Qantas's Loss, Virgin Australia’s Gain
The labor problems plaguing Qantas Airways for months now have given competitor Virgin Australia a wide opening to expand its market share.
Virgin Australia announced Wednesday it will provide extra flights in the coming months to cushion the impact of the Qantas Airways industrial action on the Australian travel and tourism industry.
In a statement, Virgin Australia CEO John Borghetti said the air carrier has put in place to add extra capacity over the next few weeks, including 3,000 seats each week up to Oct. 30 as well as adding a fifth daily return service from Melbourne to Perth from Dec. 20.
The Virgin Australia CEO also said last week Virgin Australia was already flying added hours to accommodate travelers whose flight itineraries were disrupted by the Qantas strikes. He also announced a new 737 aircraft would be brought in three weeks ahead of schedule.
"Over the last three months, we have increased our capacity around Australia, adding more than 31,000 seats each week, including expanding our presence in the very important Perth market, where we have introduced wide-body aircraft and business class seats," Borghetti said.
Virgin Australia had already added 6,800 seats on its Perth routes, with business class available on all flights from the East Coast.
Borghetti also said Virgin have entered into international alliances with Singapore Airlines, Delta Air Lines, Etihad and Air New Zealand, making Virgin Australia well equipped to provide extra flight capacity from November, leading into the busy December and January holiday period.
Meanwhile, Virgin Australia said no price restructuring will happen even with the additional flights.
"More flights at the same price... there will be no change to our pricing strategy," Borghetti said in the Australian Business Traveller.
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