26 August 2010

Etihad and Virgin Oz - Best Mates!

Two Old Boys of Aussie aviation have come together to create a somewhat interesting pact.

With an Aussie CEO at the helm of Etihad - James Hogan, EY has been looking to crack some of the stranglehold Emirates has on the lower Kangeroo market. With a significant amount of lift between DXB and across Australia the EK Southern Hemisphere network includes a lot of local and one stop traffic. This has been siphoning traffic away from BA/QF steadily for years.

The radical re-shaping of Virgin Blue and other members of the Virgin Oz family is now underway. EY and V Australia will become new long haul players fed by the Virgin Blue network. In effect this creates a third force in the market driven by players who are hungry and willing to do battle.

This could become very interesting and stimulate some real traffic across the domestic market as well as the long haul network.

With its new CEO (ex QF man) John Borghetti’s plans now become clearer - there could be an interesting casualty in all of this. BA and QF's Kangeroo Route dominance.


Photo from Airliner.net: http://cdn-www.airliners.net/aviation-photos/middle/9/2/6/1214629.jpg

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