News: Virgin scores AFL contract from Qantas

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Virgin Blue Holdings Ltd (ASX:VBA) will replace Qantas Airways Ltd (ASX:QAN) as the AFL's official airline from early next year, in a deal worth around $7 million.

The airline is believed to have aggressively competed for the contract to carry the 17, soon to be 18, teams and the officials of the Australian Football League across the country for the next three years.

Media reports speculate that Qantas was dumped because it would not commit to an exclusive contract with the AFL, ending its nine-year partnership with the league.

Qantas regional manager for southern Australia, Ken Ryan, told Fairfax Media that its relationship with the AFL had been a very good one, but there had always been an underlying discomfort from the AFL that Qantas had relationships with other sporting leagues.

Virgin Blue boss John Borghetti said yesterday the airline had scored a goal with the contract and that the partnership is a great fit for the Virgin Blue brand.

Virgin Blue earned a net profit of $21.3 million in the 2010 financial year.