How does Virgin Blue keep its fares low?
From the outset, Virgin Blue has operated as an entrepreneurial, discount airline. It may have grown from its modest beginnings to the second largest airline in Australia, but Virgin Blue has maintained its back-to-basics business model.
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Virgin Blue attracts passengers in many ways
While maintaining the ethos of a low cost carrier, the airline responds to customer values and needs through a multi-channel strategy: competent and friendly service, low overheads, comprehensive online services, aggressive promotional sales, and a frequent flyer program that is the envy of many an airline executive.
Virgin Blue’s Velocity Frequent Flyer Rewards Program
Virgin Blue’s frequent flyer program, Velocity, incorporates a unique approach by allowing members to ‘purchase’ reward tickets with accumulated points. This method allows members to save points by choosing off-peak flights, or spend the maximum quantity of points to purchase the last seat on an almost fully-booked departure.
Virgin Blues profit increase in 2007 despite higher fuel costs
Virgin Blue announced a net profit increase after tax of 7.6% for the half-year period to 31 December 2007, a result which was achieved despite record fuel costs, aggressive competition and continued investment in major long term initiatives.
Virgin Blue expands domestic routes with new jets
The progressive introduction of new jet types to expand Virgin Blue’s domestic network will enable it to service new ports and previously uncontested routes, while redeploying their larger 737 capacity to those routes which can profitably support additional capacity.
Virgin Blue’s regional growth strategy continues to deliver on the airline’s commitment to bringing competition and affordable fares to Australia’s regional communities.
Virgin Blue: The proof is in the pudding!
Competition, economies of scale, an award winning loyalty program and a commitment to both the leisure and business markets define Virgin Blue’s low-price strategy. The airline’s profits are proof that the strategy is working: more people are flying, and making their choice Virgin Blue.