Australian low-cost airline Virgin Blue has selected the Boeing 777-300ER over the Airbus A340 for its new long-haul operation, as it ponders the creation of an "ultra-low-cost" domestic operation.
Managing director Brett Godfrey says the regulatory approval process for the launch of transpacific services to the USA is under way and the airline is targeting a launch date in the second half of next year. Negotiations are now under way with Boeing for seven 777-300ERs, plus six options.
The long-haul operation will initially have a limited network and will have the same business model as the existing one with a targeted product.
Godfrey says one proposal is to form a new "ultra-low-cost" carrier, as Virgin Blue has moved away from being a pure low-cost carrier, targeting business travellers for example, and now dubs itself as a "new world carrier". The proposal, which Godfrey says is at a very early stage, comes just weeks after Singapore-based low-cost carrier Tiger Airways disclosed it would be establishing a domestic operation in Australia.
Meanwhile, Virgin Blue is to launch operations with its new Embraer regional fleet in October. Last November the carrier ordered 11 Embraer 190s and three 170s, with options on six aircraft, for Australian, New Zealand and Pacific Island services that could not support the Boeing 737.

Source: Flight International