Wirraway
15th May 2003, 12:15
AFP
Thursday May 15, 10:54 AM
Australia's Virgin Blue posts profit amid aviation industry turmoil
Richard Branson's discount Australian airline Virgin Blue defied the turmoil of the global aviation industry by turning in a 233 percent jump in its year-on-year profits, exceeding expectations.
The flamboyant British part-owner of the budget airline also laid to rest doubts that it would abandon plans to float on the Australian Stock Exchange, telling reporters the group would list by the end of 2003.
"As much as anything is definite, it is very likely that we will float before the end of the year," Branson said on a stop-over in Adelaide during a tour of Australia to launch his Virgin credit card.
Virgin Blue said pre-tax profit for the year ended March climbed to 158 million dollars (102 million US) from 47 million in 2002, far exceeding even the company's expectations.
Branson had been predicting the airline would post a profit of 100 million dollars.
"Virgin Blue has flown in the face of the global aviation trend by exceeding its targets and announcing a 158 million dollar trading profit before tax for the year ended 31 March, 2003," it said in a statement.
Chief Executive Brett Godfrey said the airline had demonstrated the potential of the low-fare model.
"It is the industry's high-growth sector and it continues to deliver acceptable returns despite challenging operating conditions," Godfrey said.
"While our local competition is Qantas, we benchmark ourselves globally against the leading low-cost carriers as they have demonstrated their growing dominance in the short-haul aviation market."
Godfrey said the airline had been insulated from the difficulties facing the global aviation industry such as the war on Iraq, the outbreak of Severe Acute Respiratory Syndrome (SARS) and the threat of terrorism.
"Furthermore, the situation overseas has encouraged many Australians to take their holidays closer to home during the past year," he said.
"Still, we believe its critical to build up our 'war-chest' for unforseen circumstances and therefore, all profits will be reinvested in the airline to allow for future acquisitions or event risk," said Godfrey, explaining the group's decision not to declare a dividend.
Virgin Blue has grown into a national carrier over the past 12 months, becoming a formidable competitor to Qantas Airways Ltd. after taking more than 20 percent of the Australian domestic market since it began in 2000.
Concerns emerged in recent months about whether the group would proceed with plans to make its stockmarket debut because of falling equity markets and the difficult operating environment for airlines the world over.
The airline's co-owners, Virgin Group and Patrick Corp., were also at loggerheads over when to float, with Patrick boss Chris Corrigan reluctant to go to the market too early and unwilling to reduce his company's 50 percent stake below 45 percent.
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Pic: Virgin Blue 737-800 VH-VOF on finals to BNE
http://www.jetphotos.net/viewphoto.php?id=70591
Photo by Wirraway
===========================================
www.virginblue.com.au
NEW ADELAIDE-CANBERRA FLIGHTS
MORE CAPACITY ON ADELAIDE-PERTH AND SYDNEY-CAIRNS
Virgin Blue is continuing its campaign to offer more direct low fare options, today confirming plans to begin flights between Adelaide and Canberra later this year with a launch sale fare of $69* one-way on the net
Virgin Blue Chairman Richard Branson made the announcement during a visit to Adelaide with Virgin Blue CEO Brett Godfrey where they are accepting an award from the Tourism Task Force for the airline's contribution to domestic tourism.
Other key schedule enhancements include:
New second daily Adelaide-Perth service:
The introduction of a second daily direct Adelaide-Perth service from September 15, which will double capacity on the popular route in line with demand. It follows Virgin Blue's recent launch of Adelaide-Broome flights.
New second daily Sydney-Cairns service:
The introduction of a second daily direct Sydney-Cairns service from September 8 aimed at satisfying the surge in domestic tourism demand to North Queensland.
New daily Adelaide-Canberra service:
The direct Adelaide-Canberra service will start from October 7 and will cater to the needs of Virgin Blue's growing number of business Guests. The 6.20am departure from Adelaide will allow for a convenient, affordable and productive business day in the nation's capital, with the return flight departing Canberra at 5.45pm and landing back in Adelaide at 7pm in time for dinner.
Virgin Blue Chairman, Richard Branson said, The Adelaide-Canberra flight combined with the upcoming launch of direct Canberra-Sydney service, highlights Virgin Blue's determination to offer a competitive alternative and an opportunity for the Government to reduce its wasteful spending of the taxpayers money, nearly all of which goes to one airline.¨
Canberra travellers will also benefit with another direct destination option and the convenient opportunity to sample some of the delights of the Adelaide region. It will also mean a new evening connection from Canberra to Perth.
The schedule expansion follows hot on the heels of news the low fare carrier has exceeded its own profit target for the year ending March 31, posting a healthy pre-tax profit of $158-million.
Both the airline profitability and continued growth flies in the face of international aviation trends and Virgin Blue is happy to be providing a stimulus to domestic tourism during challenging times.
Richard Branson continued, We are delighted to be bringing more good news and more great low fare options to the travelling public, especially at a time when it is most needed. Tourism globally is encountering very difficult times so it is vital that all organisations with links to the industry do their very best to help ease the burden¨
Virgin Blue is one of the few airlines in the world that is adding capacity rather than cutting back and is in the fortunate position of continued growth.
Chief Executive Brett Godfrey said, Our strategy from day one has been to offer sensational service, sophisticated new aircraft and long term low fares and I think it's fair to say that the cost of air travel is a lot cheaper today than it was three years ago.¨
We must remain vigilant with regards to costs and we call on other supporters of the tourism industry to lower their costs and pass the savings on to encourage more growth. We continue to lobby hard for the abolition of the Ansett levy and reaffirm our stance as the only airline committed to lowering its fares by $10 for a return flight the moment the levy is removed.¨
============================================
Thursday May 15, 10:54 AM
Australia's Virgin Blue posts profit amid aviation industry turmoil
Richard Branson's discount Australian airline Virgin Blue defied the turmoil of the global aviation industry by turning in a 233 percent jump in its year-on-year profits, exceeding expectations.
