Free Flights for expensive muffins!

JETSTAR chief Bruce Buchanan has revealed the budget carrier is making more from in-flight service than ticket sales such as such as cups of coffee, muffins, baggage and special seat charges which works out to being around $24 a passenger.

Mr Buchanan said ancillary revenues had increased from $2-$3 per ticket to the mid-$20s in the space of a few years and were growing “very fast”. This is the second-best result in the world when benchmarked against other carriers. This money goes straight to the bottom line.

“One way to look at it is that if we didn’t have the ancillary revenue we wouldn’t be making any money. We would be losing money,” Mr Buchanan said, in a likely reference to the hurt caused by the rocketing price of jet fuel.

So what does it cost?

Jetstar passengers are charged $4 for a muffin or a small container of Pringles, and $3 for a small bag of M&M chocolates.

A can of Coke costs $3 in-flight, but costs an average of $1.20 in supermarkets in Sydney and Melbourne. Coffee will set you back around $3 - below the national average of $3.20 - and a hot chocolate $4.

Meanwhile the cost of a window seat in the exit row can cost up to $60, while in-flight entertainment can cost $15 and extras such as blankets and pillow $7.

In other developments yesterday Jetstar parent Qantas rolled out its biggest gun - the 7.5 million member Platinum Frequent Flyer program - opening a new front in its war with arch rival Virgin Australia.

The Qantas loyalty program has been revamped to give Jetstar passengers the ability to earn and burn points, a move designed to appeal to the budget-conscious suits market.  A new alliance, like the one Qantas has with Woolworths, has been struck with Optus where its subscribers will be able to generate frequent flyer points.

Qantas chief Alan Joyce said the changes will give the airline a competitive edge on other carriers.

Under the changes Jetstar’s fare structure will change.

StarClass - the carrier’s equivalent of business - will be replaced with a full business product, a move that industry observers say is clearly aimed at Virgin Australia’s attempt to lure small and medium businesses.

And so the Airlines Wars continue.

NEW FEES for checking in with humans!

Beginning in November Jetstar will become the second Australian airline to charge customers to be checked-in by a person behind the counter, rather than doing so online, at self-service kiosks or using SMS boarding passes, according to a report in The Australian.

The move is part of an effort to push all customers to use electronic self-service tools and cut costs, the report said.

Passengers wishing to use staffed counters to check-in will be charged a fee expected to be between $5 and $10 beginning November 1, adding Jetstar to the list of worldwide airlines targeting staffed airport customer service desks as a means to cut costs and reduce congestion.

Tiger Australia, which charges a $20 fee for checking-in with a staff member, became the first Australian airline to introduce such a fee. Virgin Australia and Qantas, which owns Jetstar, say they have no plans to introduce such a fee.

Jetstar has also set-up an SMS check-in service that allows passengers to confirm their flight details via text message, according to the Australian Financial Review.

In what the newspaper said was a “world first”, passengers are automatically checked-in 24 hours before their flight leaves and can print out their boarding pass at the terminal simply by scanning their phone at an IBM designed departure kiosk.

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Qantas US Australian Walkabout Pass

In Partnership with American Airlines

A PROPOSED alliance with American Airlines will cut fares to almost two-thirds of US destinations and $700 off the cost of flying to four major ports, Qantas has told the Australian Competition & Consumer Commission.  

The airline says its proposed joint business arrangement would also allow a “Walkabout Pass” for those travelling to the US from Australasia on joint Qantas/AA flights.

A table included in the airline’s submission to the ACCC shows Philadelphia, Minneapolis, Indianapolis and Detroit as the cities that would benefit from a $700 reduction on current fares but shows Seattle, Washington DC, New Orleans and Boston as destinations that would see lesser price cuts.

“The refined structure will be simpler to manage and communicate to consumers and trade,” the submission says. “It will result in fare reductions for 64 per cent of US destinations and will allow a broader offering of discounted tactical fares to an increased number of destinations as well as expanded stopover options between gateway cities in the US and end destinations.”

The joint business agreement, flagged in January, would be similar to the long-standing joint services agreement Qantas has enjoyed with British Airways and comes a day after Virgin Australia’s alliance with Delta Air Lines received a provisional tick from the US regulator.

