Wirraway
4th Nov 2004, 13:24
Fri "The Australian"
Blue feels lure of Asia's last frontier
Steve Creedy, Aviation writer
November 05, 2004
VIRGIN Blue is in discussions with potential partners in at least three Asian destinations but says it is not likely to strike a deal in the short term.
Virgin chief executive Brett Godfrey said the airline had held talks with parties in Macau, India, Indonesia and Malaysia, and some of those discussions were continuing.
"I can't say anything more, other than we're looking at a terribly exciting part of the world, and the last real frontier for someone to get a toehold in."
Speculation about Virgin's Asian aspirations resurfaced recently on the back of reports it wanted to form a joint venture with Air Macau to service routes between the gambling resort and China.
Air Macau's shareholders reportedly met this week to discuss whether the carrier should waive a 25-year concession to operate as Macau's sole airline, in order for the joint venture to proceed.
Reports suggest Virgin would have a 30 per cent stake in the joint venture.
Mr Godfrey has also made it clear that he is enthusiastic about Asia as a market for low-cost carriers.
He dismisses suggestions the market is getting crowded, noting that half a dozen LCCs are servicing 3.5 billion people in Asia, compared to 50 servicing 220 million in Europe.
But he yesterday played down any possibility of a quick decision on any Asian plans.
"There's not likely to be any news in the short term because there is much work to be done on all those proposals before they become seriously viable," he said.
The Virgin boss also indicated any venture overseas would be a separate entity.
"Wherever we do it and whatever we do . . . it cannot distract and it will not distract management," he said.
"If we decide to do something in London or Brussels again, we'll do it with a separate group of people who will just be infused with our culture and our ideas."
Virgin is about two weeks away from announcing its half-year results, but Mr Godfrey said yesterday he was unable to give guidance on whether the airline's numbers would be above or below analysts' expectations.
"It'll be right where it's meant to be," he said.
The Virgin boss also could not say how much it had added to fares to cover rising fuel costs, but said he did not know how analysts arrived at a figure of a 15 per cent rise since March.
"It's been essentially $5 up and $5 down," he said.
============================================
Blue feels lure of Asia's last frontier
Steve Creedy, Aviation writer
November 05, 2004
VIRGIN Blue is in discussions with potential partners in at least three Asian destinations but says it is not likely to strike a deal in the short term.
Virgin chief executive Brett Godfrey said the airline had held talks with parties in Macau, India, Indonesia and Malaysia, and some of those discussions were continuing.
"I can't say anything more, other than we're looking at a terribly exciting part of the world, and the last real frontier for someone to get a toehold in."
Speculation about Virgin's Asian aspirations resurfaced recently on the back of reports it wanted to form a joint venture with Air Macau to service routes between the gambling resort and China.
Air Macau's shareholders reportedly met this week to discuss whether the carrier should waive a 25-year concession to operate as Macau's sole airline, in order for the joint venture to proceed.
Reports suggest Virgin would have a 30 per cent stake in the joint venture.
Mr Godfrey has also made it clear that he is enthusiastic about Asia as a market for low-cost carriers.
He dismisses suggestions the market is getting crowded, noting that half a dozen LCCs are servicing 3.5 billion people in Asia, compared to 50 servicing 220 million in Europe.
But he yesterday played down any possibility of a quick decision on any Asian plans.
"There's not likely to be any news in the short term because there is much work to be done on all those proposals before they become seriously viable," he said.
The Virgin boss also indicated any venture overseas would be a separate entity.
"Wherever we do it and whatever we do . . . it cannot distract and it will not distract management," he said.
"If we decide to do something in London or Brussels again, we'll do it with a separate group of people who will just be infused with our culture and our ideas."
Virgin is about two weeks away from announcing its half-year results, but Mr Godfrey said yesterday he was unable to give guidance on whether the airline's numbers would be above or below analysts' expectations.
"It'll be right where it's meant to be," he said.
The Virgin boss also could not say how much it had added to fares to cover rising fuel costs, but said he did not know how analysts arrived at a figure of a 15 per cent rise since March.
"It's been essentially $5 up and $5 down," he said.
============================================