Australia's Virgin Blue to loose "Blue"

Virgin Blue will drop the “Blue” from its brand name, opting instead for a streamlined brand more in line with its push to lure business customers. But the airline's boss, former Qantas Executive GM John Borghetti, has stopped short of dumping the Virgin brand completely as the airline tries to redefine its place in the local market.

The airline’s brand consultant, Hans Hulsbosch, told The Australian that while the Virgin brand would continue to anchor the airline, Blue would no longer be part of it. The rebranding strategy is also expected to bring to an end several Virgin brand extensions in the region, including Pacific Blue, Polynesian Blue and V Australia.

Research has found that as Virgin moved to capture the business-class market dominated by Qantas, its brand was being held back by perceptions among business travelers that it was purely a budget airline.

The fragmentation of the brand is due to a 2000 agreement between Virgin Atlantic and Singapore Airlines, which prevents the Virgin brand being used outside Australia by Virgin Blue. However, the new branding may get around this issue.

(Geoffrey Thomas - ATWOnline News)