As well as more competitive fares and new products, the airline says the joint business arrangement would allow joint strategic planning and management of services across the Pacific as well as in North America and Australia-New Zealand.  Other benefits would include improved marketing, flight schedules, frequent flyer offering, frequencies and connection times.  Qantas is making its application from a position of competitive strength, with 46 per cent of passenger market between Australia and the US when Jetstar flights to Hawaii are included.

Although Qantas’s market share has fallen from 58 per cent in recent years, it is more than double the 17 per cent expected within two years for the Virgin-Delta alliance and an estimated 22 per cent for United Airlines.  According to AA, it has no intention of entering the route and the airlines argue this means it is not a true competitor and there is no detriment to competition from the deal. They argue that an enhanced relationship is needed to reinvigorate competition and say they would continue the existing codeshare if the alliance is rejected, but it would have “inherent limitations”.

They note also that they would be the only direct carriers on trans-Pacific routes that are not part of an immunised alliance.

“Without immunity, the applicants would continue to act independently and duplicate each other’s marketing and sales effort while offering an inferior network, schedule, capacity and frequent flyer offering and a less efficient procurement process,” it said.  The airline wants the agreement to apply to services between the US and Australia/New Zealand, within the regions and beyond to third countries such as Canada and Mexico.

It said the deal would result in significant benefits to consumers and allow the airlines to maximise the benefits of Qantas services to AA’s major hub at Dallas Fort Worth. Four services a week start from Monday.  Qantas has filed an application for authorisation of the joint business arrangement with the ACCC and will file an application with the New Zealand Minister of Transport. The US Department of Transportation will review the agreement.

At present, Qantas offers 41 scheduled round trip flights a week between Australia-New Zealand and the US.

These include 33 weekly flights to Los Angeles, four weekly flights to Honolulu and the four weekly flights starting next week to Dallas Fort Worth. Qantas also offers six weekly flights to New York via Los Angeles.

To read more unique travel stories from Paul Blazey go to: Urban Globetrotter http://dld.bz/ZrBK

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Flight of fancy? A close look at the new Virgin Australia

A week on from the fan fare and hype in Australia for the re-branding launch of Virgin Australia. Urban Globetrotter takes an in depth look at the Virgin Australia outlook.

SIR Richard Branson landed last week with a pocket full of notes which he believes are the secret to becoming Australia’s best airline.  His personal assistant has the unenviable task of making sense of the scribbles Sir Richard takes when talking to his staff on flights around the world.

This pocket full of scraps has led him to installing new premium economy seats across the fleet which he believes to be “the most comfortable in the world”, food designed by celebrity chef Luke Mangan and in-flight gadgets galore.  All of which can be found on the airlines new A330-200 and Boeing 737-800.

“I flew in from America this morning and I have a pocket full of notes on little things like the new uniform and how we made it more comfortable,” Mr Branson said at the launch of Virgin Australia. “We make sure all these little things are right for the staff and to make sure they are 100 per cent happy.”

Virgin Australia CEO, John Borghetti, said it is the airline’s crew who decide ultimately what passengers will experience.  “We have consumer feedback, emails, random surveys but one of the most important elements of information is the crew because they see things every day and they know what works and doesn’t and what should be changed,” he said.

“The majority of the changes we have made have come from the crew. “We talk about the cabin interior and making seats bigger and more comfortable, but above all I think what the people want apart from a smooth operation is service – a friendly, genuine, engaging service and that’s something we have got and will continue to provide as we have but step up one more level, which we will,” he said.

Virgin’s much touted new service and “luxury” additions have raised questions about another increase in the cost of airline tickets, but Sir Richard counters with the belief that a better business class offering is the secret to keeping economy travellers happy.

“By capturing the business traveller on Virgin Australia, that will enable us to afford better seats in economy and it we can then also address the fare problem and be more competitive,” he said. So it seems that a premium economy will offset a normal economy when it comes to flight tickets in this very crowded airline market.

John Borghetti has had something of a bumpy journey since he took the helm of Virgin Blue last year, with Queensland’s floods and cyclone, stratospheric jet fuel prices, flight delays and regulatory rejections making for a challenging start to his tenure. It does seem that finally the pieces of his strategy are falling into place.

