Virgin Blue

Virgin Blue
IATA
DJ
ICAO
VOZ
Callsign
VIRGIN N1
Founded 2000
Hubs Brisbane Airport
Secondary hubs
Focus cities
  • Adelaide Airport
  • Canberra International Airport
  • Gold Coast Airport
  • Hobart International Airport
  • Perth Airport
  • Townsville Airport
Frequent-flyer program Velocity Rewards
Member lounge The Lounge
(formerly Blue Room)
Fleet size 75[1] (+89 orders)
Destinations 31
Company slogan Now there's an idea
Parent company Virgin Blue Holdings Limited
Headquarters Bowen Hills, Brisbane, Queensland, Australia
Key people
Website www.virginblue.com.au

Virgin Blue is Australia's second-largest airline[2] as well as the largest by fleet size to utilise the Virgin brand. The airline serves 28 cities and towns in Australia, with Brisbane Airport as its hub, using a fleet of 75 narrow-body Boeings and Embraers. It was founded by British businessman Sir Richard Branson's Virgin Group and is based in Bowen Hills, Brisbane, Queensland, Australia.

Contents

History

Virgin Blue's 50th Boeing 737 'Virgin-ia Blue' is the only blue aircraft in the fleet

Virgin Blue was launched on 31 August 2000, with two Boeing 737-400 aircraft leased from then-sister airline Virgin Express. Initially offering seven return flights a day between Brisbane and Sydney, this has since been expanded to cover all major Australian cities and many holiday destinations.

The timing of Virgin Blue's entry into the Australian market was fortunate as it was able to fill the vacuum created by the failure of Ansett Australia in September 2001. Ansett's failure allowed Virgin Blue to grow rapidly to become Australia's second domestic carrier, rather than just a cut-price alternative to the established players. It also gave them access to terminal space without which growth would have been significantly limited. Delays in negotiating access to the former Ansett terminal at Sydney Airport however forced Virgin Blue to use their original terminal there longer than was needed. As the airline grew, it acquired new equipment, enabling it to phase-out its older 737-400s in favour of 737-700 and -800 series aircraft with modern glass cockpits, winglets and greater fuel efficiency.

Virgin Group's holding in Virgin Blue has since been reduced, initially via a sale of a half interest to Australian logistics conglomerate Patrick Corporation, and later by a public float. In early 2005 Patrick launched a hostile takeover for Virgin Blue. Patrick had been unhappy for some time with the company's direction. By the closure of the offer, Patrick held 62% of the company, giving it control. Virgin Group retains a 25% share. In May 2006 Toll Holdings acquired Patrick and became the majority owner of Virgin Blue. In July 2008 Toll sold its majority holding via a special dividend and now holds 1.7% of the company.

Virgin Blue Boeing 737

Virgin Blue uses a familiar formula pioneered by airlines such as Southwest Airlines and Ryanair eliminating costs such as included in-flight meals and printed tickets in favour of selling food on-board and using telephone and internet booking systems. It also cut costs in the past by limiting the number of airports serviced and by operating one type of aircraft, the Boeing 737. This strategy has now changed with the introduction of a second type into the fleet. The airline has ordered 20 Embraer E-jets, in a mix of six E170s and 14 E190s, with the intent of taking as many as another 20 aircraft.[3] These were ordered specifically so that the airline could re-enter the Sydney–Canberra market that it abandoned in 2004, and to fly to less populous areas.[3][4] The first E-170 arrived in Australia in September 2007 and by the end of the year the three on initial order had been delivered. These were placed on limited-frequency services before full-scale operations were launched on 4 February 2008 with services from Sydney to Canberra (branded as 'Capital Jet' services),[3] Mackay in Queensland, and the New South Wales regional centres of Port Macquarie and Albury, which were promoted with a one-cent fare.[5][6] The flights to Canberra and the regional centres signify an effort to compete more directly with Qantas and its subsidiary QantasLink operation, which flies to all three cities, with independent Regional Express Airlines.[3]

