The following definition of extended range operation comes from CAO 82.0
extended range operation in relation to an aeroplane with two engines, means an operation to a distance in excess of 60 minutes flight time from an adequate aerodrome calculated at single engine cruise speed.
CAO 82.0 goes on to say that
all twin engined aircraft operated under an Air Operators’ Certificates authorising aerial work operations, charter operations and regular public transport operations are limited to 60 minutes flight time from an adequate aerodrome calculated at SE cruise speed,
UNLESS granted a written exemption by CASA, i.e. ETOPS approval.
To say that
Virgin Blue has forced itself into flying its planes within one hour of an airport ….
is tautology as effectively they have never had ETOPS approval and are not exempt from the provisions of CAO 82.0 and thus are simply complying with the same regulations that all other twin operators must conform to.
p.s. Buster, this isn't directed at you, rather, the reporters who
write this story as if VB have been punished, they haven't really, they just haven't been rewarded with ETOPS. 