Branson goes Brazilian Down Under

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[ 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
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"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