Virgin sets sights on Asia By Michael Bruce on 20 April 2011 0 comments Virgin Blue has set its sights on expanding into Asia as chief executive John Borghetti again mapped out ambitions to take the fight for corporate travellers to Qantas.
Speaking at a lunch in Sydney today, Borghetti revealed the carrier was working on a plan to move into the "fastest growing region globally".
While declining to reveal details he said it was "not going to leave that part of the world uncovered".
"The IMF predicts that within five years Asia's economy will be about 50% larger than it is today, account for more than a third of global output, and be comparable in size to the economies of the US and Europe," he told the Australian British Chamber of Commerce event in Sydney. "We are positioned on the doorstep of Asia and we are going to play in that space.?
But he declined to elaborate, saying Virgin was "not ready" to reveal details.
In a separate development, Borghetti revealed that it will soon codeshare with Hawaiian Airlines on flights from Sydney to Honolulu, further expanding its leisure routes.
Earlier, Borghetti revealed ambitions to grow its market share of the corporate sector from the current 12% to 20%.
"Virgin Blue's enormous exposure to the leisure market means that it is much more sensitive to macro-economic fluctuations than the business market," he said. "The business market in contrast is far more resilient. From our perspective this higher yielding market not only provides a greater source of profitability but also lower volatility of our revenue line.?
Borghetti also admitted that its four brand strategy was confusing for customers and confirmed plans to consolidate. ?You won?t see us, or you probably won?t see us, move to one brand but I can guarantee a rationalisation,? he said.