The flamboyant British part-owner of the budget airline also laid to rest doubts that it would abandon plans to float on the Australian Stock Exchange, telling reporters the group would list by the end of 2003.
"As much as anything is definite, it is very likely that we will float before the end of the year," Branson said on a stop-over in Adelaide during a tour of Australia to launch his Virgin credit card.
Virgin Blue said pre-tax profit for the year ended March climbed to 158 million dollars (102 million US) from 47 million in 2002, far exceeding even the company's expectations.
Branson had been predicting the airline would post a profit of 100 million dollars.
"Virgin Blue has flown in the face of the global aviation trend by exceeding its targets and announcing a 158 million dollar trading profit before tax for the year ended 31 March, 2003," it said in a statement.
Chief Executive Brett Godfrey said the airline had demonstrated the potential of the low-fare model.
"It is the industry's high-growth sector and it continues to deliver acceptable returns despite challenging operating conditions," Godfrey said.
"While our local competition is Qantas, we benchmark ourselves globally against the leading low-cost carriers as they have demonstrated their growing dominance in the short-haul aviation market."
Godfrey said the airline had been insulated from the difficulties facing the global aviation industry such as the war on Iraq, the outbreak of Severe Acute Respiratory Syndrome (SARS) and the threat of terrorism.
"Furthermore, the situation overseas has encouraged many Australians to take their holidays closer to home during the past year," he said.
"Still, we believe its critical to build up our 'war-chest' for unforseen circumstances and therefore, all profits will be reinvested in the airline to allow for future acquisitions or event risk," said Godfrey, explaining the group's decision not to declare a dividend.
Virgin Blue has grown into a national carrier over the past 12 months, becoming a formidable competitor to Qantas Airways Ltd. after taking more than 20 percent of the Australian domestic market since it began in 2000.
Concerns emerged in recent months about whether the group would proceed with plans to make its stockmarket debut because of falling equity markets and the difficult operating environment for airlines the world over.
The airline's co-owners, Virgin Group and Patrick Corp., were also at loggerheads over when to float, with Patrick boss Chris Corrigan reluctant to go to the market too early and unwilling to reduce his company's 50 percent stake below 45 percent.
===========================================
Pic: Virgin Blue 737-800 VH-VOF on finals to BNE
http://www.jetphotos.net/viewphoto.php?id=70591
Photo by Wirraway
===========================================
www.virginblue.com.au
NEW ADELAIDE-CANBERRA FLIGHTS
MORE CAPACITY ON ADELAIDE-PERTH AND SYDNEY-CAIRNS
Virgin Blue is continuing its campaign to offer more direct low fare options, today confirming plans to begin flights between Adelaide and Canberra later this year with a launch sale fare of $69* one-way on the net
Virgin Blue Chairman Richard Branson made the announcement during a visit to Adelaide with Virgin Blue CEO Brett Godfrey where they are accepting an award from the Tourism Task Force for the airline's contribution to domestic tourism.
Other key schedule enhancements include:
New second daily Adelaide-Perth service:
The introduction of a second daily direct Adelaide-Perth service from September 15, which will double capacity on the popular route in line with demand. It follows Virgin Blue's recent launch of Adelaide-Broome flights.
New second daily Sydney-Cairns service:
The introduction of a second daily direct Sydney-Cairns service from September 8 aimed at satisfying the surge in domestic tourism demand to North Queensland.
New daily Adelaide-Canberra service:
The direct Adelaide-Canberra service will start from October 7 and will cater to the needs of Virgin Blue's growing number of business Guests. The 6.20am departure from Adelaide will allow for a convenient, affordable and productive business day in the nation's capital, with the return flight departing Canberra at 5.45pm and landing back in Adelaide at 7pm in time for dinner.
Virgin Blue Chairman, Richard Branson said, The Adelaide-Canberra flight combined with the upcoming launch of direct Canberra-Sydney service, highlights Virgin Blue's determination to offer a competitive alternative and an opportunity for the Government to reduce its wasteful spending of the taxpayers money, nearly all of which goes to one airline.¨
Canberra travellers will also benefit with another direct destination option and the convenient opportunity to sample some of the delights of the Adelaide region. It will also mean a new evening connection from Canberra to Perth.
The schedule expansion follows hot on the heels of news the low fare carrier has exceeded its own profit target for the year ending March 31, posting a healthy pre-tax profit of $158-million.
Both the airline profitability and continued growth flies in the face of international aviation trends and Virgin Blue is happy to be providing a stimulus to domestic tourism during challenging times.
Richard Branson continued, We are delighted to be bringing more good news and more great low fare options to the travelling public, especially at a time when it is most needed. Tourism globally is encountering very difficult times so it is vital that all organisations with links to the industry do their very best to help ease the burden¨
Virgin Blue is one of the few airlines in the world that is adding capacity rather than cutting back and is in the fortunate position of continued growth.
Chief Executive Brett Godfrey said, Our strategy from day one has been to offer sensational service, sophisticated new aircraft and long term low fares and I think it's fair to say that the cost of air travel is a lot cheaper today than it was three years ago.¨
We must remain vigilant with regards to costs and we call on other supporters of the tourism industry to lower their costs and pass the savings on to encourage more growth. We continue to lobby hard for the abolition of the Ansett levy and reaffirm our stance as the only airline committed to lowering its fares by $10 for a return flight the moment the levy is removed.¨
============================================