767s may be leased for quick delivery ahead of a possible order for 290-seat 787s.

Source: www.theage.com.au