Virgin to upgrade Pacific Blue for business travellers
Steve Creedy From: The Australian May 24, 2010 12:00AM
VIRGIN Blue plans to upgrade low-cost subsidiary Pacific Blue to make it more attractive to business travellers.
A joint submission to the Australian Competition & Consumer Commission by Virgin and Air New Zealand says the carriers will align their products if they are allowed to form an alliance on flights across the Tasman.
This would include fare names, on-board announcements and products, and in-flight entertainment to give their services a uniform appearance.
The submission says the airlines, which have asked the competition regulator to initially approve the alliance for five years, will co-ordinate trans-Tasman services, co-operating on frequent flyer and lounge programs as well as cost-sharing and cost-saving initiatives. It notes that Pacific Blue has not adopted Virgin Blue's new world carrier model, which is aimed at attracting more corporate customers but now under review as part of the Airline of the Future project.
It says it wants to form "one strong Australian-based international airline with a consistent level of service, including frequency, network connections, high-value services and a contemporary brand image and product feel" as a more attractive offering against Qantas-Jetstar.
"Virgin Blue is looking to enable Pacific Blue to maintain its attractiveness to its core leisure customers but to move into the corporate segment, while better integrating Pacific Blue's offering with the Virgin Blue new world carrier business model."
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