5 Jun 2010

Profitability of Virgin Blue decisions questioned

10:26 am on 5 June 2010

An aviation analyst says Virgin Blue should take a serious look at the profitability of some of its routes, including its New Zealand domestic flights.

The airline is carrying out a major review of its operations, which also include the New Zealand domestic service Pacific Blue and Polynesia Blue.

Forsyth Barr's head of research, Rob Mercer, says two of its recent decisions on routes don't make economic sense.

Mr Mercer says while he loves the fact Virgin Blue has launched on the New Zealand domestic market, he struggles to see how it will make a profit here.

He says the other is the decision to develop Virgin's long-haul routes out of Australia, in what is quite a competitive market.