Business Services Industry

Virgin boss shrugs off Jetstar threat.

Australasian Business Intelligence, June, 2004

Jun 09, 2004 (The Mercury - ABIX via COMTEX)

Virgin Blue Airlines CEO, Brett Godfrey, has said bookings have not been affected by the launch of Qantas Airways' subsidiary Jetstar Airlines. Godfrey described Jetstar as a "carve-out" of Qantas. Comparable booking numbers for the two discount Australian carriers are not yet available, meaning there is still division among analysts over whether Jetstar will take market share from Virgin Blue or its parent Qantas. Jetstar and Qantas expect to hold a combined 65 of the local market, but Virgin Blue has stated it wants 50 market share. The carrier recently said it has 33 of the market. Virgin Blue shares increased $A0.01 to $A2.05 on 9 June 2004, while Qantas shares declined $A0.05 to $A3.43.

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