Game Changer?

Instead, the airline is being pitched on an altogether new level, if language to describe the A330s is any guide – “two new luxury Airbus 330 aircraft” according to the press release announcing details of their interiors. Continues that press release, “Virgin Blue’s creative director Hans Hulsbosch said the inspiration for the ultramodern aircraft was to provide guests with a luxury experience of relaxation, comfort and excellence in service. ” According to Hulsbosch, “The aircraft is stunning in its visual appeal, with a very modern simplistic look that creates more space in the aircraft. ” Certainly hyperbole and press releases are no strangers, and no doubt Virgin Blue was seeking some ‘cut through’ after Qantas’s pre-emptive strike in announcing plans to deploy internationally configured, Skybed equipped 747s and A330s on transcontinental routes. And if the standard of product on V Australia, plus VB’s Virgin Atlantic sister airline are any guide, it may well be that the A330’s interiors will be to a very high standard.

But the language that seems to be aimed at lifting VB’s marketing position is not just limited to A330 interiors – with “The new retail menu [to] offer guests a superior quality product, with delicious fresh meals and a totally reinvigorated snack and beverage menu focused on Australian-owned and made produce. ” And then there are the new uniforms, launched in a “stylish runway show” by supermodel and fashion entrepreneur Elle Macpherson. Said the uniforms’ designer, Juli Grbac, “I took inspiration from the glamour of flying in the 1960s and gave it a contemporary edge to fit Virgin Blue’s new brand positioning. I worked closely with Virgin Blue to create the ultimate design that would not only look sophisticated and have that wow factor, but be comfortable and of superior quality. ” This is a long way from the David v Goliath Virgin Blue launched over a decade ago, with a one class, all-economy cabin, a handful of second hand 737-400s, and a business plan drawn up on a beer coaster! Of course, even before Borghetti’s appointment, transformation was well underway – from V Australia to airport lounges to premium economy, Virgin Blue had long left behind the pure low cost carrier model. But that transformation is now being taken to a new, higher level. And after 10 years it probably was the right time to review image and branding – arguably the tan crew uniforms and the red livery were starting to date.

It will be fascinating to see how the travelling public reacts to the changes, especially the value conscious leisure travellers upon whom the success of VB has been built. Few analysts question Borghetti’s strategy of broadening the revenue base in going after higher yielding business travellers, and Borghetti has said the Game Change Program “aims to position Virgin Blue as the airline of choice for both the corporate and the leisure markets”, so he full well appreciates the importance of leisure travellers to his airline. But how VB manages the expectations of both cost conscious leisure passengers and time conscious business travellers will be fascinating to watch.

One reader recently posted on the australianaviation. com. au website: “It just seems as if Virgin is trying to become Qantas Lite – the point of difference for the past decade was Virgin’s struggle to beat the ‘big guy’ – but now that ‘big guy’ is heading up Virgin and trying to recreate his former Qantas glory?” Managing those perceptions will be a key challenge.

Time, of course, will tell.

Soon the key, and exciting, strategy changes will have been put in place and bedded down, and the focus for Borghetti and his management team will be execution and day-to-day management.

It is that execution which will demonstrate just how well Virgin Blue and Borghetti have changed the game.