Virgin introduces Newcastle-Gold Coast flights

[Wirraway]

abc.net,au

Virgin introduces Newcastle-Gold Coast flights
Thursday, 30 September 2004

Ongoing lobbying from the Hunter's business and tourism industries has prompted budget airline Virgin Blue to introduce new direct daily flights between Newcastle, on the NSW central coast, and south-east Queensland's Gold Coast.

Virgin will be the only airline to operate a direct jet service between the two destinations starting on November 24.

Virgin Blue's Amanda Bolger says there has been strong demand for the new route, with local flight schedules adapted to make way for the service.

"There's been quite a bit of lobbying from the Hunter's business and tourism communities for Virgin Blue to offer a direct flight," she said.

"While people were certainly taking advantage of the low fares going to Brisbane and then travelling down, obviously it's all about convenience. It's much easier when you can fly direct, especially when you've got great fares in the market."

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[The Enema Bandit]

There they go, blowing more wind up there own arses again.

[Dehavillanddriver]

They can't win can they!

If they promote a new service they are "blowing wind" and if they don't and a service fails I am sure that they will be idiots for not promoting it!

I can't say that I particularly like the style or tone of the media releases that Virgin puts into the market place, but heh its not my train set.

It does however pay my wages (regardless of what some may think of my remuneration!)

Newcastle has traditionally been the black hole for jet services - they have been successful with Coffs and the Newcastle - Brissie/Melbourne services so they probably have reason to expect that they will do ok here too.

[PammyAnderson]

HI there All
Not (quite) to do with this thread as such, but does in the sense of new routes.
How or why Does DJ not consider Darwin or Perth routes a bit more.
I.E: DN - CNS and vice versa
DN - PER " "
DN - ADL (via alice if necc)
DN - SY (during the day)
DN - BN (during the day)

All these routes are HUGE markets and would particularly fit in with the market DJ are aiming for.

I know many many people who said all they would have to do is treat the market there seriously, (i.e day time flights) and then they would be there. (no one is going to travel at 1am when there is 3 flights during the day by skimpy)

Very strange..........to leave such a huge monopoly on such a big market and continue to start new services such this.
Especially when the fleet size is nearly up there in terms of ansett domestic size, 50+ or there abouts

" I'M CONFUSED?"..........

[Sunfish]

Now watch Qantas suddenly increase its services on that route and lower their prices. Are you awake ACCC? Its called predatory pricing.

[commander adama]

Qantas have been flying the route for years, far longer than VB. Wake up sunfich. Talk about crap being posted on this forum. Get your facts right son.
ACCC yeah right. It's called I'm a fool.

[LEFT0]

commander.................you get YOUR facts right 'son'. QF have NEVER flown this route using a jet a/c. They once flew a 146 NTLBNE but have never flown into OOL from NTL using a jet. They currently operate Dash8s.................do some research before you mouth off..............;)

[badboiblu]

So let me get this right, Qantas will be the bad guys if they introduce jet services on NTL CG to counteract Virgin and be the predator. But Virgin can introduce Jet services over Sunstate "Qantaslink" and that's not predatory to Sunstate. Those guys jobs are on the line also.

[Sunfish]

Badboiblu. Qantas can introduce services when and where they like provided they don't "Predatory Price".

Predatory pricing is defined as offering a price that is below cost. It is illegal for a monopoly or a company that has signifigant market share, which Qantas does, to engage in this practice.

To put it another way, if Qantas is charging $700 for a fare between X and Y on a cost base of say, $500, and Virgin comes in with a Fare of $450 on a cost base of $300, then it is not only illegal for Qantas to offer a fare of $400, even matching Virgin's fare is illegal.

In other words, you cannot cross subsidise to drive competitors out of markets if you are a major player in an industry.

The only trouble is that the ACCC is as slow as a wet week to investigate such matters and I doubt whether they have the forensic accounting skills to determine what Qantas's cost base is for various aircraft types and routes.

[Metro Boy]

Enema Bandit, its probably better than what you blow up peoples arses.

[HOBAY 3]

I'm sure that when Jetstar launched in May with $29 fares, and DJ matched, that these were below cost (especially on HB-BN for example)! Was that illegal???

:confused:

[Sunfish]

Nope because neither of the companies had a monopoly or near monopoly on the market. Its only a concern when its done by the big guy to run the little guy out of the market.

[badboiblu]

Today's Brisbane newpaper "Brisbane to Newcastle on Virgin $49.00" Profit? at cost? below cost? Virgin the big player. Sunstale the little fellow. yer guess that seems fair:rolleyes: