Today, Richard Branson visited the Prime Minister of Australia and premier of Victoria Steve Bracks to talk about the new 'no-frills' Virgin airline in Australia. Branson is now convincing Steve Bracks to use Melbourne as a homebase for Australia.
Proposed fares are:
Melbourne-Sydney -only $200 bucks!
compared with ANTAS and Ansett, $250 for the same trip!
Richard Branson also annoucned that he might order five Boeing 737NGs for services starting next July! (after when the GST comes intoplay).
QANTAS's shares today dropped 75cents AUS$ and lost $1 billion bucks!
I reckon QANTAS and Ansett will fight back by droppping fares too-but will they beat Virgn, only time will tell...