Virgin Australia shakes up rivals
money-glitz | Janice Huang 17 Jul 2017Virgin Australia's first direct flight between Melbourne and Hong Kong landed in the city recently.
This was made possible by the codeshare partnership with Hong Kong Airlines to expand its network of destinations across Hong Kong, mainland China, and Australia.
Under the codeshare agreement, the two airlines operate five flights a week between Hong Kong and the Gold Coast as well as Cairns.
Meanwhile, Virgin Australia passengers will also be able to book onward travel to mainland China through Hong Kong Airlines.
John Borghetti, chief executive of Virgin Australia Group says the maiden flight was 80 percent full. The carrier will focus on the international market, especially Hong Kong and Greater China.
Over the long-term, he aims to start daily flights between Hong Kong and Melbourne.
After Virgin Australia launched the new flight, rivals Qantas Airways and Cathay Pacific Airways (0293) have cut prices by 30 percent, he says, adding he welcomes the competition. Price is not the only factor to attract customers. Service matters, too, he says.
There are plans to begin flights between Hong Kong and other cities such as Sydney and Brisbane.
Also, as a part of expansion in Greater China, Virgin Australia announced cooperation between its award-winning loyalty program Velocity Frequent Flyer and Fortune Wings Club of Hainan Airlines.
Velocity members will be able to earn and redeem points on selected services operated by four Fortune Wings Club participating airlines - Hong Kong Airlines, Hainan Airlines, Capital Airlines and Tianjin Airlines.
In the coming weeks, members from Velocity will be able to enjoy lounge access, priority check in and boarding as well as additional baggage allowance through these airline partners.
Virgin Australia's partner, Hong Kong Airlines also plans to expand its network. It has been planning to launch flights to North America.
After launching flights between Hong Kong and Vancouver, the company will open a new route between Hong Kong and Los Angeles by the end of the year, says vice chairman Tang King-shing. He adds that the carrier intends to hire 1,100 staff this year.
He says the airline aims to expand its network in North America and Europe in the future.
