As a part of our AUSTRALIAN AIRLINE WARS HOT UP series we have a quick look at where Virgin Blue sits at the moment.

With founder Brett Godfrey departing as CEO and handing over the reins to John Borghetti (from Qantas) there is now a race on to stablise the share price and restructure the business admist very strong domestic competition.

The new CEO has huge industry experience and was an integral and respected part of Qantas for 20 + years. He wants to capture at least 20% of his former airline's Business Travel market by creating new lounges with business work stations and gourmet meals (he's an avid master chef fan) all at better value for money prices. This comes as Qantas recently announced that it's raising it's airfares by 3% on most routes. Richard Branson has accused Qantas chief executive Alan Joyce of “running scared” from the new competitive threat posed by Virgin Blue in the business market.

There is no doubt that the emergance of Tiger has effected the Virgin business.

A very interesting one is a tie up with the newly launched Virgin Money which is set to become Australia's '5th Bank'. Exactly how it works is still sketchy but the concept is to cross promote Velocity club points, with Virgin Money credit cards and airline booking discounts. Will it be on the money? Only time will tell but at this point the Airline is stuck in no mans land behind the premium carrier Qantas and the budget carrier Tiger fighting it out with Jet Star for a smaller maket share. There is some speculation that Richard Branson may be thinking of pulling out of Virgin Blue as well.

Essentially, it's never been a better time to travel by airline in Australia. Choices abound but you can guarantee that this won't last as simple economics suggests that airfares at this price simply can't keeping continuing. Four airlines going head to head is great for the consumer but bad for business. Tiger is backed by Singapore, Jetstar by Qantas, they have the might to battle for a very long time. Virgin? Let's see if Australia's coolest airline can re-invent it'self. There is talk of rolling all the pacific Virgin Airline carriers into one entity simply called V Australia.

There's no doubt that people enjoy the Virgin Blue attitude, the planes are great and seating and food options better than Tiger & Jetstar, so does it simply come down to price?

What's your favourite airline?

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Safe travels.