Virgin Blue Case


Virgin Blue started operating its business in 2000 to serve the leisure travellers across Australia. They had good business until the economic crisis emerged and their target market started to decline. So they focused on corporate flyers and planned further activity accordingly. Now for the brand name and more advanced development, Virgin Blue is going to be Virgin Australia and expand their business in Asian economy within this year.

Dropping “Blue” from Virgin Blue Airlines

There was a time when people tend to view change in an organization as something unwanted, something that put things out of comfort zone or something simply problematic. But now as the time passed more, the point of view on change modified and surely it became a way to develop and improve performance of an organization to compete in the advanced competitive global market. That is why Virgin Blue airlines needed to change; their target market and operation as well as their new name- Virgin Australia.
Pressure for the change

There are several reasons why Virgin Blue airlines had to change. First of all, the focus of Virgin Blue was on leisure travellers on domestic flight. But the emergence of economic crisis with consequential job losses and slow growth of market made it hard to compete. For the first time Virgin Blue's domestic operations faced losses since the airline was listed in 2002 and fuel prize was increasing. Their target market; domestic leisure travel sector were competitive with Jetstar and Tiger Airways. People were tending to cut off their extra travel cost in order to manage finance in this economical crisis. Virgin Blue could not increase market anymore based on only leisure travellers.
Second, Virgin Blue lost several partnership agreements with different companies. Its V Australia partnership agreement with Delta on Pacific and US routes was rejected by US Department of Transportation (DoT); and a proposed code share and mini-partnership with Air...