Report: Virgin Blue's Upmarket Move Impacts Low-Cost Carriers

The Australian is reporting that the decision by Virgin Blue to move upmarket has slashed the market share of low-cost carriers to 12.9 percent in January, down from 19.4 percent a year ago.

Bureau of Infrastructure, Transport and Regional Economics figures to be released today show the number of international passengers traveling to and from Australia in January was 3.1 percent higher than the previous year. Qantas remained market leader with a 17.7 percent share, followed by Singapore Airlines with 8.9 percent, Emirates with 8.3 percent, Jetstar with 8.1 percent and Virgin Australia with 8.1 percent. Australian airlines accounted for 32.5 percent of the market, compared with 32 percent a year ago.

Virgin Australia is rolling out its codeshare with Singapore Airlines on routes to Singapore, China and South Africa. Virgin is also launching direct flights to Darwin from Monday.