Virgin Australia to position itself as mid-market airline, new CEO says

Virgin Australia will position itself as a mid-market airline targeting around a one-third share of the domestic aviation market under the ownership of US private equity firm Bain Capital, the airline’s new chief executive said on Wednesday. Virgin’s shift from being a full-service carrier will mark the end of a decade-long arms race with Qantas for corporate travellers involving lavish airport lounges, celebrity chefs and lie-flat business seats on longer domestic flights. “Australia already has a low-cost-carrier and a traditional full-service airline, and we won’t be either,” new Virgin Australia Chief Executive Jayne Hrdlicka said, in reference to Qantas and its low-cost offshoot Jetstar. “Virgin Australia will be a mid-market carrier appealing to customers who are after a great value airfare and better service.” The country’s second-biggest airline said it would introduce new on-board food purchase options in economy class but would retain business-class seats and airport lounges in major cities. It would also continue to include checked baggage in its economy-class fares. In-flight Wi-Fi and entertainment remains under review.<br/>