By Martin Kelly,

NEWS that Virgin Blue is seriously considering launching a new Low Cost Carrier to combat the arrival in Australia of Tiger Airways etc presents an intriguing marketing challenge. After all Virgin unequivocally entered the Australian market as an LCC and it’s won plenty of regional aviation awards in this category over the past few years.

But if the company goes ahead with a new LCC launch, where does this leave the positioning of “ex-LCC” Virgin Blue? Between a rock and a hard place, some would suggest. Statements in the past by CEO Brett Godfrey indicate Virgin is gently repositioning itself as a “New World Carrier”, combining the best of the old and new, while the website says it is a “low fare airline that is big on service and low on price.”  Stand by for some more spin in the weeks ahead.
June 22, 2007

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