8 Jun 2010

Analyst suggests single brand for Virgin Blue

7:47 am on 8 June 2010

An aviation analyst says Virgin Blue should consider merging its three Australasian and Pacific brands.

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

Forsyth Barr's head of research, Rob Mercer, says it would be less confusing for customers to have a single brand. It's an uphill battle for the carrier to make its multiple airlines profitable, he says.

Meanwhile, trans-Tasman competition is set to further intensify, as the Qantas-owned carrier Jetstar adds another A320 to its fleet.

And Air New Zealand says it will increase its domestic capacity by more than 4% from September, in response to a steady increase in demand on its main trunk routes.