Virgin may target fly-in/fly-out sector

Virgin Blue has opened up a range of fascinating possibilities for intra-state air services in Western Australia with its order for 20 Embraer 170 and 190 jets placed late last month.

The 70- and 90-seat twin-jets are state-of-the-art and would enable the airline to launch into the fly-in/fly-out market.

In one move, Virgin Blue has covered a series of marketing options with its order, ranging from a Canberra-Sydney shuttle service to intra New South Wales operations and the booming market in WA. The order was for 11 of the larger EMB 190s and three EMB 170s, with options for six more.

The Embraer EMB190 will have wide appeal with its two-two seating and will be nothing like the debacle that Ansett/Kendall experienced with the CRJ700.

But at the same time, the move breaks rule number one of the low cost carrier philosophy – one aircraft type. Despite this, Virgin Blue has done very well in morphing to meet market needs and has success on its side.

The airline’s CEO, Brett Godfrey, explains that the order is a “key step-change for Virgin Blue under our New World Carrier strategy announced last year”. That strategy has manifested itself in a push into Qantas’s domain – the business market.

“This new jet will enhance our ability to serve the corporate market by more accurately matching seat capacity and frequency to passenger demand," Mr Godfrey said. “Virgin Blue will have the ability to complement and right-size operations and is considering a range of operating possibilities, yet to be confirmed.”

Translated, the EMB 190 gives Virgin Blue an innovative and flexible piece of kit in its guerrilla warfare with Qantas and its regional subsidiaries.