Virgin dominance of Australian premium flights
Virgin Blue is now aggressively changing their Australian airline packages to appeal to more customers, especially business travelers, even during the financial downturn. The company has recently unveiled their newly revamped package which features lower airline fees for their premium seats. This was done to sway the preference of business travelers into premium traveling. The airline industry is now scrambling to save as much as they can as they are already experiencing lower booking on premium seats and even reduced travelers in the economy class.
But the situation of Virgin Blue is different. They are now enjoying the available resources they have to safely gamble on offering more premium seats. Smaller airlines may be able to match the pricing of Virgin Blue but the earnings they could enjoy may not be enough to venture in premium economy and other upgraded seats. Aside from reduced competition, Virgin Blue is also banking on the recently tarnished reputation of Qantas. Just recently, Qantas has been rocked by scandals as safety standards were reportedly not met and there were cover-ups made so that passengers will be left to think that they are travelling with an airline with standard safety features. Recent polls show that public trust on Qantas has dropped significantly.
Virgin Blue is there to grab the opportunity.
Even with the lowered rate for their premium seats, Virgin Blue’s premium seat features will stay the same. Your airline ticket could get you free food, entertainment and bigger legroom during travel. Luggage allowance will be increased as well priority check in and access to executive lounge.
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