Virgin Australia $67.8m full year loss

Virgin Australia has just released its results for the 12 months to 30 Jun, with the net result after tax being a $67.8 million loss.

CEO John Borghetti said it had been a year of "enormous challenge and significant change as we began repositioning the company to ensure a more stable financial future".

He said the figures reflect the impact of an "unprecedented series of external events" and reinforce the importance of the ongoing Game Change Program strategy.

Total revenue was up 9.7% to $3.27 billion, and Borghetti said the airline was beginning to reap the benefits of the changes, with corporate and government revenues up a healthy 29% year on year. Borghetti said this segment now makes up 13% of the airline's total revenue.

"We expect to see further gains in the 2012 financial year as we complete the roll-out of our new product offering," he said.

As well as natural disasters the result was hit by high fuel prices and the failure of the Navitaire system in Oct 2010.

Borghetti said Virgin Australia was firmly committed to its revamp, with the ongoing expansion of its alliance network set to see the Delta Air Lines pact launch by the end of the year - by which time DJ is also expecting a decision on its proposed agreement with Singapore Airlines.

He also announced the first stage of a revamped Velocity loyalty program, which will offer a "global network of 600 services internationally, simplified earn and burn structrues, innovative rewards for loyalty such as complimentary lounge passes and parental leave options, and importantly a new Platinum tier to provide unique benefits to our most frequent flyers".

Going forward, "we are confident we have the right strategy to manage our response to changes in future market conditions and to ensure a stable and successful future for Virgin Australia," Borghetti said.

More information in today's Travel Daily. www.traveldaily.com.au

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V AUSTRALIA INAUGURAL FLIGHT ARRIVES IN ABU DHABI

* V Australia commences service from Abu Dhabi to Sydney three times a week

* Provides direct access to Virgin Blue's extensive Australian domestic network and Pacific Blue's network in New Zealand, the Cook Islands, Fiji, Tonga and Vanuatu

* Customers benefit from fully reciprocal Etihad Guest and Velocity frequent flyer programs

Australia-based Virgin Blue Group of Airlines yesterday launched its inaugural V Australia flight to Abu Dhabi, becoming the first Australian carrier to operate to the Middle East in 20 years.

Arriving at Abu Dhabi International Airport at 11.40pm GST last night, the Sydney-Abu Dhabi service included Virgin Blue Group CEO and Managing Director John Borghetti and Etihad Airways CEO James Hogan, along with the Australian Ambassador to the United Arab Emirates, Mr Doug Trappett, and Virgin Blue Group's new ambassador and one of the world's most successful swimmers, Ian Thorpe, who has come to Abu Dhabi to continue training for the 2012 Olympic trials.

The V Australia and Etihad delegations were welcomed by Abu Dhabi Airports Company (ADAC) CEO, James E. Bennett and the Senior Vice President of Airports Operations at ADAC Ahmad Al Haddabi, along with senior representatives from the airport and the home carrier.

The new V Australia Abu Dhabi service is a key part of the partnership between Virgin Blue Group of Airlines and Etihad Airways which will see the airlines offer a total of 27 weekly services between Abu Dhabi and Australia – including double-daily services between Abu Dhabi and Sydney, daily Melbourne-Abu Dhabi flights and six frequencies per week between Abu Dhabi and Brisbane.

Virgin Blue CEO and Managing Director John Borghetti said that Australians were very excited about the new V Australia service and that the UAE would also benefit significantly.

"Since its launch in 2009, the award-winning V Australia service has provided a high-quality, competitive travel option for travellers on trans-pacific routes and we're very pleased to bring our service to Abu Dhabi," Mr Borghetti said.

"Etihad Airways has been doing a great job of promoting Abu Dhabi as a budding destination for Australian tourists and a stepping stone to Europe and beyond. Having a home-grown Australian airline offer services to the Middle East will build upon those efforts and help to increase the profile of the UAE in Australia.

"In addition to offering customers more flights to and from Australia, our partnership with Etihad Airways will provide access to Virgin Blue's extensive Australian domestic network and Pacific Blue's network in New Zealand, the Cook Islands, Fiji, Tonga and Vanuatu. This means that Etihad and V Australia guests will be able to earn frequent flyer points and status credits on our networks and receive reciprocal lounge and service benefits," Mr Borghetti said.

 

Etihad Airways Chief Executive Officer James Hogan said: "V Australia is the first Australian airline ever to serve the United Arab Emirates. That is no small matter, and is certainly a reflection of the growing strength and relevance of the Australia-UAE relationship.

