Business Services Industry

Branson scoffs at Jetstar.

Australasian Business Intelligence, September, 2006

Byline: Louise Longman

Sep 18, 2006 (Travel Weekly - ABIX via COMTEX) -- The introduction of Jetstar's low-cost long international flights has been greeted with scepticism by the head of the Virgin Group. Richard Branson does not believe the model being used by Australia's Jetstar will work. Branson says the new flights are aimed at reducing the cost base of its parent company, Qantas, although he stops short of saying definitively that the Jetstar routes will fail. Branson made the comments in early August 2006 while in Sydney, Australia for the opening of the new $A25 million Virgin Blue hangar at Brisbane Airport. He says that Virgin Blue's program of introducing long haul flights is not at all threatened by the Jetstar flights as he felt the Virgin Blue...

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