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Branson goes Brazilian Down Under
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Hash: SHA1 [ One up game with Qantas? -Ed. ] http://www.smh.com.au/news/business/...339973708.html http://www.smh.com.au/news/business/...339985011.html Size counts for Virgin as it tries Brazilian Danny John November 3, 2006 VIRGIN Blue yesterday took a long-awaited step in transforming itself from a low-cost carrier into an all-round competitor to Qantas by becoming the first Australian airline to buy a fleet of small jets from the Brazilian aircraft maker Embraer. The purchase of up to 20 Embraer jets - 14 firm orders with an option on a further six - will give Virgin the ability to switch the new fleet of planes onto key regional and inter-state routes. This will free up its current and larger Boeing 737-700 and -800 aircraft for greater use on the heavily-travelled east coast where Virgin is trying to grab a greater share of the corporate and business market from Qantas. The order is worth nearly $1 billion, but industry sources believe Virgin will have secured a significant discount as the country's launch customer for Embraer 190 and 170 planes. It is the first time since it listed on the ASX that Virgin has bought from a manufacturer other than Boeing and is a significant move away from the low-cost carrier model given that it increases the cost of maintaining two types of aircraft. Ian Thomas, a consultant to the Centre for Asia Pacific Aviation, described the move as Virgin reinventing itself as another Ansett, serving different markets with different planes and therefore be more flexible. The Embraers could service the leisure markets, replace the 737s on routes where bigger jets weren't justified or be flown when passenger numbers were more suited to smaller planes. However, the move would put pressure on Virgin Blue to justify the expenditure. "In doing so they are going to have to see a return in a relatively short time," Mr Thomas added. The biggest of the two aircraft, the Embraer190, seats between 98 and 114 passengers and has the range to fly to anywhere in Australia from Sydney. It could even be deployed on routes to New Zealand and other destinations in the Pacific which Virgin serves through its Pacific Blue subsidiary The smaller Embraer 170 can handle 70 to 80 passengers and as well as flying from Sydney to anywhere on the eastern seaboard, could service Darwin as well as opening up an Adelaide-to-Perth route. Both aircraft could allow it to sign up valuable contracts with West Australian mining companies or tailor specific services to land business with the Federal Government on the Sydney-to-Canberra route. Virgin chief executive Brett Godfrey said: "These new jets will enhance our ability to serve the corporate market by more accurately matching seat capacity and frequency to passenger demand." News of the order saw Virgin Blue's shares yesterday close up 3c up at $1.83. BL. - -- Brad Littlejohn | Email: Unix Systems Administrator, | Web + NewsMaster, BOFH.. Smeghead! | http://www.wizard.com/~tyketto PGP: 1024D/E319F0BF 6980 AAD6 7329 E9E6 D569 F620 C819 199A E319 F0BF -----BEGIN PGP SIGNATURE----- Version: GnuPG v1.4.5 (GNU/Linux) iD8DBQFFS+SnyBkZmuMZ8L8RApQiAJ9ffCFWkYIJnKCI7YEnAG 93KlFcVQCg8OQq 870/dnnDpozqAHo1WxTmCBI= =kxe4 -----END PGP SIGNATURE----- |
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Branson goes Brazilian Down Under
"ozzie kiwi" wrote in message . .. A Guy Called Tyketto wrote: Size counts for Virgin as it tries Brazilian Danny John November 3, 2006 VIRGIN Blue yesterday took a long-awaited step in transforming itself from a low-cost carrier into an all-round competitor to Qantas by becoming the first Australian airline to buy a fleet of small jets from the Brazilian aircraft maker Embraer. I thought the subject meant Branson had decided to get a Brazilian wax ... lol. haha me too....I reckon he has access to some great pussy too |
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