David Knibb/SEATTLE

Too many manuals and too little staff have delayed Virgin Blue's much-publicised Australian launch. Instead of starting on 3 August, the Brisbane-based start-up now is hoping to take off sometime before the Sydney Olympics in mid-September.

Australia's Civil Aviation Safety Authority (CASA) had estimated it could complete Virgin's certification by early August, prompting Sir Richard Branson to visit Australia and announce an 3 August launch. As that date neared, however, it became apparent that CASA was overworked and could not finish by then. Virgin Blue was forced to refund early bookings and delay its launch.

CASA has now added inspectors, including four to deal specifically with foreign carrier oversight.

Virgin Blue's delay has prompted Impulse Airlines, Australia's other new start-up, to accelerate the launch of its Sydney-Brisbane service, which was the first route Virgin planned to fly. Impulse is offering an introductory fare at the unprecedented level of A$33 (US$19) one-way for internet bookings.

The fare is capacity-controlled, but still it will take much of the punch out of Virgin Blue's launch. Impulse also plans in September to add capacity on the Sydney-Brisbane route - right when Virgin Blue starts.

Source: Airline Business