Virgin Australia Bullish On Capacity Adds Amid Qantas Woes
19 Oktober 2011 - 6:35AM
Dow Jones News
Virgin Australia Ltd. (VBA.AU) said Wednesday it would add extra
flying capacity over the coming months as it snaps up disgruntled
passengers affected by strike action against rival Qantas Airways
Ltd. (QAN.AU).
Australia's second biggest carrier, which is having no problems
with trade unions, said that over the past three months it has
added over 31,000 seats each week in Australia's domestic flights
market.
"In addition to this, we have already put plans in place to add
extra capacity over the next few weeks," Chief Executive John
Borghetti said in a statement. These include adding 3,000 seats
each week up to Oct. 30 and the addition of a fifth daily return
service from Melbourne to Perth from Dec. 20.
"We are also closely monitoring the Queensland market to ensure
we can meet any additional capacity needs as this important tourism
market rebuilds after the devastating floods and cyclones,"
Borghetti said.
Virgin Australia's moves are in stark contrast to those by
Qantas, which in recent days has grounded seven aircraft due to
overtime bans by engineers.
Borghetti confirmed last week that Virgin Australia was flying
extra hours to accommodate travelers affected by the strikes and
would bring into service a new 737 aircraft three weeks ahead of
schedule.
His rival's woes couldn't have come at a better time. The former
senior Qantas executive is overhauling Virgin's Australia's
offering to better tap Australia's lucrative business class market.
He's just started putting business class seats on the company's
jets for the first time. He's also forged international alliances
with the likes of Singapore Airlines, Delta Air Lines, Etihad and
Air New Zealand.
"We are well advanced in discussions with alliance partners
Etihad Airways and Air New Zealand on providing extra capacity from
November, leading into the busy December and January holiday
period," Borghetti said.
At 0405 GMT, Virgin Australia shares were up 2.9% at 35.5 cents,
continuing their outperformance since the strikes against Qantas
began in August.
-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692;
Ross.Kelly@dowjones.com
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