Virgin Blue

Company background

perfect(a) Blue, one of the airline companies in Australia, which provides lost cost, depressive dis hunting lodge shipping home(prenominal) airline, offering frequent passenger inspection and repairs on routes mingled with all of the Australias major cities, is one of the subsidiaries of the Virgin pigeonholing that established on 3 August 2000 with two aircraft initially offering seven return flights a day between Brisbane and Sydney. And this has been expanded to cover the major cities in Australia.

By now, Virgin Groups retentivity in Virgin Blue has been reduced via a deal of half interest to Patrick Corporation, and later by a unrestricted float. By the closure of the offer, Patrick Corporation has hold 62% of the confederation, cock-a-hoop it control. And Virgin Blue retains a 25% cover.

According to Virgin Blue, the object lens of launching the company is to develop a Virgin branded, low cost, low fare carrier operating in the Australian domestic aviation market. In fact, Virgin Blue has been sound one of the fast growth rate airline company in the world that grew rapidly to become second domestic carrier in Australia. Until 2003, Virgin Blues overall passenger share of the total domestic market of Australia was more than 28% and procurable capacity share was 27% (Virgin Blue Prospectus, p.57, 2003).

The business lesson adopted was similar to those successful low cost carriers in Europe and North America, such as Southwest Airlines and Ryanair. Similarly, Virgin blue operates only one type of aircraft, the Boeing 737 series, of which it currently has 49 and plans to acquire more and provides in-flight meals and printed tickets in favour of selling sustenance on board and using telephone and internet troth systems to eliminate the costs (http://www.answers.com/).

In September 2003, Virgin Blue denote its wholly-owned subsidiary, Pacific Blue to offer a similar cheaper service between New...

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