Corporate, a Game Changer for Virgin

Virgin Australia’s Game Change Program has helped reposition the airline as a “genuine competitor” in a challenging environment, according to the carrier’s head, after reporting a $90.6 million jump in statutory profit after tax for the financial year 2011/12 compared to the same period last year.

In a preliminary financial report, the Australian carrier announced its net profit had move back into the black to $22.8 million compared to the $67.8 million decline last year.

The carrier’s profit before related income tax expense and net finance costs also increased from $46.6 million decline last year to $66.9 million surplus in 2011/12.

Virgin Australia chief executive John Borghetti said the company’s return to profits was an indication that the Game Change Program announced last year, is “delivering positive results” despite external challenges.

“Over a short period we have repositioned Virgin Australia as a genuine competitor on all key customer measures, including product, network and loyalty programs, while maintaining our service and cost advantages,” the chief explained.

“This has enabled us to turn around the financial performance of the airline in a difficult and highly competitive environment.”

As well as pulling the carrier out of the red, Mr Borghetti said the Game Change Program had also boosted the carrier’s corporate appeal after achieving its set 20 percent business traveller target.

“This segment [corporate] now makes up 20 percent of our domestic revenue and encouragingly over the last three months we have averaged above this level,” he explained.

Looking ahead, Mr Borghetti said the airline is “unable to provide a clear” guidance but did stress that the carrier would focus on updating its fleet with a mix of narrow-body and wide-body aircraft as well as move into the next phase of its Game Change Program.

Sourced: etravelblackboardasia