Virgin sets a new course

Etihad Airways has launched a fare sale from Australia and New Zealand to mark its new partnership with the Virgin Blue Group.

Etihad is also launching the Australia Skypass, a new fare product that allows inbound tourists to fly up to six domestic/Tasman sectors from USD$55 per sector.

Etihad Airways' chief commercial officer Peter Baumgartner said, "We believe the Australia Skypass will be a boon for domestic tourism in Australia, giving untapped European tourists access to secondary ports as well as connectivity between the major capital cities."

Virgin Blue is dumping its loss-making long-haul V Australia services to South Africa and Thailand.

"As a minor player on the African route the prospects of achieving a return are remote," Virgin Blue's chief executive John Borghetti said.

Virgin will instead redeploy four B777s to the Australia-Los Angeles and Abu Dhabi routes from February.

Virgin has also announced a codeshare agreement with Eithad and its Abu Dhabi hub from October.

Virgin Blue reported an after-tax net profit for the year to June 30 of $21.3 million, up from a loss of $160 million a year earlier.