by Andy Hemmington November 11th, 2010
Australian low-cost carrier Virgin Blue has engaged in a marketing war with rival Qantas.
Amid the effort, Virgin Blue is attacking the performance of the Australian top carrier and has enacted an advertising campaign focused on sponsoring a number of major sporting events.
Reports say that Virgin Blue chief executive John Borghetti is working on a deal with Australian soccer officials. It’s also said that he has plans to target upmarket passengers looking to travel in business class.
The change will require the airline to update and reconfigure its fleet of aircraft to accommodate the new premium class seating section. Virgin Blue’s cabin crew will also receive updated work attire.
Mr Borghetti has not yet been available to comment on the move however sources say he is determined to take Qantas head on with the new campaign.
In June of this year, Borghetti said at the Australian Stockbrokers’ Association conference that Virgin needed to step up its game in the wake of a drop in profits.
He had said earlier, just two weeks into his role as chief executive, that the carrier’s profits would plummet from $80 million down to only $20 million for the first half of the year.