Virgin Australia Steps In to Support Tourism Australia

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Virgin Australia CEO John Borghetti has been transforming Virgin Australia and says he has a complete strategy that works over the long term.  Borghetti won a bet with Sir Richard Branson that he could radically transformation the low-cost carrier Virgin Blue to the competitive Virgin Australia. Australia’s Virgin Australia has now stepped in to take over from rival Qantas who cut its financial ties with Tourism Australia (TA).  Qantas had been the largest private contributor to Tourism Australia and provided about A$44 million in funding over three years for promotional campaigns.

The Virgin CEO John Borghetti said the airline had been in talks with Tourism Australia about doubling its funding to A$12 million over three years and that Virgin would be prepared to fund one of Tourism Australia’s largest campaigns, ‘G’day LA’, if Qantas did not renew a funding agreement when it expired next April.

As part of Virgin Australia’s expansion, Singapore Airlines announced that it would extend its code sharing arrangements with Virgin Australia to flights it operates to UK and continental cities via its Singapore hub from Sydney and Melbourne.

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