Virgin Blue board approves Long Haul, upgrades profit forecast
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Virgin Blue board approves Long Haul, upgrades profit forecast
http://www.theaustralian.news.com.au...-23349,00.html
VIRGIN Blue plans to launch a long-haul international airline on US routes have been given a green light by the airline¿s board as Australia¿s second biggest carrier yesterday upgraded its net profit forecast by 40 per cent to more than $158 million.
Virgin said the revised forecast followed an improvement in market conditions and the airline’s performance as the result of initiatives launched last year.
The airline said it would now begin a planning and implementation phase of its plan to fly wide-body aircraft to the US and possibly some Asian destinations.
”Subject to conditions such as regulatory approval, the granting of adequate bilateral access and the conclusion of aircraft negotiations, the airline expects to launch international long-haul operations by late 2008,” it said.
Virgin’s moves to push ahead with its US plans will come as a blow to Singapore Airlines, which had hoped to capitalise on a takeover of Qantas by private equity firms to push its own aspirations to fly on the lucrative US route.
The federal Government cited a desire to see another Australian airline fly on the route as a major reason for denying Singapore access to the route earlier this year.
It has reiterated that view as recently as this week.
Virgin said the revised forecast followed an improvement in market conditions and the airline’s performance as the result of initiatives launched last year.
The airline said it would now begin a planning and implementation phase of its plan to fly wide-body aircraft to the US and possibly some Asian destinations.
”Subject to conditions such as regulatory approval, the granting of adequate bilateral access and the conclusion of aircraft negotiations, the airline expects to launch international long-haul operations by late 2008,” it said.
Virgin’s moves to push ahead with its US plans will come as a blow to Singapore Airlines, which had hoped to capitalise on a takeover of Qantas by private equity firms to push its own aspirations to fly on the lucrative US route.
The federal Government cited a desire to see another Australian airline fly on the route as a major reason for denying Singapore access to the route earlier this year.
It has reiterated that view as recently as this week.
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Virgin Blue has a number of pilots who are waiting to see what the "deal" will be for international flying.
After seeing what the company offered for the latest domestic work agreement, I wouldn't expect anything better than a "Jetstar" package IMO. So if that suits you guys in the sandpit...WELCOME HOME!
After seeing what the company offered for the latest domestic work agreement, I wouldn't expect anything better than a "Jetstar" package IMO. So if that suits you guys in the sandpit...WELCOME HOME!
Package
I reckon it will need to be better than J*... rumour has it that a couple of the expats re-imported for J* have already made career/pay advancing alternative arrangements and left. Perhaps it's a sign that 'market forces' are indeed coming to the fore?
Good luck to those with aspirations, and I hope the company will be fair & reasonable in making opportunities accessible to current loyal employees.
Good luck to those with aspirations, and I hope the company will be fair & reasonable in making opportunities accessible to current loyal employees.
Last edited by Jetsbest; 5th Jan 2007 at 09:47.
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One of my friends who has returned from the Desert was so impressed that he has been looking for commuting contracts within weeks of starting. He says it is unsustainable and has been an eye opener for the way things are done. Looks like a great place for the Jetstar boys to get a widebody command, some experience and then move on.....