At its inception in 2000, Virgin Blue did not have interline or marketing alliances with other airlines. However, after the collapse of its domestic competitor Ansett, it began a codeshare agreement with United Airlines. This allowed United customers to fly from America to any of Virgin Blue's Australian destinations that United did not already serve. In 2006, in an effort to compete with Qantas, Virgin Blue started exploring these relationships, forming frequent flyer agreements with Emirates Airline, Hawaiian Airlines and Malaysia Airlines. Virgin Blue also has an Interline Agreement with Regional Express Airlines for travellers to and from smaller regional centres. In November 2007, the airline announced an interline deal with international carrier Garuda Indonesia, offering easy transfer from a domestic Virgin Blue flight to an international Garuda service departing from Perth, Melbourne, Sydney or Darwin.[7] Since then Virgin Blue has also announced an interline agreement with Vietnam Airlines which allows passengers to fly from Melbourne and Sydney to Ho Chi Minh City, then transfer easily to any of the 44 international and 19 domestic destinations served by Vietnam Airlines.[8]

In 2008, Premium Economy Class was introduced throughout its entire fleet. New seating was installed in the first three rows of the cabin. These could be converted from three seats in Economy configuration to two seats for Premium Economy. The premium product offers priority check-in, larger baggage allowance, lounge access, priority boarding, increased legroom and all-inclusive in flight entertainment and meals/beverages on board. The product is aimed at business and corporate customers.

The airline began charging for checked baggage for Economy Class in September 2008.

Virgin Blue's name was the result of an open competition; it is a play on the predominantly red livery and the Australian slang tradition of calling a red-headed male 'Blue' or 'Bluey'.[9]

On Friday, 7th May 2010, Brett Godfrey officially stepped down as Virgin Blue CEO after steering the company through its first ten years.[10] Replacement CEO (and former Qantas senior executive) John Borghetti took over as Virgin Blue new Chief Executive.[11]

Pacific Blue

In September 2003, Virgin Blue announced that its wholly-owned subsidiary Pacific Blue would offer a low-cost service between New Zealand and Australia. Pacific Blue aimed to position itself as a low-cost competitor to Air New Zealand and Qantas on trans-Tasman routes.

V Australia

In early 2006, Virgin Blue's parent company announced its intention to operate up to seven flights a week to the United States using either Los Angeles International Airport or San Francisco International Airport, saying that the route was needed to make the airline as profitable as possible. On 25 July 2007, it was announced that "V Australia" would be the name of the new carrier.[12]

Head office

Virgin Village, the Virgin Blue head office in Bowen Hills, Brisbane

Virgin Blue has its head office in Virgin Village in Bowen Hills, Brisbane. As of 2008 1,000 employees work at Virgin Village.[13] The building, with about 13,220 square metres (142,300 sq ft) A-Grade office space, was triple net leased to Virgin Blue.[14]

As the airline started operations, it decided to place its head office in the Brisbane area. Brett Godfrey, the original chief executive of Virgin Blue, said in 2006 that the decision "was a long considered one and has worked well."[15] The airline originally had its head office in Fortitude Valley, Brisbane. The airline purchased a $61 million site in Bowen Hills for its new head office. The firm Sunland Group, which had acquired the Bowen Hills site for $8 million in 2005, had scheduled to complete the new head office in March, and the airline would be ready to move into the new head office by August of the following year.[16] The current head office facility, Virgin Village, formally opened on 17 October 2008.[17]

Marketing and sponsorship

Virgin Blue's "Rabbitohs" Boeing 737 'Bondi Babe' at Sydney Airport
Virgin Blue Boeing 737 with special scheme to advertise the Australian DVD release of the movie Avatar

On 8 February 2007, it was announced that Virgin Blue had signed a two year sponsorship deal with NRL team the South Sydney Rabbitohs. The Rabbitohs are the first rugby league team Virgin Blue has sponsored.[18] Boeing 737-800 VH-VUA has slight changes to its livery to commemorate this sponsorship. The Australian flag held by the 'Virgin Girl' is replaced with the Rabbitohs flag.

