Business Services Industry
Virgin Blue cuts Canberra flights.(Virgin Blue Airlines)(Brief Article)
Australasian Business Intelligence, August, 2004
Aug 23, 2004 (The Australian Financial Review - ABIX via COMTEX)
The budget Australian airline, Virgin Blue, has made a strategic move. It will abolish its flights between Sydney and Canberra, due to lack of patronage. Earlier, the airline cancelled its Sydney to Alice Springs flights. David Huttner, of Virgin Blue, said that Australian Government bodies had chosen not to fly with Virgin Blue, even when it offered cheaper seats. He added that Qantas still dominates the $A300 million government travel market. The move reveals that Virgin Blue is facing intense competition in the aviation sector. Virgin Blue quickly grabbed 30 of the Australian airline market, but is finding it very hard to gain a further market share. Senior public servants in Canberra said that...
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