"In partnering with Virgin Blue, Etihad is supporting the Government of Abu Dhabi's vision for the emirate by generating stronger inbound business and leisure traffic flows.

"Equally, the increased capacity into Australia will help us in achieving greater commercial scale, driving higher loads and yields on the African, European and Middle Eastern side of our network."

Abu Dhabi Airports Company (ADAC) Chief Executive Officer James E. Bennett stated: "ADAC is pleased to welcome V Australia to its airlines' portfolio as the first new addition for 2011 at Abu Dhabi International Airport.  V Australia is recognised for its high quality service, in line with the levels of service we promise our travellers at Abu Dhabi International Airport.

"We applaud this partnership between Etihad Airways and V Australia as it paves the way for further development, improving the offer of choice and convenience to our clients, not only to Australia, but to our whole network."

V Australia now operates three Sydney-Abu Dhabi services per week and will operate an additional three Brisbane-Abu Dhabi services per week by February 2012, using its new fleet of three-class economically and environmentally efficient Boeing 777-300ERs. VA29 flies from Sydney to Abu Dhabi on Tuesdays, Thursdays and Saturdays, departing at 4.05pm and VA30 flies from Abu Dhabi to Sydney on Mondays, Wednesdays and Fridays, departing at 10.45am.

Virgin Blue Group's partnership with Etihad Airways delivers a combined global network of more than 150 destinations worldwide. This partnership is a key part of Virgin Blue Group's plans to build an international network of airline partners that can provide global coverage along with frequent flyer earn and redemption capabilities to benefit guests.

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Virgin to add turbo prop fleet under alliance with Skywest

The Virgin Blue Group and Western Australia's Skywest Airlines have just
announced signing a new strategic alliance, which will see Skywest operate
a fleet of up to 18 new DJ branded turbo prop aircraft, leased from Avation
PLC.

The 10-year agreement will see the first DJ turbo prop come into service
mid this year (and another 3 by the end of 2011) and operate on new and
existing routes around the country.

"The combined strength of our networks, along with the additional capacity
we will deliver with new aircraft, will provide travellers with more
frequent flights, better schedules and competitive fares," said DJ ceo and
managing director, John Borghetti.

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VIRGIN GALACTIC'S SPACESHIPTWO ACHIEVES MAJOR MILESTONE

ONE STEP CLOSER TO BECOMING THE WORLD'S FIRST MANNED COMMERCIAL SPACE VEHICLE

VSS ENTERPRISE ACHIEVES MANNED FREE FLIGHT FROM OVER 45,000 FT (13,700 METRES) AND SUCCESSFULLY GLIDES TO LAND IN 11 MINUTES AT MOJAVE AIR AND SPACE PORT

10th October 2010, Mojave, CA. Virgin Galactic, the US company developing the world's first commercial manned space flight system and tourism business, is delighted to announce the successful completion today of the first piloted free flight of SpaceShipTwo, named the VSS Enterprise. The spaceship was released from its mothership at an altitude of 45,000 ft (13,700 metres).

During its first flight (visit www.virgingalactic.com to view images) the spaceship was piloted by Pete Siebold, assisted by Mike Alsbury as co-pilot. The two main goals of the flight were to carry out a clean release of the spaceship from its mothership and for the pilots to free fly and glide back and land at Mojave Air and Space Port in California.

Other detailed objectives of the flight were successfully completed, including; verification that all systems worked prior and following the clean release of Enterprise; initial evaluation of handling and stall characteristics; qualitative evaluation of stability and control of SS2 against predictions from design and simulation work; verification of performance by evaluating the lift-to-drag ratio of the spaceship during glide flight; practice a landing approach at altitude and finally descend and land.

Preparations for the milestone flight were extensive. The WhiteKnightTwo mothership (Eve) flew 40 times including 4 captive carry flights of spaceship and mothership mated together. The most recent captive carry was on Sept 30th. The most recent solo flight was on October 5th and demonstrated that all the systems required for a free flight by the VSS Enterprise were functioning correctly without any safety issues. Commenting on the successful flight Scaled Composites pilot, Pete Siebold, said “The VSS Enterprise was a real joy to fly, especially when one considers the fact that the vehicle has been designed not only to be a Mach 3.5 spaceship capable of going into space but also one of the worlds highest altitude gliders.”

Sir Richard Branson, founder of Virgin Group, who was present during the first successful flight, added “This was one of the most exciting days in the whole history of Virgin. For the first time since we seriously began the project in 2004, I watched the world’s first manned commercial spaceship landing on the runway at Mojave Air and Space Port and it was a great moment. Now, the sky is no longer the limit and we will begin the process of pushing beyond to the final frontier of space itself over the next year.”

