Bali to be priority in Virgin Blue's international expansion
Bali to be priority in Virgin Blue's international expansion
Associated Press, Canberra
Budget carrier Virgin Blue will make the troubled holiday
island of Bali a priority destination when it begins a major
expansion from Australian domestic routes into international
services soon, Virgin boss Richard Branson said Sunday.
He noted he wanted the carrier, which has carved out a strong
niche in Australia's budget air-travel market since it started
two years ago, to help restore the Indonesian island's shattered
tourist industry following last month's bomb attack.
"I think it is very sad to see that it is now empty of
tourists and yet it is just as likely that a bomber could strike
anywhere in the world," Branson told Sky News.
Just a four-hour flight from some Australian cities, Bali has
been a popular holiday destination with Australians for almost
three decades. But the tropical island's tourism industry has
withered since a car bomb tore through a nightclub packed with
foreign tourists Oct. 12. Almost 90 Australians died in the
attack, which killed more than 180 people.
Branson also said that after only two years of operation,
Virgin Blue's revenues could top 100 million Australian dollars
this year. He said the discount carrier would soon place an order
for up to 40 new jets over the long term.
"There is still an awful long way to grow, not just internally
within Australia, but we have pinpointed about 18 overseas
destinations where airfares are very high where we can go as
well," he said.
Branson's comments come after the carrier last week won a
monthslong struggle to increase its access to landing slots at
Sydney Airport, positioning it for further expansion.
Branson said the airline would "most likely" announce an order
for 30 to 40 new jets in the next four to five weeks and increase
its push to gain a larger share of travelers from Australian flag
carrier Qantas, which commands about 80 percent of the domestic
market.
Branson said he would also lodge a challenge with Australia's
antitrust watchdog, the Australian Competition and Consumer
Commission, against a joint-services agreement between Qantas
Airways Ltd. and British Airways PLC.
Under the agreement, the two airlines work out schedules,
agree on fares and share passengers and profits on the lucrative
Australia-London route, which includes services to Asia and
Europe.
"We are certainly putting in a submission to the commission
authority to say that in the interests of the consumer and of
competition they should be competing, not colluding," Branson
said.