“We are not creating clones and we are not creating straitjackets for people,”
said Mark Hassell, from Virgin Australia. “We want to retain of the spirit
that exists within Virgin service style and service behaviour but put it in
a context that is equally relevant for business-purpose and corporate
travellers.”
Though Qantas has long dominated the corporate travel market in Australia,
Virgin has recently begun to move away from its focus on holiday travellers
and youth to compete for high-yield business travellers.
The airline, founded in 2000 by Sir Richard Branson, has increased its
proportion of business travellers in the past two years from 10 per cent to
18 per cent.
But the business class war between the airlines has led to a 40 per cent drop
in prices in the past year and a 20 per cent drop in the past month.
The airline’s chief executive, John Borghetti, said at the weekend that Qantas
has had limited domestic business competition for more than a decade since
the demise of the large domestic carrier, Ansett.
“We deliberately entered that market,” Mr Borghetti said. “We knew the fares
were very high and we could bring competition at lower fares with better
service. That’s exactly what we have done and I think you’ll find that the
fares have dropped more than 20 per cent.”
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