Diversification is key, says Virgin

Diversification is key, says Virgin
By admin


Virgin Australia is confident its profits will climb in the face of prevailing economic challenges, as it continues to diversify its product offering.

Speaking at the airline’s annual general meeting in Brisbane, chief executive John Borghetti confirmed the airline will pursue domestic capacity growth of between 8% and 9% in the first half of the 2013 financial year, but declined to provide shareholders with profit guidance due to a “particularly competitive environment”.

But he predicted “improved profit before tax” was on the cards, pointing to recent transactions which he identified as key to the airline’s strategy to overcome economic challenges.

Virgin’s acquisition of regional carrier Skywest and a 60% stake in Tiger Australia, combined with Singapore Airline’s acquisition of  a 10% stake in the airline, will “bring important benefits to Australia” in the form of jobs, tourism and competition, Borghetti predicted.

“We need to ensure that Australia has strong competition in all sectors of the aviation market and these transactions will allow that,” he said.

Meanwhile, chairman Neil Chatfield reported success for the airline’s focus on diversifying its earnings through its Game Change strategy, now moving into its next phase.

He confirmed Virgin had exceeded its target of 20% of domestic revenue from the corporate and government market, achieving a “strong presence” in both the leisure and business travel markets.

“The progress achieved so far has seen us much better equipped to weather the volatile operating environment and this is evident in our results,” he told shareholders. “We plan to continue this work through expanding our presence in the budget and regional markets.”

While he conceded strong competition in the domestic market looks set to continue, he insisted Virgin is “well-placed to manage” and said the airline would seek to capitalise on growth potential in the Asian and Middle Eastern markets.

Latest News

  • Aviation

Australia’s aviation sector COVID recovery complete, says ACCC’s Domestic Airline Competition report

Australia’s aviation sector appears to have recovered from the COVID-19 pandemic as passenger levels and capacity returned to pre-pandemic levels, the ACCC’s latest Domestic Airline Competition in Australia report reveals. Australia’s major airlines – Jetstar, Qantas, Rex, Virgin Australia and the now embattled Bonza – carried 4.9 million domestic passengers in March 2024, which represented […]

  • Travel Agents

Expedia’s chief technology officer and senior engineer sacked for company policy violation

Travel company Expedia Group said its chief technology officer and a senior engineering leader over “a violation of company policy” just two days after the company held its annual product and partner conference in Las Vegas. CTO Rathi Murthy and Sreenivas Rachamadugu, the senior vice president of Core Services Product and Engineering, have been let […]

  • Aviation

Qantas and Virgin change tune on aviation ombudsman ahead of white-paper release

Qantas and Virgin have backflipped on their stance and given conditional approval to an ombudsman that would look over passenger complaints. The news comes ahead of the soon to be released aviation white-paper, criticism of the major carriers’ delay and cancellation rates and a $120m fine for Qantas. Qantas cops $100m penalty with passengers to […]

  • Attractions

Wackadoo! Bluey’s World is set to open in Brisbane

Wackadoo! The eagerly anticipated Bluey’s World is set to open in Brisbane, on 7 November, offering families an unforgettable Bluey adventure with tickets on sale from tomorrow. Bluey’s World is a one-of-a-kind, immersive experience that will take visitors into the Heeler’s iconic family home, backyard and beyond – for real life. Get ready to play […]

  • Destinations

Listening to whales, followed by Ales and Prawn Tails on the Sunshine Coast

Queensland’s Sunshine Coast is preparing to welcome more than 40,000 humpback whales that are making their way up the Australian east coast on their annual migration. The Sunshine Coast is one of Australia’s premier whale tourism destinations, built on its long-established whale watching cruises and Sunreef’s pioneering Swim with Whales experience, which celebrates its 10th […]

  • Aviation
  • Travel Agents

Webjet relaunches partnership with AirAsia with a huge Asia flights sale

Online travel agency Webjet has have relaunched their partnership with AirAsia with a huge Asia flights sale, available until 2 June. To give customers a greater breadth of choice and price point, hundreds of new flight options to Aussie favourite destinations have been added, including Bali, Kuala Lumpur and Bangkok via AirAsia, AirAsiaX, Thai AirAsia […]

  • Luxury

Why luxury clients are opting for immersive experiences over material items

The Luxury Travel Collection’s (LTC) inaugural business owners Soiree took place on Hayman Island last week. The event saw luxury leaders gathering to find out more about the key trends shaping the industry. The Immersion Day, held on Thursday 16 May 2024, followed the growing luxury client trend of valuing immersive experiences over material items. […]

  • Conferences

Empowering underserved communities: Expedia Group’s drive for more inclusive travel

Expedia Group has used the EXPLORE conference at the Aria Resort in Las Vegas to highlight initiatives that empower underserved communities worldwide.   In a groundbreaking move towards fostering diversity and inclusion within the travel industry, Expedia’s Global Social Impact and Sustainability Team is dedicated to shaping a travel landscape that is safe, welcoming, and accessible […]

  • Cruise

P&O rescues Rotary volunteers after collapse of Air Vanuatu

P&O Cruises Australia has answered a plea for help from a group of young Australian Rotary volunteers, stranded in Vanuatu following the collapse of Air Vanuatu. The students, many of them teenagers from Albury, NSW, were volunteering for a youth project run by the Hive Rotary Club Australia when the airline abruptly cancelled all flights, […]

  • Destinations

Intrepid continues expansions with launch of first DMC in Jordan

Intrepid has increased its presence in the Middle East with the opening of its first destination management company in Jordan. Based in Amman, the local team will operate Intrepid’s range of nine experiential small group tours in Jordan from this summer, with a view to expanding the range for 2025 and beyond. Zina Bencheikh, managing […]

  • Appointments

Minor hotels appoints Puneet Dhawan to key Asia role

Global hotel owner and operator Minor Hotels has appointed Puneet Dhawan as head of Asia as the group plots its growth in Asia and India. From July, Dhawan will be responsible for the performance of all Minor Hotels properties in Asia, working in close collaboration with the Minor Hotels senior leadership team and will report […]

  • Appointments

Abercrombie & Kent and Crystal appoint Evon Ler to director of sales, Asia

Abercrombie & Kent Travel Group have announced that Evon Ler will join them in the new role of director of sales, Asia. She will work closely with Tony Archbold (VP, Sales, APAC, Crystal) and Susan Haberle (VP, Sales & Partnerships, APAC, A&K) with trade support across the region. Ler comes to the A&K family with more […]