Besides using the Qantas labor row to its advantage, Virgin Australia aims to get a larger share of the corporate passenger market by offering premium lounges.

The small super premium lounges at major Australian airports would target valued flyers such as federal politicians, celebrities and heads of the top 100 companies in the country. It seeks to rival the Chairman's Lounger of Qantas.

Qantas' Chairman's Lounge is limited to 7,000 members, discreetly located in airport terminals. It has designer furniture and a self-service bar that is always open. Besides the premium lounge area, members are often upgraded to business class seats on their trips.

To match what Qantas offers, Virgin Australia would provide at the Brisbane Airport valet parking and speedy premium check-in for the exclusive lounge members which bypasses security lanes that are often crowded. At the Sydney Airport, Virgin would offer a new two-level lounge that provides view of the airport and Botany Bay from the upper level.

Unlike Qantas which logged a six-month 83 per cent decline in profit due to fleet grounding and the prolonged labour dispute, Virgin registered last week a 118 per cent increase in interim net profit of $51.8 million, while revenue grew 18 per cent to $2 billion for the second half of 2011.

"While we have continued to see high fuel prices and an uncertain economic environment, our Game Change Program strategy has helped us to improve earnings stability and achieve growth during this half," Virgin Australia Chief Executive Officer John Borghetti said in a statement.

"Key to this success has been the stability of our team to embrace and drive that program of change and innovation. Their commitment to becoming the airline of choice in Australia is evident in increasing customer satisfaction levels," he added.

He cited the success of the air carrier's alliances with partners such as Etihad Airways, Air New Zealand, Delta Air Lines and Singapore Airlines.

For business class passengers, Mr Borghetti disclosed that beginning April, the will be provided with individual Samsung Galaxy tablets loaded with television shows, movies and audio for their inflight entertainment. He added that by the end of 2012, the air carrier's Boeing 737 jets would provide wi-fi to passengers with their own handheld devices.

Virgin also renewed for four years its catering agreement with Gate Gourmet, which provides menus designed by Australian chef Luke Mangan.

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