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Virgin Blue To Move Into Sydney T2

06/11/2002

Low Fare Airline Settles On Terms Comparable To April Agreement
Airline Announces Tender For International Services

Virgin Blue announced today it will move into the T2 Sydney Airport Terminal on terms which will allow the airline to keep delivering the lowest airfares possible to the Australian public.


After extensive talks over recent weeks, a binding agreement was signed today that produces an outcome for the low fare carrier comparable to that which it hoped to confirm through legal action.


Key terms include:


A 17 year Anchor tenancy agreement to allow Virgin Blue to remain in a firm competitive position vs. Qantas

Annual charges comparable to those negotiated in April by Virgin Blue, allowing the airline to maintain its commitment to affordable travel for all Australians.

The low fare airline being allowed to use its own IT systems that is now the standard of the world’s leading low fare carriers.

Virgin Blue will also continue using its own baggage systems that help to avoid the risk that bags might get lost in the global airline network.

Virgin Blue has priority over the first 6 gates in Pier A and access to an additional 6 gates to facilitate the airline’s growth.

Branding consistent to what has been negotiated at other major airports.

No need for Virgin Blue Guests to board a bus to get to their aircraft

Virgin Group Chairman, Richard Branson said, “I am truly glad this contentious issue is now put aside as it will allow us to focus 100% on what we do best, looking after our Guests with the most modern aircraft, the best on time performance, superlative crew and now finally, fantastic facilities at every airport.”


He continued, “Our team at Sydney Airport has worked tirelessly over recent months to ensure that Guests were looked after as best they could be under very difficult circumstances. We are hugely thankful for the patience and understanding of our staff and the many tens of thousands of Guests who have stood firm in their support of Virgin Blue.”


Virgin Blue CEO Brett Godfrey added “This is a victory for the Australian travelling public as it means vastly improved facilities out of Sydney Airport without any fare increase. It will allow Virgin Blue to fast track its fleet expansion plans and concentrate on exciting future opportunities including being able to offer many more low fares.


The move to the T2 will mean more flights, more jobs and a more convenient travelling experience to and from Sydney Airport. Furthermore it will underpin and facilitate Virgin Blue’s continued growth plans in the coming years.”


The airline plans to move into the facility by mid December or as soon as it can be wired with the state of the art Open Skies check-in, departure control and baggage systems that Virgin Blue operates throughout the country.


With access now favourably resolved at Sydney Airport, Virgin Blue can channel its resources into the international arena. Today Richard Branson launches a tender document to solicit interest to help select the carrier’s first regional Pacific destinations.