VIRGIN Blue has launched its trans-Pacific offshoot, V Australia, in direct competition with Qantas and United Airlines, which has dominated the trans-Pacific route for many years.
In tough economic times, businesses are increasingly choosing the "best fare of the day" rather than sticking with one preferred carrier. Corporate travel management company, BCD Travel, says many of its business travel clients are actively trying to cut business travel costs as part of broader cost-cutting measures to stay afloat in the global recession, and cheaper airfares would assist in this endeavour.
Virgin Australia will be competing for passengers with Qantas' new A380 super jumbos on the trans-Pacific route, and Delta Airlines has also entered the market with daily Sydney to Los Angeles services running from July.
BCD Travel is expecting more small businesses, in particular, to introduce "best fare of the day" rules within their corporate travel policies because they do not have enough spending power to attract large corporate travel discounts through individual carriers, and hence, they are diversifying based on price.