A key plank of the Borghetti strategy of shifting his airline – rebranded Virgin Australia last week – slightly up-market to compete with Qantas for business travellers has been to create a virtual international network through alliances with other, bigger carriers. There are a number of rationales for the strategy, which is broadly aimed at boosting the volumes and importantly the yields of passengers carried on its domestic network, which today is too heavily oriented to the leisure end of the market in massive competition with Tiger Airways and badly over-exposed to the Queensland market. Virgin needs premium airlines in Asia so that it can provide corporate travellers with a network that links Australia to Hong Kong, Shanghai and Tokyo.

 ASIAN FOCUS

Its plans for Asia could include tie-ups with several airlines. The Virgin Australia chief executive John Borghetti said the deal’s approval allowed Virgin to focus on the last plank of its international strategy aimed at cementing alliance partners in Asia by the end of this year.

VIRGIN Australia will step up efforts to find airline partners in Asia after finally securing the rights to form an alliance with Delta Air Lines on the Australia-US route.  In a timely boost for the Australian airline, the US air regulator has reversed its decision to block the joint venture with Delta because the airlines had made ”substantial changes” to their initial application. Virgin made a ”very small profit” on the Australia-US route in the first half of this financial year, but Mr Borghetti hinted that it had fallen back into the red since fuel prices soared early this year.

The deal is part of Virgin’s strategy to snare a bigger share of the corporate travel market from Qantas.

There is a gap in Virgin Australia’s coverage, which Borghetti freely acknowledges. He needs at least one more alliance of some kind in Asia. He says there will be something in place before the end of this calendar year.   ”Right now what we are focused on is bilateral alliances. The only part missing is Asia,” he said.

Industry insiders consider Malaysia Airlines or Japan’s All Nippon Airways as likely alliance partners. Singapore Airlines would be the best bedfellow but is less likely, especially with the new announcement of Qantas’ intentions to set up a rival premium Asian Airline.

Qantas, of course, through its Jetstar brands, has a big head-start on Virgin Blue in Asia, with one of the bigger and faster-growing networks in the region. At the very least Borghetti would want to be able to shadow some of Jetstar and Qantas’s more important routes into and within Asia.

ALLIANCES

From its original launch Virgin Blue’s strategy has been to try to have a presence on as many of Qantas’ profitable or strategically valuable routes as it can across the pacific.

The alliance with Air New Zealand, however, (an alliance initially opposed by the Australian Competition and Consumer Commission, which subsequently changed its stance) also allows the allies to co-operate to manage capacity better and improve the economics of an over-serviced route.

A similar relationship, for similar reasons, with Delta Air Lines on the trans-Pacific route was also rejected by the US Department of Transportation on anti-trust grounds, before it, too, changed its mind. Today Virgin Blue announced the department planned to grant the allies anti-trust immunity.

Yet another alliance with Etihad Airways, has had a smoother passage, perhaps because Virgin had no capacity on the Australia-Middle East-Europe routes that Etihad flies.

With its three alliances now approved (the US approval needs a final confirmation) Borghetti ought to get some synergies from the trans-Tasman and trans-Pacific co-operation but he now has alliances that connect his business to both Europe and North America – the deal with Delta will give him access to more than 200 destinations in the Americas.

Virgin Australia will be able to connect its passengers with Delta and Etihad’s and Air NZ’s networks and enable them to earn frequent flyer point, and vice verse. Now that it has the right to use the Virgin brand for its international services, Virgin Australia has significantly increased the potential of its trans-Pacific operations and can really step up the fight against its bigger and financially more powerful competitor Qantas as Virgin is a highly recognised brand in North America. Borghetti it should be remembered is a Qantas veteran and knows his competitor inside out. By seeking to add another dimension to the basic strategy and use an up-market international product he is hitting Qantas right where it hurts.

The Qantas international frequent flyer program is highly profitable and if Virgin can offer a similar program across its new alliances and a re-worked domestic product to boost his volumes of business class travellers it will undermine the yield premium Qantas enjoys because of its dominance of the business segment.

It may take some time, but even relatively modest shifts in business travel market share could have quite material effects on Virgin Blue, and Qantas. Which as promised, will ultimately lead to better Airline ticket prices for all Virgin Australia customers.

The New Virgin Australia at a glance:

  • New look Aircraft Inside and out.
  • Upgraded Premium Seating, Gourmet Menu, Uniforms and In-flight Entertainment.
  • Remodelled Premium Lounges and Limousine services.
  • New Expanded International Routes through Alliances.
  • Improved customer services and ammenities.

