Virgin Blue considering further capacity cuts and job cuts

Virgin Blue stated at the end of May-2009 that it was considering increasing planned capacity cuts for the new financial year to 5.5%, commencing 01-Jul-09. The LCC previously planned to cut capacity by 2.4%, but according to CEO, Brett Godfrey, cuts “need to go further as demand remains weak”. Mr Godfery added that the cuts would result in “taking out some flights”, but would not disclose which routes would be affected. [1683 words]

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This report contains the following subheadings:

• Predicts difficulty in recovery of V Australia investment
• Canvassing investor support for new share issue
• Expands domestic route network
• Tokyo service possible
• Macquarie recommends partnership with Air New Zealand
• Search for new COO commences
• Adopts Navitaire New Skies platform
• Joins Aviation Global Deal Group
• Launches corporate travel and redundancy refund programs
• Signs partnership agreement with Con-x-ion

This report contains the following charts and tables:

• Sydney-Los Angeles capacity share by carrier (week commencing 06-Jul-09)
• Virgin Blue domestic destination map: Jul-2009