With a passionate CEO and a prefect strategy, Virgin Blue has a long way to go. The airline is taking off to new heights and the vision of Virgin’s CEO John Borghetti, to make it a ‘new age International Airline’ is not far from becoming reality as Australian Competition and Consumer Commission have authorized its Trans-Tasman alliance with Air New Zealand.
The commission has not only, conditionally authored Virgin Blue and Air New Zealand alliance for the next three years, and also provided a draft authorization of another of the carrier’s proposed alliances, this time with Etihad Airways.
All that’s left for a very satisfactory first seven months at the helm of the group for Borghetti is an overturning of US regulatory opposition to the third of his alliances, a tie-up with Delta Airlines on the trans-Pacific route. These alliances are the backbone of Virgin Blue’s future growth plan and strategy of transforming Virgin Blue into an international airline. At present the airline operates on primarily domestic routes with a handful of unrelated international routes within Oceana.
Virgin Blue is looking forward to create a virtual international network with minimal capital outlays through alliances with leading international carriers. The airline is competing neck to neck with Qantas on domestic routes as well. Qantas, Australia’s ‘Kangaroo airline’ dominates on routes and flights between Brisbane, Perth, Melbourne, Adelaide, Sydney, Wellington, Christchurch, Auckland and London, where it has alliance with British Airways.
The most important or ‘strongest pillar’ up holding Virgin Blue’s strategy is its deal with Etihad Airways that will give it a one-stop access to the Middle East, the UK and Europe. The flow of passengers in both directions is vital in the process strengthening Virgin’s domestic routes.
Virgin Blue appointed Mr. John Borghetti earlier this year on May 08th, 2010, as the company’s new CEO and Managing Director. Mr. Borghetti replaced Brett Godfrey, former CEO of Virgin Blue. He resigned from Qantas Airline in May-2008 after 36 years at the carrier bringing unmatchable experience, passion and expertise in Aviating industry to Virgin Blue.
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