Virgin Syd-Canberra-Syd Services Under Threat
Virgin's Canberra-Sydney link under threat
7:27 PM July 14
Virgin Blue is renewing its threats to axe flights out of Canberra unless the Federal Government increases its share of the lucrative Commonwealth travel market.
Public servants currently use Qantas for around 85 per cent of their travel, with only around 15 per cent of flights going to budget airlines.
Virgin Blue chief executive Brett Godfrey says the Commonwealth travel market is worth around $300 million and he wants the Government to use his airline 30 per cent of the time.
With the airline only attracting about 5 per cent of all government travel, Mr Godfrey says the Canberra to Sydney daily flight is now under review.
"I believe yes, that's (30 per cent) very attainable," he said.
"If that's our market share - we're very relevant for the top corporates in this country, we're very relevant for budget travellers in this country, and pretty much for everyone in the middle - that's our national percentage, we believe that should also apply for Federal Government.
"We're only one flight now, we had three, we had to pull it back.
"Again, when the biggest business in town doesn't support you, which they didn't a couple of years ago, it just doesn't make any business sense whatsoever to continue those services."
Source: ABC