Virgin Galactic is now well on the way to becoming the world's first commercial space line with 370 customer deposits totalling $50 million. Future commercial operations will be at Spaceport America in New Mexico where final preparations are taking place for a finished runway inauguration ceremony on Friday 22nd October 2010. National Geographic channel in the United States will be showing a documentary on the build up and preparation for the first flight of VSS Enterprise on Monday, 18th October at 10.00pm ET/PT.

George Whitesides, CEO of Virgin Galactic who was also present at the historic flight, added “To see the world’s first manned commercial spaceship landing on a runway is a sight I always dreamed I would behold. Now, our challenge going forward will be to complete our experimental program, obtain our FAA licence and safely bring the system into service at Spaceport America, New Mexico.”

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More Virgin Blue Cancellations as Systems Upgraded

Source: AAP

Virgin Blue cancelled 16 flights on Wednesday as it upgrades its systems to mend a computer glitch.

The airline's web and kiosk check-in services were suspended on Tuesday and are expected to be back on deck by Thursday.

Customers can't make new bookings or change or cancel an existing booking while the reservation system is offline.

Web check-in, Kiosk check-in and Check-mate are closed until 5am (AEDT) on Thursday.

A spokeswoman for the airline said it had announced the 16 flight cancellations on Saturday but a few people may still not know about them.

Virgin staff will be at airports to assist them, she said.

Passengers are being urged to check in for domestic flights two hours before scheduled departure time and three hours for international journeys.

An IT glitch last week sent the airline's computer system into meltdown.

Virgin Blue staff nationwide had to process check-ins by hand and flights were cancelled.

Thousands of passengers were delayed on Sunday and Monday last week and many were put up in hotels overnight.

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TD Breaking News - Virgin Blue/Delta alliance denied

No deal for Virgin Blue and Delta Air Lines alliance, for now.

The US Department of Transportation has "tentatively" turned down the proposed anti-trust immunity between Virgin Blue Group and Delta Air Lines on joint services between Australia and the United States.

The government department said that the planned alliance had not demonstrated that it would "produce sufficient public benefits to justify a grant of antitrust immunity."

In reaching its tentative decision, the DoT said that both Virgin and Delta were relatively new to the Australia-US market, had not shown developed plans to operate as commercial partners and had co-operation to only "a handful of routes", which limited the alliances public benefits.

It also said the tie-up had failed to provide what positive effects it would offer to the consumer, "such as lower fares or increased capacity."

Virgin and Delta have two weeks to provide the DoT with reasons as to why the preliminary decision should not be made final, with an outcome now due by the end of this month or early October.

More information as in today's Travel Daily.


Update:

The U.S. Department of Transportation (DOT) today issued a preliminary denial of Virgin Blue and Delta Air Lines' application for antitrust immunity in relation to their proposed joint venture on the Trans Pacific Route.

Both airlines will be working with DOT over the next 14 day period to respond to the concerns raised.

Virgin Blue strongly believes the proposed alliance with Delta will be good for consumers.

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Virgin Blue takes AVATAR to the skies

The highest grossing film of all time, AVATAR will be available on Blu-ray and DVD on April 29, 2010 in Australia.  To mark the release of the record breaking film, Twentieth Century Fox has aligned with Virgin Blue to fly AVATAR into the hands and homes of Australians nationwide.  

There are many strands to this strategic corporate partnership that aim to raise awareness of the release of AVATAR, led by a unique PR stunt, which is taking place on the day of the AVATAR DVD and Blu-Ray launch, 29 April 2010.  

This activity will reveal a Virgin Blue Boeing 737 transformed into an Avatar inspired jet. 20 lucky AVATAR enthusiasts who won competitions around the country will be the first to fly in the jet from Brisbane to Sydney. The winners will be accompanied by Virgin Blue Crew, Virgin Blue VIPs, 20th Century Fox VIPs and media.  

To ensure that the experience remains AVATAR inspired, the 20 competition winners and members of the Virgin Blue crew will be made-up prior to the flight to look like their very own Na'vi AVATAR for this once in a lifetime opportunity.  

Once the Virgin Blue Boeing 737 has landed in Sydney a unique photo shoot opportunity for media will take place with four Na'vi-inspired actors and the plane.