So how does this fit with you? Some have called this latest move the last throw of the dice for Virgin in Australia, who have been in financial trouble for some time.  Will you be tempted back to Virgin Australia for extra amenities even if you have to pay a little more?

What are your thoughts? Just drop us an email at: urbanglobetrotter@gmail.com

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Qantas launches new Platinum Frequent Flyer Program

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Qantas Airways has announced a new partnership Singapore Telecommunications Ltd subsidiary Optus as part of a revamp of the national carrier’s frequent flyer loyalty program.

Under the agreement, customers will be able to earn frequent flyer points through purchasing Optus products and services.

A number of Optus products and services will also be purchasable though redeeming Qantas frequent flyer points.

The expansion of the frequent flyer program will also see more points made available through Jetstar services, and the addition of a new, highest tier of frequent flyer recognition, “Platinum One”.

“We are delighted with the prospect of welcoming Optus to our stable of partners and are excited about the opportunities this presents…,” Qantas chief executive Alan Joyce said.

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The actual launch date and details of the rate at which customers will acquire points remains under wraps but Optus will be a key Frequent Flyer partner, alongside companies such as Woolworths. Four hundred brands in total are part of the program.

Qantas chief executive Alan Joyce said the company’s research had shown its Frequent Flyer members were looking for new ways to earn additional points.

“We think this will once again set our program apart from the rest,” Mr Joyce said.

The company also announced a new level of platinum membership, Platinum One, targeting ultra-frequent flyers of the ilk of the Ryan Bingham character played by actor George Clooney in the film Up in the Air, who fly at least three times as often as the Platinum average, or as much as 60 times a year.

Optus chief executive Paul O’Sullivan said Frequent Flyer members would be able to redeem Optus products for points as part of the alliance.

Marketing chief Mike Smith said the program was an extension of other transactional rewards arrangements the telco has in place, such as offering movie tickets.

“We believe that it’s vital that we find ourselves differentiated in the area of customer experience,” Mr Smith said.

Both Qantas, which has 8 million Frequent Flyer members, and Optus, which has 9 million customers, are expecting the alliance will attract new customers and well as encourage additional spending from existing customers.

“I think this will be one of the cornerstone pieces of work we’ll do this year in terms of talking about reasons you should come and join Optus,” Mr Smith said.

Others include marketing the FetchTV alliance to provide an internet protocol television service, which was announced last week.

Qantas’ Secret New Asian Airline?

Qantas Asian expansion plans on a crash course with unions

In what has come as a surprise recent development and cost cutting measure Qantas Airways is planning to launch a premium airline based in Singapore. The move is aimed at boosting Asian growth and circumventing staff costs putting the airline on a crash course with its Australian employment unions, according to a news report released by the Australian Financial Review on Friday.

According to the secretive plans, Qantas would base as many as 20 aircraft in Singapore to secure a lucrative Singaporean airline licence. The nature of the aircraft are said to be narrow body A320’s which suggests that the plan is to focus on servicing the short haul Asian market pitting the airline directly against Singapore Airlines and Cathay Pacific who currently dominate the premium sector. It is understood that the new venture is not allowed to be called Qantas but will have the same look and premium feel as the current International services operated by the Airline.  

Qantas has denied reports it had applied for an air operator’s certificate in Malaysia but said a range of options were on the table to try and recover its dwindling international market share.

However it has been confirmed that an internal team of employees has been set up to focus on how to reverse the airliner’s recent struggles, and have sought ways to duplicate the successes experienced by the low-cost carrier, Jetstar, that Qantas launched in 2003.

The new Asian airline would take direct aim at Singapore Airlines and Cathay for premium Asian market share, and risks inflaming strained relations between Qantas and its unions over the company’s plans to develop a lower-cost offshore base in Singapore with a local partner to increase flights to underserviced Australian hubs, such as Adelaide and Perth according to the AFR. The base could also be used to lunch an expanded European network.

“A project team has been established to look at Qantas’ international product and service, possible new routes and ways to reinvigorate our offering,” an airline spokesman said. “The team is considering a range of options but no decisions have been made about the direction Qantas will be taking at this stage. Recent media stories are purely speculation and based on rumour.”

