Virgin Australia to Ramp Up Number of Flights from Melbourne
By Neil Wilson, Herald Sun | Oct. 15, 2011
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Virgin Australia has revealed it will increase services from Tullamarine in time for the peak Melbourne Cup week, swooping on the business market while industrial unrest engulfs Qantas.
Virgin chief John Borghetti said growing demand from business customers had prompted the group to schedule three more services from Melbourne every day.
The revelation comes after analysts warned this week Qantas could lose business customers to Virgin and bleed tens of millions of dollars in revenue each day until it resolves its industrial woes.
Virgin will use new Boeing 737-800s fitted with business class interiors on some of the new flights.
It will increase the number of Sydney return services by two to 29 every day, lifting seat numbers by about 700, with a wide-bodied Airbus A330 to replace smaller aircraft on the Melbourne-Perth route.
"If you want to increase your presence in the corporate sector, you have to concentrate on the biggest market (of) Melbourne-Sydney. This is another sign we are serious," Mr Borghetti told BusinessDaily.
He said the move to add flights coinciding with the busiest week of the Spring Racing Carnival was not a response to Qantas' industrial problems, but part of a phased expansion.
Mr Borghetti said the Qantas industrial action was not good for the sector, but did not deny that its problems provided Virgin with an opportunity to increase market share.
And he rebuked Qantas chief Alan Joyce, who had claimed Virgin had a competitive advantage because it paid pilots 50 per cent less than the flag carrier.
"Maybe he was comparing CEO salaries," Mr Borghetti said, speaking at a British-Australian Chamber of Commerce lunch in Melbourne. "If we are able to keep pilots, or any other part of the workforce, and pay them 50 per cent less than the other guys, we must be very good."
He said the Fair Work Australia website revealed "it's not the right number" and the difference in pay rates was, at most, "single digit".
His comments came as the Australian Shareholders Association (ASA) said it would use proxies to vote against Qantas' executive remuneration report at the airline's general meeting. The association will also vote against the motion covering Mr Joyce's participation in the Qantas incentive program.