Company background Virgin Blue, one of the airline companies in Australia, which provides lost cost, low fare domestic airline, offering frequent passenger services on routes between all of the Australia's major cities, is one of the subsidiaries of the Virgin Group that established on 3 August 2000 with two aircraft initially offering seven return flights a day between Brisbane and Sydney. And this has been expanded to cover the major cities in Australia. By now, Virgin Group's …
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…shown in figure 1, it can be seen that the low cost airline company has obviously got a higher compound annual growth rate than the opposite. For example, Ryanair has a 25 percent increase between the period of 1996 and 2001, where the traditional carries such as British Airways only got around 3 percent growth rates. Therefore, it can be seen that the aviation market in Australia trend to be continue a strong growth with a low cost airline services.