Kristen McGrath, Associate Director of Publicity and Promotions for Twentieth Century Fox Home Entertainment comments: "It seems only appropriate that the launch of the highest grossing film of all time in Australia should be marked with such a unique event. To partner with Virgin Blue, an airline that is renowned for pushing the boundaries, to recreate the amazing aesthetics of the film during the stunt only further reinforces the creativity of the film. The launch of AVATAR on DVD and Blu-ray allows fans to return to the world of Avatar in the comfort of their own home as the land of Pandora comes alive in their living rooms"

The strategic campaign between Virgin Blue and Twentieth Century Fox will also include:

   * In-flight promotions

Consumers who purchase the AVATAR Blu-ray DVD can redeem $50 towards a Virgin Blue 'Blue Holiday'

   * In-flight TV advertising

The partnership will be promoted to consumers with an in-flight commercial running on aircraft for one month on Virgin Blue's Voyeur channel.

   * Messaging on boarding passes
   * POS in  airports &  lounges

To reinforce the commitment to consumer engagement in the partnership, Virgin Blue is offering competition entrants the chance to win one of five exclusive VIP AVATAR Experiences in LA.  Details of the competition are at www.virginblue.com.au/avatar.

Heather Jeffery, Virgin Blue General Manager of PR & Communications comments: "We're very particular about who and what appears on the exterior of our aircraft, last year our Black Eyed Peas jet was hugely popular and this year we're thrilled to be part of the continuing excitement about AVATAR."

"This is a broad ranging promotional partnership and our team are having great fun with it.  Twentieth Century Fox's AVATAR is a ground-breaking film that pushes the boundaries and at Virgin, we can certainly relate to that."  

"This is the start of the partnership with the epic film as we offer our loyal Guests exclusive opportunities to engage and enjoy the movie."

The must-own AVATAR Blu-ray release provides the ultimate high definition experience ever for home viewing audiences.  Recognized for its optimum picture and sound, the film's masterful cinematography, art direction and visual effects lends itself to awe-inspiring clarity when viewed on Blu-ray Disc.

AVATAR Impact

*Since its global theatrical release last December, AVATAR has continued to make motion picture history. Written and directed by James Cameron and produced with his long-time collaborator Jon Landau, AVATAR stars Sam Worthington, Zoë Saldana, Sigourney Weaver, Stephen Lang, Michelle Rodriguez, Giovanni Ribisi, Joel David Moore, CCH Pounder, Wes Studi and Laz Alonso.

Oscar and Golden Globe® winning epic is the highest grossing film of all time, taking in over $2.7 billion (US) in worldwide box office with over $1.9 billion (US) derived from international markets. Director James Cameron takes audiences to a spectacular world beyond imagination, where a reluctant hero embarks on a journey of redemption and discovery as he leads a heroic battle to save a civilization.    

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VIRGIN BLUE AND V AUSTRALIA ANNOUNCE FREQUENT FLYER PARTNERSHIP WITH VIRGIN AMERICA

Virgin Blue Airlines and its' premium long-haul airline, V Australia announced today they have partnered with Virgin America to allow each airline's loyalty program members to earn points when taking flights on the sister-branded airlines. The partnership means that guests flying Virgin Blue, V Australia and Virgin America will all be able to earn credit for their flights that will be redeemable under either of the carrier's frequent flyer programs.

Effective from today, guests will be able to earn points on all of the carriers – and by the end of 2010, guests will be able to redeem points on any carrier*.

The reciprocal agreements enable Virgin Blue or V Australia's Velocity members to earn Velocity points; and Virgin America's Elevate members to earn Elevate points – wherever they are flying with one of the three airlines, V Australia, Virgin Blue or Virgin America**.

"The new agreement is another example of our Virgin airlines working closer together for the benefit of our Guests," said Virgin Blue Airlines Co-founder and Chief Executive Brett Godfrey.

"Our aim is to encourage more travellers from throughout the U.S. and from our part of the world to plan their trans-Pacific travel with our growing airline family."

With industry-leading guest service, beautiful design and a host of high-tech amenities, the Virgin Airlines are world renowned for outstanding customer service and product innovation.

Virgin Blue has received numerous awards in recent years, including Best National Airline three years running at the Australian National Travel Industry Awards. V Australia offers a three class trans-Pacific travel option and Virgin America offers Main Cabin, Main Cabin Select and First Class seating on its domestic U.S. service.

Virgin America has captured a list of travel industry best-in-class awards since its 2007 launch, including being named "Best Domestic Airline" in the Condé Nast Traveler 2009 Readers' Choice Awards and "Best Domestic Airline" in the Travel + Leisure 2009 World's Best Awards.