For the 2008 Super 14 season, Virgin Blue was the sleeve sponsor for the Queensland Reds.

Virgin Blue is also the official sponsor of the Australian National Basketball League (NBL), and the title sponsor of NBL team the Brisbane Bullets.

Virgin Blue gained extra revenue (and publicity) by painting two aircraft as "flying billboards". One promoted a brand of men's razor, the other a Queensland Government campaign to attract businesses to Queensland.[19] Both aircraft have since been withdrawn from the Virgin Blue fleet.

In 2007 Virgin Blue introduced an advertising campaign with the slogan "Get What You Want". The television commercials used in the campaign featured a song of the same name by Queensland band Operator Please.

In 2009, Virgin Blue introduced an all new advertising campaign entitled "Now there's an idea". TV Commercials showing comparisons between flying in Australia in 1999 as opposed to 2009 were screened, to the tune of one of The Cat Empire songs. New billboard advertising was launched, showcasing Virgin Blue's variety of products and on-time performance records.

In 2010, it was announced that Virgin Blue entered into talks with American Delta Air Lines to discuss joining SkyTeam, one of the top three alliances in the world. Delta Air Lines already codeshares with V Australia.

Destinations

Fleet

As of August 2010 the Virgin Blue fleet consists of the following aircraft:[1][20]

Virgin Blue Fleet
Aircraft Total Orders/Options/
Purchase rights
Passengers
(PRESENT)
Passengers
(no Premium Economy)
Notes
Airbus A330-200 0 2/0/0 Unknown Unknown 2011 Delivery [21]
Boeing 737-700 21 0/0/0 12 Premium Economy,
and 126 Economy
144 (total) Premium Economy convertible
(6 seats used as centre table)
Boeing 737-800 33 84/25/30 12 Premium Economy,
and 162 Economy
180 (total) Premium Economy convertible
(6 seats used as centre table)
Embraer E-170 6 0/0/0 12 Premium Economy,
and 66 Economy
78 (total) Premium Economy convertible (no table);
to be phased out[21]
Embraer E-190 15 3/0/0 12 Premium Economy,
and 92 Economy
104 (total) Premium Economy convertible
(no table)
'Irresista-blue', Virgin Blue's third E170 at Sydney Airport

Initially Virgin Blue leased its aircraft but many recent additions to the fleet have been purchased outright. In June 2006, Virgin Blue placed an order for nine Boeing 737-800s, due to be delivered in 2008.[22] Virgin Blue-owned Boeing 737s are indicated by the Boeing customer code FE in the model suffix.

In November 2006, Virgin Blue announced plans to purchase 11 Embraer E190 and three Embraer E170 aircraft with options for six more E-jets. These later became orders for an additional three E170s and three E190s.[23] In February 2008 a further four E190s were ordered, leaving six options and ten purchase rights.[24]

Virgin Blue received its first Embraer 170 in early September 2007 at a special ceremony at the Embraer plant in Sao Jose dos Campos.[25] The ERJ-170s have introduced a revised logo on their tails, bringing the Virgin Blue brand into line with the logos of other Virgin-branded companies.[3]

Some of Virgin Blue's Boeing 737-800s, such as 'Madelaide' (pictured), are painted in Pacific Blue colours

Like Virgin Atlantic, Virgin Blue gives the aircraft in its fleet names, often incorporating female names and words connected with Australian cities and localities or other quintessentially Australian themes. Names on Virgin Blue aircraft include 'Brissie Lizzie' ("Brissie" being an Australian slang name for Brisbane, and "Lizzie" being slang for Elizabeth), 'Sassy Sydney' (Sydney is a female name as well as the name of Australia's largest city), 'Prue Blue' (incorporating the name Prudence and also a pun on the Australian phrase "true blue", meaning "patriotic"), 'Tassie Tigress' (incorporating both the slang name for Tasmania and the common name for the Thylacine) and 'Mackay-be Diva' (a pun on the city of Mackay, Queensland and Makybe Diva, a famous Australian racehorse). Each aircraft in the Virgin Blue colours (some are painted in Pacific Blue colours for cross-promotional reasons) also features a "virgin girl" as nose art, complete with a wide-brimmed Aussie hat, trailing an Australian flag.

