The New Competitive Policy Of Virgin Airlines.

Posted on August 29th, 2012 by in Aviation News

Virgin Airlines has taken a few steps to improve its standing in the industry as far as profits are concerned. The owners of Virgin Holdings made a decision to opt for the more competitive markets that include the government and the corporate world. John Borghetti has called this shot at a crucial time in the industry as it is no secret that revenue has been steadily falling due to the global economic situation. After this move was made, the airline had higher earnings at the end of the year.

Borghetti has been playing all his cards as best as he can. He is the individual behind the creation of a three year plan to rob Qantas Airlines of its hard earned market share. The market of corporate fliers and government fliers has proven very lucrative indeed. All fliers are in general being made to experience endearment to the airline because of the facilities or perks offered to frequent fliers.

According to the records of the airline, profits have incurred an unexpected increase due to the exploitation of the higher market that Borghetti so exclusively opted for. There has been an increase of about 62%. This particular increase is now going to amount to about 20% of all revenue earned internally. One of Virgin’s strongest policies has been to beat Qantas at its own game and secure a larger share. The airline itself has preferred not to consider other smaller competitors in the industry.

Qantas has been struggling somewhat with its international flights and has of late become prey to a large number of troubling issues. Qantas is faced with higher costs of aviation fuel, industrial problems and a fall in the price of its shares. Virgin Airlines has sought to benefit as much as possible from the temporary downturn of Qantas and use this opportunity to establish itself as something of a market leader in the aviation industry. It also seeks to zap a lot of the domestic business that Qantas benefits from.

But it seems that Qantas is going to put up a fight for its rightful share of the domestic aviation market. Alan Joyce the boss of Qantas has made it clear that the airline will not relinquish its market share to Virgin at any cost.