Virgin America President and Chief Executive Officer David Cush commented: "Travellers around the world seek out Virgin airlines for their unrivalled value, brilliant service and innovative amenities, and we're pleased to partner with our sister airlines Virgin Blue and V Australia to allow our loyal guests to earn frequent flyer credits wherever they are flying– in the U.S., Asia Pacific or Australia."

In June 2009, the airlines signed an Australia-U.S. interline agreement offering seamless travel on the networks of each carrier across their United States (U.S.) and trans-Pacific routes. The interline arrangement allows guests to enjoy a continuous "Virgin" experience for travel between the U.S. and Australia, as Virgin America and V Australia share Los Angeles World Airport's (LAX) newly redesigned Terminal 3.

For complete details on the new loyalty program arrangements visit any one of the airlines' web sites. www.virginblue.com.au; www.vaustralia.com; www.virginamerica.com.

About Virgin America: Virgin American's Elevate frequent flyer loyalty program offers guests the ability to redeem points for any unsold seat – on any Virgin America flight, at any time. Elevate offers Web-based redemption with no black-out dates and has grown to over 1.27 million members in just two years.

Headquartered in California and launched in August 2007, Virgin America is one of the fastest growing start-up U.S. airlines of all time and currently employs over 1500 people. Virgin America offers guests attractive fares and a host of innovative features aimed at reinventing air travel. The airline's base of operations is San Francisco International Airport's modern International Terminal. The airline's new aircraft offer interactive in-flight entertainment systems and power outlets near every seat for electronic gear. Virgin America offers in-flight internet service on every flight and hosts the largest in-flight entertainment library in the U.S. skies via its touch-screen Red™ seatback system.

Virgin America has captured a list of travel industry best-in-class awards since launch, including being named "Best Domestic Airline" in the Condé Nast Traveler 2009 Readers' Choice Awards and "Best Domestic Airline" in the Travel + Leisure 2009 World's Best Awards. The airline flies to San Francisco, Los Angeles, New York, Washington D.C., Seattle, Las Vegas, San Diego, Boston, Orange County (ending May 26), Fort Lauderdale and as of August 19, 2010 - Orlando. The airline currently offers daily flights from: SFO to LAX, SFO to JFK, SFO to SAN, SFO to IAD, SFO to LAS, LAX to JFK, LAX to IAD, SFO to SEA, SEA to LAX, JFK to LAS, BOS to LAX, BOS to SFO, SFO to SNA (ending May 26), LAX to FLL and SFO to FLL and starting August 19, 2010 – SFO to MCO and LAX to MCO.

About V Australia and Virgin Blue: Velocity Rewards is the multi-award winning loyalty program of the Virgin Blue Group of Airlines and is free to join online. Velocity rewards their Members faster, with less Points required for Reward seats compared to other Australian loyalty programs. It features any seat redemption, on any flight across the entire Group network (no blackouts, no restrictions). Velocity also has more than eight Airline Partners that provide a global network for their Members including Virgin Atlantic, Emirates, Delta Air Lines, Hawaiian Airlines, Virgin America and Malaysian Airlines. Plus, Members can earn Points with a wide range of on the ground Program Partners and then use those Points for rewards they really want from a beach cricket set to a brand new car. Visit www.velocityrewards.com.au

V Australia www.vaustralia.com.au is a three class boutique style airline offering the acclaimed service for which the Virgin Blue Group is renowned and a unique Australian style. The airline has two in-flight bars, mood lighting including twilight and sunset, bathrooms with piped music including a "ladies only" bathroom and other touches of Australiana from salt and pepper shakers to hidden wallpaper murals. V Australia is a part of the Virgin Blue Group of Airlines.

The Australian-based airline group also includes Virgin Blue, second largest domestic carrier in Australia www.virginblue.com.au and short haul international airlines Pacific Blue www.flypacificblue.com Polynesian Blue. Together they operate a fleet comprising of 85 modern Boeing 737-NG's, Boeing 777 and Embraer E-Jet aircraft flying to 30 Australian and 18 international destinations in the South Pacific and Southeast Asia.

*Guests can choose to earn points in the program of their choice - Elevate points or Velocity points (but not both) for their Virgin America, Virgin Blue and V Australia flights.

**Velocity Membership and Points earn and redemption is subject to Velocity Terms and Conditions as amended from time to time and available online at www.velocityrewards.com.au. The Velocity Program is operated by Velocity Rewards Pty Ltd ACN 116 089 448 as trustee of The Loyalty Trust.

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