Virgin Blue Reviews

Pros

The "Virgin" brand is key to the US market place. It goes without saying the appeal of Sir Richard Branson and the effect he has on the consumer. He captures the imagination of the public and is able to provide a customer experience that truly separates the "Virgin" family from their competitors'.

Cons

The US management team lacks the tools and vision to compete against the large legacy carriers. Their on-board product is at best average when compared to Qantas and even United. In today's business environment, mileage programs compel consumers to choose a brand regardless of service issues or reputation. Vaustralia has not deviated from their US business plan in 17 months of operation. They have limited resources across the board and and is reported to have a loss of 40M for their first fiscal year.

Advice to Senior Management

The US management team needs a new infusion of leadership to steer through the competitive US market place. The identity of Vaustralia is lost among the "Virgin" entities, a strength that could prove to be the difference between success and failure. They must commit to a corporate strategy by developing the "soft" dollar tools and they must continue to develop an alliance strategy that compensates for the lack of network connectivity, lounges, mileage programs and a host of corporate driven tools.