MELBOURNE, Australia -- Australian airline Virgin Blue may begin international flights to Hong Kong, Indonesia and New Zealand if current expansion plans bear fruit, according to Virgin's high-profile boss Sir Richard Branson.
Branson, in Australia Friday to launch a new marketing campaign for the number two airline, said he was currently deciding whether to proceed with a $1.65 billion order to buy new aircraft.
Virgin Blue runs 16 Boeing 737 aircraft on Australian domestic routes and focusses on offering discount fares in competition with Australia's dominant carrier Qantas.
Branson said Virgin Blue was looking at flying to the popular Indonesian tourist destination of Bali as well as tap into the lucrative trans-Tasman route to New Zealand.
But the latter decision would depend on any decision by Qantas to buy into South Pacific rival Air New Zealand.
While both those airlines are talking about a possible alliance, any deal is fraught with political and competition complexities which could delay or prevent a deal being done.
Qantas is in talks with the New Zealand carrier about taking a stake in the airline currently majority owned by the New Zealand government.
Air New Zealand Chairman John Palmer said Wednesday an alliance with Qantas could help both airlines cope with international competition.
Ambitious target
Branson also said Virgin Blue was looking at flying a route to Hong Kong.
Before its collapse, Air New Zealand subsidiary Ansett Airways flew international routes to Bali and Hong Kong and Virgin Blue could well be looking to cash-in on any pick-up in business to these destinations as travelers recover confidence following the September 11 attacks.
"I'm sure that we'll be applying to fly to Bali at some stage," Branson told reporters Friday.
Apart from the 16 planes already flying, Virgin Blue has another seven planes scheduled for delivery this year.
While Qantas currently has about 85 percent of the Australian domestic market following the demise of Ansett, Branson has said Virgin Blue is aiming at an ambitious 50 percent share within five years.
Virgin Blue is majority-owned by Australian transport and logistics group Patrick Corporation.
Copyright 2002 CNN. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Associated Press contributed to this report
HONG KONG, China -- Hong Kong's largest airline, Cathay Pacific, has applied for formal approval to fly to three Chinese cities.
Cathay stopped flying to China 12 years ago in a deal to aid its affiliate Dragon Airlines, also based in Hong Kong.
But Cathay told CNN in July that it was conducting market research about flying into China again, after Dragonair won the right to fly to Taiwan. (Full story)
A government spokeswoman told wire services Friday that Cathay has now officially filed to fly from Hong Kong to the cities of Beijing, Shanghai and Xiamen.
Those are three of the most profitable routes. There is heavy Hong Kong investment in Shanghai property, and most multinationals operate an office out of Beijing.
Xiamen is a coastal city directly across from Taiwan, in Fujian province. Cathay has said it believes increased business from passengers to and from China will be essential in offsetting any declines if China and Taiwan approve direct flights.
Pressure from direct flights
Cathay is one of the main beneficiaries from the political tensions between China and Taiwan, with all passengers between the two required to fly indirectly, typically via Hong Kong or Macau.
That has made the Taiwan-Hong Kong route one of the most profitable in the world. Analysts suggest Cathay would lose out considerably if direct flights between Taiwan and China begin.
The two largest domestic Chinese carriers, China Southern and China Eastern, have conceded that competitive pressure from Cathay would cut into profits.
Cathay stock closed up 2.55 percent to HK$12.05, outperforming the Hang Seng index, which lost 0.17 percent to 10,043.87.
Interested parties now have two weeks to comment on Cathay's request.
Posts: 848
By: monster500 - 3rd September 2002 at 02:17
MELBOURNE, Australia -- Australian airline Virgin Blue may begin international flights to Hong Kong, Indonesia and New Zealand if current expansion plans bear fruit, according to Virgin's high-profile boss Sir Richard Branson.
Branson, in Australia Friday to launch a new marketing campaign for the number two airline, said he was currently deciding whether to proceed with a $1.65 billion order to buy new aircraft.
Virgin Blue runs 16 Boeing 737 aircraft on Australian domestic routes and focusses on offering discount fares in competition with Australia's dominant carrier Qantas.
Branson said Virgin Blue was looking at flying to the popular Indonesian tourist destination of Bali as well as tap into the lucrative trans-Tasman route to New Zealand.
But the latter decision would depend on any decision by Qantas to buy into South Pacific rival Air New Zealand.
While both those airlines are talking about a possible alliance, any deal is fraught with political and competition complexities which could delay or prevent a deal being done.
Qantas is in talks with the New Zealand carrier about taking a stake in the airline currently majority owned by the New Zealand government.
Air New Zealand Chairman John Palmer said Wednesday an alliance with Qantas could help both airlines cope with international competition.
Ambitious target
Branson also said Virgin Blue was looking at flying a route to Hong Kong.
Before its collapse, Air New Zealand subsidiary Ansett Airways flew international routes to Bali and Hong Kong and Virgin Blue could well be looking to cash-in on any pick-up in business to these destinations as travelers recover confidence following the September 11 attacks.
"I'm sure that we'll be applying to fly to Bali at some stage," Branson told reporters Friday.
Apart from the 16 planes already flying, Virgin Blue has another seven planes scheduled for delivery this year.
While Qantas currently has about 85 percent of the Australian domestic market following the demise of Ansett, Branson has said Virgin Blue is aiming at an ambitious 50 percent share within five years.
Virgin Blue is majority-owned by Australian transport and logistics group Patrick Corporation.
Copyright 2002 CNN. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Associated Press contributed to this report
HONG KONG, China -- Hong Kong's largest airline, Cathay Pacific, has applied for formal approval to fly to three Chinese cities.
Cathay stopped flying to China 12 years ago in a deal to aid its affiliate Dragon Airlines, also based in Hong Kong.
But Cathay told CNN in July that it was conducting market research about flying into China again, after Dragonair won the right to fly to Taiwan. (Full story)
A government spokeswoman told wire services Friday that Cathay has now officially filed to fly from Hong Kong to the cities of Beijing, Shanghai and Xiamen.
Those are three of the most profitable routes. There is heavy Hong Kong investment in Shanghai property, and most multinationals operate an office out of Beijing.
Xiamen is a coastal city directly across from Taiwan, in Fujian province. Cathay has said it believes increased business from passengers to and from China will be essential in offsetting any declines if China and Taiwan approve direct flights.
Pressure from direct flights
Cathay is one of the main beneficiaries from the political tensions between China and Taiwan, with all passengers between the two required to fly indirectly, typically via Hong Kong or Macau.
That has made the Taiwan-Hong Kong route one of the most profitable in the world. Analysts suggest Cathay would lose out considerably if direct flights between Taiwan and China begin.
The two largest domestic Chinese carriers, China Southern and China Eastern, have conceded that competitive pressure from Cathay would cut into profits.
Cathay stock closed up 2.55 percent to HK$12.05, outperforming the Hang Seng index, which lost 0.17 percent to 10,043.87.
Interested parties now have two weeks to comment on Cathay's request.