The rationale behind the new offshoot is clear: Qantas needs to cut costs and expand into Asia without losing its high quality profile by damaging its brand. By moving its major International operations to Singapore it will be able to dramatically cuts costs, most notably in the area of staff where it is suggested that it will employ rotational regional crews. Flights for instance from Singapore to Bangkok would be staffed by Thai crew, where as a flight to Australia would be serviced by a Singaporean crew. This sets up an enormous battle with Australian unions and has even drawn the Prime Minister into the discussion.

The move has angered unions which were already threatening industrial action at the carrier. Aircraft engineers on Thursday called off plans to strike on Friday but there are plans for further industrial action next week.

Qantas says its international business has not been meeting expectations and market share had fallen in recent years but says it is too early to offer any details on what a taskforce has recommended to fix the airline’s ailing international operations “severe structural challenges”.

Qantas has a low-cost subsidiary Jetstar Asia which operates out of Singapore.

Look out for a more detailed report in the coming days.

To read more unique travel stories from Paul Blazey go to: Urban Globetrotter http://dld.bz/ZrBK

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Tiger’s wings about to be clipped?

What’s going on with Tiger? 

A Special Report by Urban Globetrotter

Singapore__kl_09_269 After bursting onto the Australian domestic air travel scene just a few short years ago, budget Airline Tiger Airways has never been too far away from controversy and always elicits a love or hate response from travellers.

From the beginning and especially in more recent times, Airline industry sources have claimed the sector has been rife with rumours about Tiger which is owned by Singapore Airlines.

The low-cost airline has triggered a price war with Qantas and Virgin forcing them to drop their domestic fares by 30 per cent.  Since its 2007 entry to Australia, Tiger has targeted the tourism market and undercut its rivals with a range of “special” fares including 1c flights. This has been a boon for the local market and is a far cry from the completely and totally uncompetitive duopoly of the 1980’s when the choice was either Qantas or TAA.

However, Tigers introduction has also raised concerns that its profitability was taking priority over passenger safety and pilot training. Tiger has consistently ranked as the worst of the major airlines and had just a 72 per cent “on time” record for last year.

READ THE WHOLE REPORT AFTER THE JUMP

Read More

World’s Travel Industry gets ready for new wave of Chinese tourists

China_sydney_ads
China’s growing middle class is leading to a scramble among airlines, airports and tour operators keen to cash in on this trend.

This year, China’s outbound departures are predicted to top 65 million after reaching over 57 million in 2010, according to a report from the China Outbound Tourism Research Institute (COTRI). The UN World Travel Organization (UNWTO) estimates that there will be 100 million Chinese outbound trips by 2020.

 International airlines that haven’t already established direct routes to China are rushing to do so such as Air Mauritius and South African Airlines which will become the latest to set up links with direct flights to Shanghai and Beijing respectively, as early as July.

 But airlines are not just targeting China’s major cities for direct routes. Australia and New Zealand are trying to encourage airlines to establish new links between tourist destinations in those countries and some of the China’s tier 2 cities.

China_southern
 China’s largest carrier, China Southern Airlines, launched its first direct flight between the bustling business city of Guangzhou in the Pearl River delta and Auckland, New Zealand earlier this month. Australian cities Perth and Cairns are also in talks with airlines to create direct flights.

Speaking from the China-Australian Business Summit in Beijing, Tourism Australia Managing Director Andrew McEvoy told CNBC.com that Australian airports are actively seeking out new capacity to get more direct access to the fastest growing travel market in the world.

“It’s an important market, because there’s a lot of mix here — 167,000 students, a whole bunch of visitors, and business people,” McEvoy says.  “We’re in the time zone, so it’s terrific to be in a region that’s growing like that.”

In 2010, over 450,000 Chinese visitors spent $3 billion in Australia, which was 20 percent more than the year before.

Growing Travel Demand

Pacific Asia Travel Association’s (PATA) Director of Strategy Management, Kris Lim, says that in spite of a number of negative global events such SARS, the global recession, and H1N1 in the past decade, the demand for air travel to and from China has continued to grow at a rapid pace.

“What we’re seeing here is that for any destinations within Asia-Pacific, and outside of the region that is intending to build their tourism sector, the connection to China will be a very important element,” Lim says.  “Inbound is equally important — China has become a centre of commerce and business. There should be more capacities into China as their economy continues to improve.”

Globally, China has increased its travel market share to over 4 percent in the past decade. With some Chinese airlines betting big on Destination Australia.

