Brisbane has been selected over Melbourne for low-cost start-up Virgin Australia's A$200 million ($133 million) operational, reservations and administrative headquarters.
Virgin chairman Richard Branson says Melbourne lost because of a dispute over terminal space and the design and costs of a proposed A$7 million common-user terminal, which would be shared with rival Impulse Airlines.
Branson was unhappy with the proposed terminal design, which would have meant that passengers would face being bussed to the aircraft or having a long walk. The carrier may apply to use nearby Essendon, Melbourne's former major airport, until terminal building problems are resolved.
Virgin is to operate Boeing 737s on prime routes and has provided preliminary documentation to the Civil Aviation Safety Authority.
Source: Flight International