On 24 October 2007, Virgin Blue announced the introduction of Premium Economy on all domestic flights. As the E-jets already have four-abreast seating, the number of seats on these aircraft remained unchanged after the rollout of Premium Economy.[26]

An agreement was signed with Boeing on 1 April 2010 for an order of fifty firm Boeing 737-800 aircraft, with flexibility to convert to either Boeing 737-700 or Boeing 737-900ER, as well as 25 additional options and 30 future purchase rights. Delivery is scheduled from June 2011 through to 2017.[20] The new aircraft are expected to replace Virgin Blue’s existing narrow body fleet, while the remainder will be deployed to new routes and boost frequency according to demand.[20]

Services

Food and beverages

Virgin Blue offers a fully inclusive food and beverage service for its Premium Economy Class.

Economy Class offers a buy on board service with food and drinks for purchase.[27][28]

Live2Air

In December 2006, Virgin Blue announced a partnership between Australian cable television providers Foxtel and Austar, to introduce a "Live2Air"[29] service on all flights by mid 2007. The Live2Air system is only available on Boeing 737 aircraft. The Embraer 170 and 190 fleet is not equipped with the service. Virgin Blue was the first carrier outside North America to introduce multi-channel real-time satellite TV to its flights. Live2Air is free of charge on Premium Economy, while on Economy Classthe Live2Air system costs $4.90 on flights under 2 hours, and $9.90 on flights over 2 hours if paying via credit card. If paying by cash the system cost $5.00 and $10.00 respectively. The system is available free of charge for all passengers until approximately 10 minutes after takeoff. After this period, the passenger must swipe their credit card to continue viewing.

An advertising channel and a flight track channel are free of charge for both classes throughout the flight.

The Lounge

Virgin Blue's The Lounge

History To capture a share of the business traveller market, Virgin Blue decided to provide a members lounge facility for travellers. Originally this was called The Blue Room and provided facilities to members and guests on a pay-as-you-go basis. Many of these facilities became available when Virgin Blue relocated into the former Ansett terminals across the country, with the defunct Golden Wing club lounges left behind being utilised as Blue Room lounges, complete with furnishings.

In 2006, Virgin Blue revamped the Blue Room lounge facilities and re-launched it as The Lounge, which offers all-inclusive facilities for a membership fee or casual fee basis. Upgraded facilities that are provided include buffet food and refreshments, newspapers, showers, computers, and WiFi internet access for travellers.

In 2008, Virgin announced that they would be relocating their Sydney Lounge to new larger premises. The new lounge occupies the lower level of the former Ansett Golden Wing Club lounge, centrally located between both Terminal 2 concourses. The original location of the Sydney Lounge, which was located in the former Ansett Executive Lounge on the first concourse, is now vacant.

The Lounge is open seven days a week from 45 minutes prior to the first departure until the last flight is called for boarding.

Lounge access

Members are permitted to enter "The Lounge" when flying on Virgin Blue or codeshare Pacific Blue, Polynesian Blue and V Australia services on the day of travel, along with one guest who need not be travelling. A Single entry pass is available subject to space at a cost of $35.00 AUD, payable at the time of entry, or $30.00 AUD pre-purchased online. Complimentary access is provided for Velocity Gold, Premium Economy and Corporate Plus members. International Business Class and International Premium Economy passengers on V Australia also gain complimentary lounge access.

