Virgin Blue to expand into Asia

Virgin boss Richard Branson said today that he would expand his cut price-Australian domestic airline into Asia.

He said he may also list Virgin Blue on the Australian Stock Exchange within two years.

Branson said Virgin Blue would be operating flights out of Australia within 12 months, with Hong Kong, Shanghai, Tokyo, Bali in Indonesia and New Zealand likely destinations.

The move would put the carrier in competition with Australian flag carrier Qantas Airways’ new no-frills international carrier, Australian Airlines, which begins flying in October between Cairns and six Asian cities.

Branson said he was happy to compete head on with Qantas.

‘‘There is certainly room for two really good airlines in Australia. We feel confident that we can survive and thrive,’’ he said.

He added that Virgin Blue is hoping to grab up to half of Australia’s domestic aviation market following the collapse of Ansett, the country’s second largest carrier.

Plagued with debts, Ansett was put into voluntary administration in mid-September and later grounded, leaving Qantas the dominant domestic airline carrying about 85% of passengers.

‘‘Eighteen months ago Virgin Blue did not exist; now we have 1,500 people working for us and we have 15% of the market and it is growing extremely rapidly,’’ Sir Richard said.

Last month, Australian freight and transportation company Patrick Corp. bought a 50% stake in Virgin Blue for almost £100m (€163m).

Branson said the cash injection would help fund the airline’s public floatation. He will be in Sydney later this week to formally sign a deal with Patrick Corp.