Some airlines are testing the waters with charter flights before launching direct routes. Earlier this year, China Eastern Airlines launched the first-ever chartered flight to Hawaii. Two months, and three chartered flights later, the airline is now seeking approval from China’s aviation regulator for regular direct flights to Honolulu.

Burj2
Europe and the Middle East are also trying to lure Chinese tourists with the promise of fashion, art and culture.

Dubai has become a hot spot for Chinese tourists after the emirate received “approved destination” status from the Chinese government in 2009. Hotels such as the world-renowned Burj Al Arab have hired a number of Chinese speaking staff, created brochures and programs in Mandarin and added Chinese cuisine to their menus. During this year’s Chinese New Year, almost 80 percent of the hotel’s guests were from China, says Burj Al Arab operator Jumeirah Group.

While last week, Air China announced the launch of a direct flight between Beijing and Milan starting June 15, along with a new service to Athens in May.

Large-Scale Group Travel

Executive Chairman of the Centre of Asia Pacific Aviation (CAPA) Peter Harbison says the industry has never seen group travel on the scale in which Chinese tourism operates.

“Some of those groups that go to Europe are 12,000 strong, and when you’re sending a group of 12,000 — you have tremendous buying power,” he says.

Tour operators can only send groups to countries that fall under China’s Approved Destination Status (ADS).

Meanwhile in Europe, academic institutions are offering courses on Chinese culture for tour guides and travel agents, Lim says.  But, he says it will take a bit more time before countries are better able to cater for Chinese tourists, like the Japanese before them.

So how will Destination Australia cope with this influx of visitors, are we ready?

What’s your take?

Got something to add? Then please do…just drop us an email at: urbanglobetrotter@gmail.com

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Virgin goes from being blue to Australian

Virgin_blue
In one of Australia’s worst kept airline secrets and as a part of John Borghetti’s attempt to transform Virgin Blue into a market leading Australian Airline, Virgin Blue Holdings Ltd., the Australian carrier backed by Richard Branson, will begin flying under the name Virgin Australia, as it tries to break Qantas Airways Ltd.’s hold on Australia’s business-travel market.

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The new announcement comes today that the carrier will operate under the new name domestically from today and on international routes by the end of the year, it said in a statement. The Brisbane-based company, renamed Virgin Australia Airlines Pty, is also replacing its red-and- white logo with a largely silver one. The chief executive, John Borghetti, has made the strengthening of the airline’s brand one of his key priorities since taking over last year from its co-founder, Brett Godfrey.
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Shedding the Virgin Blue name, a reference to Australians calling redheads “Bluey,” highlights the carrier’s push to challenge Qantas’s 90 percent share of domestic corporate air- travel amid rising competition in its traditional budget market. Virgin Australia will offer onboard leather seats, a revamped inflight menu, new lounges and an overhauled frequent flyer program to win more lucrative passengers. While the staff have all new uniforms as well.

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One of the challenges for the company had been to emphasise to consumers that its four brands – Virgin Blue, Polynesian Blue, Pacific Blue and V Australia – were one and the same. But despite today’s renaming of the domestic business, the airline may have to wait some time before it can use the Virgin moniker on its aircraft which fly overseas routes. The airline will still need to enter negotiations with joint venture partner, the Samoan government, to rename its offshoot Polynesia Blue.

“The only reason they would want to move away from the playful, joyful image of Virgin Blue is if the business market doesn’t like it,” said Stephen Holden, associate professor of marketing at Bond University in Queensland. “They might change, go more upmarket and become a lot more like Virgin Atlantic.”

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Jetstar, Tiger Air

The Virgin carrier’s push to win business travelers has already seen it abandon much of the low-cost model it used when it began flying in 2000. The airline has moved away from the budget market as the growth of Qantas’s Jetstar unit and Singapore Airlines Ltd.-backed Tiger Airways Holdings Ltd. has helped push down coach-class fares in Australia. Discounted domestic economy ticket prices fell to a record low in January, according to Department of Infrastructure data.

That competition, along with natural disasters and rising fuel prices, has left the Virgin airline expecting its second annual loss in three years. The carrier may post a loss of as much as A$80 million ($87 million) in the year ending June 30, it said in March.  The airline’s shares were unchanged at 28.5 Australian cents at 10:30 a.m. in Sydney trading. They’ve dropped 46 percent in the past year, more than double the rate of decline for Sydney-based Qantas. Branson owns 26 percent of the carrier, while Air New Zealand Ltd. holds 15 percent.

