VIRGIN BLUE WELCOMES INCREASED COMPETITION

Virgin Blue has today welcomed the news that some Ansett planes and staff will soon be back in Australian skies in the form of Ansett Mark II, following two weeks of intense uncertainty for staff and domestic travellers.

Australia's only low fare carrier is extending its best wishes to Ansett Mark II and its re-instated staff and looks forward to increased aviation competition.

Ansett Mark II will only be taking on a small percentage of the 16,000 Ansett staff members who lost their jobs and Virgin Blue has confirmed it will continue to welcome applications from any former Ansett staff members who are keen to contribute to Virgin Blue's vision of providing affordable air travel for all Australians.

Virgin Blue is gearing up to take delivery of up to five brand new Boeing 737 Next Generation aircraft by the end of this year, and is also in discussions with various parties, including the Ansett administrator, to source additional aircraft.

These extra aircraft will be used to increase capacity on existing Virgin Blue routes as well as launching new services to both capital city and regional destinations.

Virgin Blue will be looking for the best crew to operate the best aircraft in the country.

Interested Ansett team members can express their interest by logging on to Virgin Blue's website (www.virginblue.com.au) and registering their details within the special Ansett staff member page. Virgin Blue is happy to have been able to provide more than 25,000 Ansett ticket holders with discounted and free seats and will continue to offer the special Ansett discounts on the routes that Ansett Mark II will not fly until October 31.

On routes such as Sydney-Melbourne, where Ansett Mark II will be flying, Virgin Blue assumes the revived airline will look after its passengers on routes it operates.

Virgin Blue Chief Executive, Brett Godfrey said "We are delighted to have increased competition once again in the domestic market but at the same time, we have reservations regarding the guarantee to refund tickets if Ansett Mark II fails."

He continued, "When Virgin Blue launched in the market, there was no guarantee that we would succeed but we took that risk and so did our team members and Guests. We don't think its 100% fair that new passengers are guaranteed their money when so many other people have lost theirs. We urge Ansett Mark II to look out for those who are already out of pocket before reselling the same seats and effectively double dipping at the expense of previously booked passengers".

Virgin Blue has reconfirmed its commitment to its long-term low fare strategy and will continue to compete fairly and enthusiastically. Brett Godfrey continued, "All we expect is a level playing field in the Australian skies and the ability for all airlines to be treated equally. We applaud the return of a third carrier but we also expect all airlines to operate independently and viably and in the best interest of the Australian travelling public."

Virgin Blue operates the most modern, technologically advanced aircraft in Australia today, with an average age of less than 5 years, compared with Ansett's average fleet age of 11.7 years and Qantas with an average fleet age of 10.8 years. (Salomon Smith Barney 2001 Fleet handbook)