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Virgin Blue is closer to picking up Ansett's mantle as Australia's number
two air carrier after moving into the former Ansett terminal at Sydney Airport
yesterday.
The airline's red livery has finally replaced Ansett's blue at all of the
main domestic airports, and the company is reviewing its international options,
with New Zealand high on the list.
Virgin Blue yesterday held talks with airport officials about gaining access
to more space in addition to its six dedicated gates and three shared ones. It
said it may also need to talk to Qantas about using some of its gates at the
terminal.
The discount carrier is to take delivery of four more planes in the first
three months of 2003, three of which will service extra routes out of Sydney.
A spokesman for the airport said the airline had not made a formal approach
for additional space, although next week it will be laying over aircraft near
the old express terminal, which will allow easy access over the next week.
The discount carrier now has the business market firmly in its sights.
``We're now not just a budget airline," the head of Virgin Blue, Brett
Godfrey, said of the broader market now targeted by his group. He said the
airline also hoped to introduce a frequent flyer program. Commanding as much as
a third of the traffic on the main trunk routes such as Sydney-Melbourne and
Sydney-Brisbane, and about 22-23 per cent of the total airline market, Virgin
Blue is planning to roll-out new programs such as frequent flyer schemes,
lounges and valet parking next year.
Mr Godfrey conceded Virgin Blue would be paying more to use the terminal.
But, he said, this should be more than offset by increased access to the
corporate market, which it hopes will now follow.
The one threat on the horizon for Virgin Blue is the cost of additional
security measures disclosed on Wednesday by the Federal Government, which will
have to be passed on to the travelling public, Mr Godfrey said.
Privately, airline officials believe the extra security measures could cost
as much as $300 million, far more than the $180 million forecast by the
Government.
The $5 Ansett levy, for example, is only likely to raise a little over $100
million in a full year.
``If the Government is expecting the industry ... to foot the first $180
million over the first two years, you can rest assured we can't afford to do
that," Mr Godfrey said.
``Unfortunately it's going to be the consumer that foots the bill."
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