Ally

Virgin Blue yesterday unveiled its' latest attempt to woo the corporate and Government traveller with a $2 million-plus upgrade to its lounges. Formerly The Blue Room, we now have "The Lounge"...

The upgrade is the latest of several moves by the low-cost carrier to attract well-heeled customers. Virgin Blue chief executive Brett Godfrey yesterday said more initiatives were on the way.

The upgrade targets the popular Qantas Club and comes after last year's costly introduction of its Velocity frequent flyer program, also aimed at corporates.

It will be accompanied by a strong sales push aimed at convincing government departments and more corporate clients that Virgin is an affordable, high-quality alternative to Qantas.

The all-inclusive facilities – which opened yesterday in Melbourne, Sydney and Brisbane – offer complimentary drinks, food and "enhanced" business facilities including free wireless internet.

Passengers will be able to pay a $349 annual fee, with a $199 joining fee, or buy a single visit pass for $30. The Qantas Club charges AU$685 for a first year member, including joining fee, but features lounges in 18 cities across the country.

Mr Godfrey said the airline was also looking at opening a lounge in Adelaide and "a couple of other ports".

Virgin Blue hoped to break even on the project within three years. "Whether it will take three years, I hope not," he said. "The original lounges were expected to take 2.5 years to break even and they broke even pretty much in the first year.

"We feel this is an appropriate upgrade for the market we're trying to attain.

"It demonstrates further the New World carrier strategy we've put into place, and I think it will be a winner with our corporate guests."


(TravelMole)