VIRGIN BLUE ANNOUNCES TAKE-OFF TALLY

Virgin Blue has exceeded its own expectations, carrying in excess of 85,000 passengers in its first 50 days of operation.

Since it began flying in Australian skies on August 31, the airline has recorded an average load factor of more than 75 percent, comfortably surpassing both revenue and load factor projections, Chief Executive Officer, Brett Godfrey, attributes the success to a combination of unique and exceptional service offered by the airline’s dynamic and customer focused frontline team and increased Olympic traffic even though Virgin Blue was ‘not the official low fare carrier’ for the Sydney 2000 Games.

“We were hoping to be at least half full, but we were happily way off the mark. As far as we know, this is a world record result – we are not aware of a new airline anywhere with load factors in the 70’s during their first few weeks”, he said.

He continued, “It proves our theory that the Australian market was crying out for competition and that travellers are happy to support an airline that has introduced ‘flair and real low fares’ to air travel. Needless to say, in light of the demand for our product, we are certainly pleased with our choice of 737-400 as a smaller aircraft simply wouldn’t be sufficient.”

The product has been well received through all major distribution channels.

Virgin Blue’s popular website, www.virginblue.com.au , recorded over 300,000 individual visits during the launch period.

Additionally, travel agent bookings are also growing steadily, doubling between September and October, with many recognising that the previous duopoly was limiting their growth potential.

Meanwhile, in the spirit of the holiday season, Virgin Blue has confirmed its commitment to continue offering low fares during the busy Christmas period.

Since last November’s announcement that Virgin would launch an airline in Australia, the carrier has honoured Richard Branson’s promise to provide half the seats on a Sydney-Brisbane flight for under $100 and half the Melbourne-Brisbane seats at $139 or less.

Virgin Blue will continue to uphold this promise until 31 December, despite GST, escalating fuel costs and the current lifetime low of the Australian dollar.

From January 1, 2001 Virgin Blue will still maintain the goal of having a far greater proportion of affordable seats in the market than its competitors.

Head of Finance, Manny Gill, said “Considering it’s coming up to December and many of our passengers will be eager to travel during the festive season, Virgin Blue believes introducing a price hike on the lowest fares would be flying in the face of the Christmas spirit”.

The airline will focus the increase only on its “Fully Flexible” (walk-up) fares, which will rise by $10 to $169 (6.3%) on the Brisbane-Sydney route and $20 to $269 (8%) on the Brisbane-Melbourne route, while continuing to offer its discount “Fair Fares” from $99 and $139 respectively.

The new fare structure with the increased walk-up fares will come into effect from 1 November, allowing the public the remainder of this week to make their bookings.

Manny Gill continued, “While Virgin Blue is wearing much of the cost of the falling dollar and record high fuel prices, we didn’t think it would be right to ambush the public with an increase without fair warning. As a result, the increase in walk-up fares will come into effect from 1 November, allowing the public more time to lock in low fare flexible business travel fares for 2001.”

Virgin Blue hopes increased operating costs will be offset by Australians choosing to holiday domestically, where a dollar is worth a dollar.

The airline currently operates seven daily return flights between Brisbane and Sydney as well as three daily returns between Brisbane and Melbourne.

Virgin Blue has also announced a twice daily return service between Brisbane and Adelaide to start before February 1, 2001 and will announce further growth plans in coming months.

Virgin Blue’s fleet has an average age of less than six years, younger than either of the major airlines, and Virgin Blue will soon operate the youngest fleet in the world when it takes delivery from Boeing of 10 brand new Next Generation 737’s from April next year.