wirgin blew
2nd Jul 2006, 23:23
Virgin Blue seeks US route fleet
Steve Creedy, Aviation writer
July 03, 2006
VIRGIN Blue has taken a significant step towards launching services to the US by asking aircraft manufacturers for proposals to supply up to five long-haul planes by early 2008.
Australia's No2 carrier issued a request for proposal (RFP) to Europe's Airbus and US rival Boeing late last month.
The move to put aircraft acquisition on a more formal footing is the first positive sign for the trans-Pacific plan since a hiatus caused by the ownership battle between Toll Holdings and Chris Corrigan's Patrick Corp put major decisions on hold.
It also means a further potential blow to Singapore's hopes of changing the federal Government's stance on allowing Singapore Airlines access to the lucrative Australia-US route.
The Government has indicated it is prepared to keep Singapore off the route while an Australian carrier establishes itself because it believes a home-grown operator would better boost tourism.
It is understood the Virgin RFP seeks up to five new aircraft by the first quarter of 2008 but says it would like deliveries to start next year if possible. It also seeks between eight and 12 planes in the longer term.
Spokeswoman Heather Jeffery last night confirmed the airline's continued interest in the US route and said Virgin was examining the economics of different city pairs using its preferred business model.
"Obviously, we need to start detailed examination of different aircraft types but I can't confirm any detail," she said.
The delivery time frame means Virgin will initially be looking at aircraft other than the new Boeing 787 ordered by Qantas and Air New Zealand or Airbus's competing A350.
However, availability and price could still be an issue after robust traffic growth has prompted a flurry of aircraft orders and boosted global demand for new planes.
That growth shows no sign of letting up, despite savage rises in aviation fuel costs. International Air Transport Association figures released last week show passenger demand in May was 7 per cent higher than last year's.
Virgin has had a 10-person team looking at the US route for some time and has been focusing on various city pairs.
Virgin Blue chief executive Brett Godfrey hopes to put a proposal to the airline's new board in September or October.
But there have been few indications of how the carrier will be structured and a launch is still contingent on the new airline being able to operate a minimum daily service. That requirement is still being negotiated between the US and Australia.
Officials say the long-haul carrier will offer lower prices on the Pacific with a product that is neither no-frills nor single-class but "dramatically different" from present offerings.
But it will be unable to use the Virgin monicker because Singapore Airlines, which owns 49 per cent of Richard Branson's Virgin Atlantic, can veto the use of the trademark on international routes.
The decision to issue the RFP comes as Virgin announced on Friday that it would change its end of financial year for the third time in as many years.
The carrier is required under the Corporations Act to synchronise its end of financial year with new majority owner Toll.
The logistics company's end of financial year is June 30 as opposed to the September 30 date adopted under previous Virgin owner Patrick and its original fiscal year end of March 31.
Virgin said it would advise the market once it had determined the date of the company's next annual meeting.
USA! USA! USA!
:ok:
Steve Creedy, Aviation writer
July 03, 2006
VIRGIN Blue has taken a significant step towards launching services to the US by asking aircraft manufacturers for proposals to supply up to five long-haul planes by early 2008.
Australia's No2 carrier issued a request for proposal (RFP) to Europe's Airbus and US rival Boeing late last month.
The move to put aircraft acquisition on a more formal footing is the first positive sign for the trans-Pacific plan since a hiatus caused by the ownership battle between Toll Holdings and Chris Corrigan's Patrick Corp put major decisions on hold.
It also means a further potential blow to Singapore's hopes of changing the federal Government's stance on allowing Singapore Airlines access to the lucrative Australia-US route.
The Government has indicated it is prepared to keep Singapore off the route while an Australian carrier establishes itself because it believes a home-grown operator would better boost tourism.
It is understood the Virgin RFP seeks up to five new aircraft by the first quarter of 2008 but says it would like deliveries to start next year if possible. It also seeks between eight and 12 planes in the longer term.
Spokeswoman Heather Jeffery last night confirmed the airline's continued interest in the US route and said Virgin was examining the economics of different city pairs using its preferred business model.
"Obviously, we need to start detailed examination of different aircraft types but I can't confirm any detail," she said.
The delivery time frame means Virgin will initially be looking at aircraft other than the new Boeing 787 ordered by Qantas and Air New Zealand or Airbus's competing A350.
However, availability and price could still be an issue after robust traffic growth has prompted a flurry of aircraft orders and boosted global demand for new planes.
That growth shows no sign of letting up, despite savage rises in aviation fuel costs. International Air Transport Association figures released last week show passenger demand in May was 7 per cent higher than last year's.
Virgin has had a 10-person team looking at the US route for some time and has been focusing on various city pairs.
Virgin Blue chief executive Brett Godfrey hopes to put a proposal to the airline's new board in September or October.
But there have been few indications of how the carrier will be structured and a launch is still contingent on the new airline being able to operate a minimum daily service. That requirement is still being negotiated between the US and Australia.
Officials say the long-haul carrier will offer lower prices on the Pacific with a product that is neither no-frills nor single-class but "dramatically different" from present offerings.
But it will be unable to use the Virgin monicker because Singapore Airlines, which owns 49 per cent of Richard Branson's Virgin Atlantic, can veto the use of the trademark on international routes.
The decision to issue the RFP comes as Virgin announced on Friday that it would change its end of financial year for the third time in as many years.
The carrier is required under the Corporations Act to synchronise its end of financial year with new majority owner Toll.
The logistics company's end of financial year is June 30 as opposed to the September 30 date adopted under previous Virgin owner Patrick and its original fiscal year end of March 31.
Virgin said it would advise the market once it had determined the date of the company's next annual meeting.
USA! USA! USA!
:ok: