AAP
Any new entrant needs a fair go: Virgin Blue
BRISBANE, June 3 AAP|Published: Monday June 3, 7:07 PM
Virgin Blue chief executive Brett Godfrey today pleaded for "a fair go" for any new carrier that tried to start up in Australia.
Mr Godfrey said Virgin Blue would enjoy the competition offered by a three-airline industry, adding that there may be niche market opportunities for a new entrant.
But he warned it was important the Australian Competition and Consumer Commission beef up its powers to protect fledgling carriers against anti-competitive behaviour.
"I believe a third entrant will start up," Mr Godfrey said.
"I'm not afraid of a new airline coming in.
"But ... they've got to fight for it, grab their market as we did, but they should be given a fair go."
There is speculation that a member of the international Star Alliance loyalty scheme might come to Australia to fill the vacuum left by the demise of Ansett, which was a member of the scheme.
Star Alliance members Singapore Airlines and Air New Zealand have been touted as carriers that might take on the job.
There have been continuing concerns over the inability of alliance passengers to redeem frequent-flyer points in Australia.
Last week, Australian Tourist Commission managing director Ken Boundy said Australia was missing out on tens of thousands of international visitors because of the lack of a Star Alliance carrier.
Mr Boundy told the Australian Tourism Exchange in Brisbane there was a business opportunity in the marketplace waiting to be seized.
Qantas, which belongs to the Oneworld loyalty program, has been giving Star Alliance members discounts since the collapse of Ansett.
Mr Godfrey said Virgin Blue has spoken with some Star Alliance members which could help fill the void left by the failed airline.
"We will do some arrangement no doubt with some Star Alliance members but we're not going to change our model to accommodate them to the degree that they want," he said.
"We're not interested in membership of Star Alliance nor would we probably be offered."
By Chris Herde