The dynamics of the airline industry are becoming increasingly pronounced as deregulation and competition increase. Technology or government involvement are no longer guarantees of success. However, the business model is becoming the leading factor of survival in this industry. This blog comments on the development of airline business models throughout the world, and will hopefully give some insight into airline operations, the industry, and business models in general
Wednesday, March 21, 2007
777s for Virgin Blue
Boeing has just scored the sale of six 777s for Virgin Blue's foray into the long-haul market. This contract is worth more than US$ 2 billion for Boeing and may just usher in the long-haul LCC business model...sort of. I have not seen any news on the configuration plans for the airline. Currently Virgin Blue is shopping for US routes and prefers to bypass the Hawaiian islands and head straight for the mainland. It will be interesting to watch this development, along with Virgin America's conditional go-ahead from the US DOT.
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