Etihad_jet
The new name may also help Chief Executive Officer John Borghetti win customers from overseas as Virgin Australia works on expanding its international sales network through tie-ups with Delta Air Lines Inc., Abu Dhabi-based Etihad Airways and Air New Zealand.

“The Virgin brand has been underplayed, particularly internationally,” said Peter Harbison, managing director at Sydney-based industry consultant Centre for Asia Pacific Aviation. “I don’t think it’s going to lose anything by dropping ‘Blue’.”

Virgin Limits

The company was only able to use the Virgin Blue name on domestic flights because of restrictions linked to Singapore Air’s 49 percent stake in Virgin Atlantic. Its long-haul unit is called V Australia, while flights to New Zealand are flown by Pacific Blue. The carrier also has a venture with the government of Samoa called Polynesian Blue.

Qantas last year began a revamp of its business-class services, including lounges, cabins and food to help fend off competition. It’s also adding Airbus SAS A380 planes and boosting an alliance with American Airlines to help win international flyers.

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The ‘Virgin Blue’ name was chosen after a radio competition, with the winner getting two return trips each year for life. Other suggestions included Rooted Airlines and Virgin Down Under, according to a press release. The carrier began flying the same year with a fleet of two planes and A$10 million of seed capital.

It’s been a very rough ride lately for Virgin will all sorts of issues and problems coming up, so it’s now time to deliver on the promise.

Do you think that Virgin Australia can take on Qantas?

See more about Virgin’s battle to reinvent itself:

http://urbanglobetrotter.posterous.com/virgin-blue-hits-week-long-turbulence

http://urbanglobetrotter.posterous.com/virgin-blues-overhaul-grounded

See more AIR WARS stories:

http://urbanglobetrotter.posterous.com/virgin-blue-on-the-money

http://urbanglobetrotter.posterous.com/tiger-takes-on-air-asia

http://urbanglobetrotter.posterous.com/coming-soon-to-a-plane-near-you-text-tweet-mi

http://urbanglobetrotter.posterous.com/australian-airline-wars-hot-up

What’s your favourite low cost airline?

Missed anything? Drop us an email at: urbanglobetrotter@gmail.com

Join the conversation over on Twitter!

Futuristic Airline seat only for the game

Future_air-seat
Gamers, it’s time to get excited. The prototype for a new aeroplane seat designed with you in mind has been revealed.

The concept seat, called ‘NFW’ (not for wimps), allows for serious tech-heads to have a 3D experience whilst plugged in (with seat belts fastened, no doubt).

According to British manufacturer Factorydesign’s director, Adam White, “NFW is designed to appeal to customers who would rather spend their time on long-haul flights locked in a gaming or viewing experience rather than dropping off to sleep.” Elaborating further: “NFW is a marmite seat – but love it or hate it it has created the stir required, and for us carries the important message about change.  It is time.  There is a new generation of younger Business/First travellers who relish a few hours uninterrupted time to play PS, eat a snack of sushi and chill with the latest AV content.”

Whislt the NFW hasn’t yet been snatched up by any airlines, so it may be a few years before you’re given the choice of cattle, business or Bioshock, but White hopes that “certain, more adventurous airlines” will strip out a few seats from their business class cabins to allow for these light-weight Kevlar contraptions. New seating like this does throw up an interesting point though. If it takes up more space but is pitched to younger travellers who want to only sit up, how will it be priced? Will you end up paying a premium to be seated?

Nfw2
What’s your take, are you game enough?

The design release was a part of the recent Aircraft Interiors Expo, which took place in Hamburg, Germany.

You can see more airline seating stories from Urban globetrotter right here:

All new Firstclass Air Beds v’s All new Cattle Class Seating.

See more articles like this in Getting There.

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The 5 Step Guide to Travelling Like a Pro

How To Travel Like A Pro

Part Two of A Travel Pro’s Guide To Touring The World In Style.

Etihad_jet So you’ve worked out how to get the best Airline Tickets & Seats, so now it’s time for the departure.

