A series of recent setbacks has not deterred Virgin from committing itself to expansion in the southern hemisphere’s airways.

John Borghetti, the recently appointed head of Virgin Blue, has denied that the airline could abandon its strategy of attempting to break into the Australian-based corporate market – dominated by the national carrier Qantas.

Plans have been thrown into question following a series of expansion announcements of their own from Qantas and it budget arm Jetstar. There have also been confirmation from regulators in the US and Australia that they would be blocking the proposed alliances that Virgin Blue has been seeking with Air New Zealand and Delta Air Lines. These partnerships are seen as bolstering the appeal of Virgin Blue to the business market, and the loss of exposure on the lucrative US – NZ routes is sure to be costly.

Mr Borghetti, however, insisted that the Virgin Blue strategy was sound, saying that no concerns from investors had been made should the regulatory approval not be granted. Speaking at a business lunch in Sydney, Mr Borghetti said it was all about bringing competition to Australian the corporate market, adding that this was a class of travel which has been monopolised. Virgin Blue hopes to capture up to 20 per cent of the business market, and Mr Borghetti said the group was hopeful that the decision could be overturned once regulators were aware of the huge consumer benefits.