Locations

Velocity Rewards

Velocity Rewards is Virgin Blue's frequent flyer programme

Virgin Blue launched its frequent-flyer program Velocity Rewards in 2005, with partner National Australia Bank offering a companion credit card. By 2007, points collected from selected Westpac, American Express and Diners Club Cards could be transferred to Velocity Rewards, and effective September 2008, ANZ Reward Visa Card points as well. Status levels were introduced to the program in late 2007 as part of continued efforts to attract business travelers. Alongside the entry-level "Red" status, frequent travelers can now attain "Silver" and "Gold" status, each with its own set of benefits.

Velocity is different from most other frequent flyer programs in two ways. First, points are earned relative to the cost of a flight, rather than the length. Velocity members originally earned 6 points per dollar spent on Virgin Blue flights. This has since been altered due to the introduction of status levels; Red members now earn 5 points per dollar, Silver members remain at 6 points, and Gold members earn 7. (Points on Virgin Blue's long-haul carrier V Australia, as well as the majority of Velocity's airline partners, are still earned per mile).

Second, Velocity was the first frequent flyer program in Australia to offer "any seat, any time" reward flight availability. The amount of points required to redeem an award seat directly corresponds to the current fare of that seat, allowing any seat currently available to be redeemed. Rival Qantas introduced a similar feature to their frequent flyer program in May 2008.

As of February 2008, Velocity Rewards had 1.3 million members and Virgin Blue stated it was considering selling it or entering into a joint venture once its operation was profitable, and considered a membership of 1.6 to 1.7 million members would put the operation in a break-even position.[31]

Awards for Service and controversies

Awards

Virgin Blue Boeing 737 with the "virgin girl" logo and the name 'Alluring Alice', a reference to Alice Springs

Virgin Blue Airlines has won a number of awards since its inception. The airline and certain of its employees won five 2009 Service Excellence Awards of the Customer Service Institute of Australia.[32] Since being named as Best Low-Cost Airline in the Asia/Pacific region in the Skytrax 2002 Airline of the Year Survey, the airline has also been voted best airline in a number of different categories and by a number of different organisations.[32]

The airline's Frequent Flyer program Velocity Rewards won the 2009 Freddie Awards, the largest award in the travel industry, for Best Frequent Flyer Program, Best Award Redemption, Best Affinity Credit Card, Best Member Communications, Best Website. This was the fourth consecutive Freddie Awards that Velocity has won.[33]

Controversies

Associated carriers

Footnotes

Notes

1. ^ Virgin Blue has a written agreement with Virgin Atlantic for Virgin Blue to use the "Virgin" callsign domestically in Australia. Outside Australia it cannot be used, so separate brands like Pacific Blue (callsign Bluebird for Pacific Blue NZ or Bluey for Pacific Blue International services operated by Virgin Blue) and joint venture Polynesian Blue have been created.

