UK TO SYD - Virgin Atlantic and offspring tighten bonds
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December 8, 2004 Australian budget airline Virgin Blue and
international carrier Virgin Atlantic - both owned by British
billionaire Sir Richard Branson - have formed a code-sharing
agreement.
Virgin Atlantic, which has launched its inaugural flight between
London and Sydney, said the code-sharing arrangement would mean a
single Virgin Atlantic code for passengers flying on both airlines to,
from and within Australia on the designated services.
The agreement will start in April.
The agreement will initially be for passengers travelling to and from
London via Hong Kong to Sydney with a code-share service operated by
Virgin Blue to Brisbane, Coolangatta and Melbourne. Plans are under
way to expand the agreement to other ports.
Virgin Atlantic will use Airbus A340-600 aircraft on the London to
Sydney route, which will take 22 hours 40 minutes, including a
90-minute Hong Kong stopover. It plans to use the 555-seat Airbus A380
aircraft on the route when it is delivered in 2007.
Virgin Atlantic "is cost-competitive and very attractive in
marketing", said Jim Eckes, managing director of Indoswiss Aviation,
which provides advisory services for the industry.
"They are going to have an impact on traffic of the other carriers."
The so-called "kangaroo route" to Australia from the UK is one of the
most profitable routes for British Airways and Qantas, according to
UBS analyst Tim Ross. Hong Kong's Cathay Pacific also operates the
service.
The additional service was likely to trigger a "price war" between the
airlines, as Virgin Atlantic's rivals were expected to cut air fares
to attract travellers, Sir Richard said. "Finally, British Airways and
Qantas will have competition on the London-Hong Kong-Sydney route," he
said in a television interview in Hong Kong.
"Inevitably there will be a price war."
Virgin Atlantic was aiming to cover the costs on its new route within
a year, Sir Richard said.
The airline expected to be able to carry as many as 300,000 passengers
on the route a year, using the A340 aircraft. AAP and Bloomberg ###
international carrier Virgin Atlantic - both owned by British
billionaire Sir Richard Branson - have formed a code-sharing
agreement.
Virgin Atlantic, which has launched its inaugural flight between
London and Sydney, said the code-sharing arrangement would mean a
single Virgin Atlantic code for passengers flying on both airlines to,
from and within Australia on the designated services.
The agreement will start in April.
The agreement will initially be for passengers travelling to and from
London via Hong Kong to Sydney with a code-share service operated by
Virgin Blue to Brisbane, Coolangatta and Melbourne. Plans are under
way to expand the agreement to other ports.
Virgin Atlantic will use Airbus A340-600 aircraft on the London to
Sydney route, which will take 22 hours 40 minutes, including a
90-minute Hong Kong stopover. It plans to use the 555-seat Airbus A380
aircraft on the route when it is delivered in 2007.
Virgin Atlantic "is cost-competitive and very attractive in
marketing", said Jim Eckes, managing director of Indoswiss Aviation,
which provides advisory services for the industry.
"They are going to have an impact on traffic of the other carriers."
The so-called "kangaroo route" to Australia from the UK is one of the
most profitable routes for British Airways and Qantas, according to
UBS analyst Tim Ross. Hong Kong's Cathay Pacific also operates the
service.
The additional service was likely to trigger a "price war" between the
airlines, as Virgin Atlantic's rivals were expected to cut air fares
to attract travellers, Sir Richard said. "Finally, British Airways and
Qantas will have competition on the London-Hong Kong-Sydney route," he
said in a television interview in Hong Kong.
"Inevitably there will be a price war."
Virgin Atlantic was aiming to cover the costs on its new route within
a year, Sir Richard said.
The airline expected to be able to carry as many as 300,000 passengers
on the route a year, using the A340 aircraft. AAP and Bloomberg ###