You know, travelling in style is the way that most people see themselves travelling these days and it is definitely possible, but for the majority of the time, that plan goes completely wrong because we get caught up in packing, arranging documents and finances and forget to concentrate on what it is that makes travel so important to us – taking a moment to chill out and relax so as to enjoy the journey and the destination with a minimal amount of stress. Travelling in style is the epitome of that for a number of reasons.

Travelling in style is all about planning ahead of time, taking care of yourself and taking the time to do so. Very few people find that they can take their time when heading to the airport because, for the majority, it is a mad rush to pack and grab everything they need and then get to the airport on time. It is possible though. There are several ways you can achieve this, and all require you to take straight forward but certain steps:

Shangrila-world_squidooStyle Step One: Weather watch! Check out the essentials of the destination that you are heading to.

For instance, if you want to travel in style then you cannot land in a mini-skirt and flip-flops if it is freezing cold and raining at your destination.  So keep a watch on the weather forecast in the week before you fly because it will constantly update and give you a great idea on what to expect. After this, buy a map and travel guide or have Google Earth and Maps loaded to your Phone, Laptop or Tablet ready so that you can easily find your way to your hotel when you get there. Make sure that you’ve confirmed you arrival be email, ensuring a smooth check in and for those that have that little extra to spend, arrange private transport ahead of time creating a seamless transition from airport to lodging.

Qasr-resort2Style Step Two: Plan ahead some more! The departure. After carefully working out your itinerary and creating an easily accessible running sheet for it, start planning your get away the week before you are due to fly. Be sure to also include a few key phrases on your running sheet if travelling to a non English speaking country.

Make a list of what you are to pack and lay out the outfit that you are to wear on the flight the night before you board the plane. It does not matter where you are travelling to, just as long as you remember to include all of the essentials in your carry on. This is usually along the lines of: a book or eBook reader, a music player of some sort, or simply a Tablet that does it all, an eye mask, facial wipes and something to snack on and some gum for when the plane takes off and lands so your ears do not pop! Make sure that your carry bag is light along with its contents but also contains a change of underwear just in case your main luggage gets lost! This way, you don’t get caught short. Remember to set your Phone’s network settings to International Roaming.

Travelling in style is all about being prepared and making sure that you can handle anything that your trip throws at you!

Singaporea380suite Style Step Three: Layers and Pockets. Wear layers when you board the plane if you want to be adaptable to changing conditions throughout the flight.

By wearing light and breathable multiple layers with pockets, when it’s hot then you can strip off the layers, but a cold plane at altitude is nobody’s friend and encourages bugs and colds to spread to the vulnerable. As a result, you want to be warm! If you wear layers then you also escape using the airline blankets as well, the pockets help you store more items conveniently.

Wearing appropriate clothing for your journey helps you look good and feel good all in one go!
LuggageStyle Step Four: Packing it all in. Choose the right hand and main luggage and pack it properly.

Whilst luggage doesn’t maketh the man, your choice of luggage can certainly make things easier for you. Some people do see their choice of luggage as somewhat of a status symbol, the main point here is to be appropriate for the journey that you are going on. Always try to travel light as possible. That means get the most durable, lightest and secure luggage that you can find. Multiple pockets and expandable sections really help.

When it comes to size, it does matter, smaller is better! Just try to take the least amount possible in the smallest luggage possible. If you plan on shopping up a storm a great trick is to put all your luggage in a smaller suitcase, packed inside the next size up, that means you take on piece of luggage on the way and bring two back. When you do this, please consider the cost of extra luggage and make sure you pre book it, otherwise it can cost you a fortune and that’s a last minute surprise you don’t need at the check in counter on your way home.

Security is really important, remember to use locks, plastic id tags or you can get your luggage plastic wrapped at some airports! Always use a method to personally identify your luggage so it’s easy to pick out on the carousel.

Sing3 Style Step Five: Finally enjoy it! Travelling in style should be fun! Air travel should not be a chore, but it will be if you view it that way! Travelling should be about adventure, so be determined to make it one!

Set out with the right attitude, be prepared and be flexible. Not everything will go your way but if you follow these steps you’ll make your travels as stress free as possible.

Pro Tips:

Set the alarm and pre book your taxi the night before giving yourself plenty of time to get to the airport and check in.

Always take the E-Check in service if you can, it cuts your waiting time down in a big way.

Load up on vitamins before you go, especially vitamin C to boost your immunity.

Got anything else to add?