References
  1. 1.0 1.1 Australian civil aircraft register search using "Virgin Blue Airlines" as the search parameter. Search conducted 2010-08-26.
  2. Virgin Blue Profile - Low Cost Airline News
  3. 3.0 3.1 3.2 3.3 3.4 Sadler, Paul. "A Red Storm Rising", Australian Aviation magazine No 244, November 2007, p30-34. Phantom Media Pty. Ltd., Fyshwick ACT. ISSN 0813-0876
  4. "Ho Ho Ho - It's off to Albury we go!" - Virgin Blue Press Release retrieved 2008-01-22.
  5. Albury Launch with 1 Cent Fares!! retrieved 2008-02-05.
  6. Port Macquarie Launch with 1 Cent Fares!! retrieved 2008-02-05.
  7. MICEBTN website
  8. A “V” GOOD PARTNERSHIP - VIRGIN BLUE AND VIETNAM AIRLINES SIGN INTERLINE AGREEMENT
  9. Virgin Press Release, 5 February 2000
  10. "Bye Brett! Australia owes you a big thankyou - consumers, tourism industry and business alike". Centre for Asia Pacifc Aviation. 5/7/10. http://www.centreforaviation.com/news/2010/05/07/bye-brett-the-australian-aviation-sector-owes-you-a-big-thankyou--the-public-the-tourism-industry/page1. 
  11. Creedy, Steve. "Virgin chief starts at $3.5m: John Borghetti". The Wall Street Journal (The Australian). http://www.theaustralian.com.au/business/virgin-chief-starts-at-35m-john-borghetti/story-e6frg8zx-1225863821120. Retrieved 3 August 2010. 
  12. Virgin unveils transpacific airline - V Australia : thewest.com.au
  13. "Virgin Blue seeks shelter in Brisbane." The Australian. 17 October 2008. Retrieved on 8 February 2010.
  14. "Virgin Blue National Headquarters, Brisbane - new 12 year lease." Jones Lang La Salle. Retrieved on 9 February 2010.
  15. "Virgin Blue In State Of Excitement Over New Invest Queensland Campaign." Virgin Blue. Monday 6 March 2006. Retrieved on 8 February 2010.
  16. "Virgin Blue buys new Australian headquarters." The Age. 13 November 2008. Retrieved on 9 February 2010.
  17. "The Year That Was." 2009 Virgin Blue Annual Report. Retrieved on 8 February 2010.
  18. "Virgin Blue signs Sponsorship Deal with South Sydney Rabbitohs". ASIATravelTips.com. 8/2/07. http://www.asiatraveltips.com/news07/82-SydneyRabbitohs.shtml. 
  19. Airliners.net photos of Virgin Blue special paint scheme aircraft retrieved 2008-01-22.
  20. 20.0 20.1 20.2 "Australia's Virgin Blue to buy 105 new Boeing planes". BBC News Online. 1 April 2010. http://news.bbc.co.uk/2/hi/business/8598463.stm. Retrieved 1 April 2010. 
  21. 21.0 21.1 A330s, Etihad alliance for Virgin Blue as profit meets expectations, Australian Aviation online, retrieved 26 August 2010
  22. "Boeing and Virgin Blue Announce Order of Nine Next-Generation 737s" - Boeing Media Release retrieved 2008-01-22.
  23. Virgin Blue Orders Embraer E-Jet Aircraft (The Australian: 2 November 2006)
  24. "Embraer Receives New E-Jets Order From Virgin Blue" - Virgin Blue Media Release retrieved 17 October 2008.
  25. "Virgin Blue takes delivery of its first Embraer E-170 airliner" Flight Global, 04/09/07
  26. Virgin Blue > News and Press Releases
  27. Virgin Blue : January 2009, Page 1 Virgin Blue. Accessed 10 February 2009.
  28. "à la cart menu." Virgin Blue. Accessed 30 October 2008.
  29. Virgin Blue - Live 2 Air
  30. "VIRGIN BLUE TO OPEN NEW ‘THE LOUNGE’ AT PERTH AIRPORT" - Virgin Blue News and Press Release retrieved 2009-011-06.
  31. Creedy, Steve (21 February 2008). "Virgin loyalty program may be spun off". news.com.au. http://www.news.com.au/travel/story/0,26058,23250348-5014090,00.html. Retrieved 2008-02-21. 
  32. 32.0 32.1 Virgin Blue - Our Awards retrieved 2010-02-27
  33. "Velocity voted the world’s favourite rewards program!". velocityrewards.com.au. 16 February 2009. http://www.velocityrewards.com.au/content/AboutTheProgram/LatestNews/freddieawards/index.htm. Retrieved 2009-02-16. 
  34. Disabled man settles lawsuit with Virgin Blue
  35. Dunn, Mark (14 December 2006). "Banned for a George Bush T-shirt". News.com.au. http://www.news.com.au/story/0,23599,20925632-38200,00.html. Retrieved 2006-01-22. 
  36. Virgin Blue loses discrimination appeal
  37. The Age, Virgin Blue defends wheelchair policy
  38. http://www.hreoc.gov.au/media_releases/2006/33_06.htm
  39. Pelly, Michael (2 June 2006). "Virgin backs down in disability row". The Sydney Moring Herald. http://www.smh.com.au/articles/2006/06/01/1148956480935.html?from=rss. 
  40. [1]

External links