Virgin Blue to remain in Sydney Domestic Express Terminal

Virgin Blue announced today it will remain in the Sydney Domestic Express Terminal (DET) and upgrade the existing facilities to ensure continued low fares for its Guests.

Australia's low fare airline has decided that expanding and revamping the existing terminal facility is the only sensible option available, as Sydney airport's new owners fail to honour an agreement reached by the two parties in April this year.

Virgin Blue's Chief Executive, Brett Godfrey said, "Gates at the former Ansett terminal appear to be grossly overpriced and are hamstrung by expensive big airline dinosaur technology that is incompatible with Virgin Blue's efficient, modern, low cost systems. We have been left with no choice but to remain in and revamp our current facilities. The only alternative is to increase airfares to pay the exorbitant rents being demanded by the controlling shareholder of Sydney airport, Macquarie Bank."

The airline is moving immediately to upgrade, expand and improve facilities at the Domestic Express Terminal.

Patrick Corporation CEO Chris Corrigan said, "As a 50% shareholder in Virgin Blue we will not allow the new owners of Sydney Airport, Macquarie Bank to extort ridiculous charges from the travelling public. Macquarie paid far too much for the airport and have since reneged on an agreement with Virgin Blue for cost efficient and reasonable access to the terminal."

"Macquarie is simply trying to gouge the travelling public but we will not become toll collectors for the bank.

We have tried to reach sensible arrangements that would work for everyone but Macquarie Bank's airport managers have refused to compromise" Mr Corrigan said.

Brett Godfrey said, "We are confident that with expanded and upgraded facilities we can continue to offer the lowest possible fares without compromising our first rate service."

In addition, it will free up space for all the new airlines SACL expects to fill the vacant former Ansett facility.

"There were some who speculated that Virgin Blue was trying to tie up the Ansett terminal to block competition. This proves we are all for competition but we are against inefficiency and we are against raising fares for Australians", he finished.

Virgin Blue is fully prepared to provide the funding for the Domestic Express Terminal expansion and upgrade.