How Virgin Australia is beefing up transtasman battle
Weeks out from its breakup with Air New Zealand, Virgin Australia says it ready to roll out its “full armoury” in what is shaping up as a three-way battle over the Tasman.
The Australian airline is also trying to establish more of a market presence here after being quiet for much of the alliance with Air New Zealand that stretched more than six years but will end on October 28 after the Kiwi carrier opted to quit the partnership.
Virgin has since upped its marketing and, following a search for a New Zealand beef supplier, the airline yesterday announced Hinterland Foods from Moawhango in the Rangitikei district had won the “Got Beef” campaign and would supply its meat to the airline for inflight meals.
Virgin launched the campaign to promote its full meal service as part of all tickets across the Tasman in a not-so subtle dig at its former partner teaming up with a Silicon Valley firm to supply synthetic meat to some premium customers.
Virgin also announced it would roll out mobile self service kiosks at Auckland Airport to speed up checkin. Several other airlines, including Air New Zealand, use the technology.
Virgin Australia group executive, Rob Sharp, said the kiosks follow a roll-out in Australia.
He said crew had been fully trained for the full service inclusive food offer which replaces meal options similar to those through Air New Zealand’s “seats to suit” where passengers pay for food. The Virgin offer will be similar to Qantas and both airlines carry checked-in bags as part of the ticket price.
Virgin announced capacity increases of around 15 per cent immediately after the bust up with Air New Zealand in April and has since announced a seasonal service between Auckland and Newcastle and extra flying across the Tasman over the Christmas holidays.
“We’re ready to come in and compete with our full armoury come October 28,” said Sharp who is a speaker at next week’s Centre for Asia Pacific Aviation (CAPA) two-day corporate travel event in Auckland.
He said his airline was satisfied with its capacity expansion (largely matched by Air New Zealand) and doubted there would be much more.
“We’re not looking to throw in capacity for capacity’s sake, that’s typically what triggers cut throat comments. With fuel prices going up airlines are looking for efficiencies and I think there would be a fair bit of caution about throwing aircraft into a market given that backdrop.” said Sharp.
“The competition will be about product and service, not throwing a whole bunch of capacity at it and getting into pricing wars, that’s not our intention here.”