Fraser Griggs

1

• Fraser Griggs
• Resource Planning Manager
• AGIFORS
• 27 May 2003

2
The Story So Far.

• Commenced operations in August 2000 on a low cost
  budget model as 4th airline in Australia
  following on from Qantas, Ansett Australia and
  Impulse Airlines
• Maiden profit of AUD 1/2m after first 7 months
  of operation
• This was followed by a profit of AUD 45m for the
  12 months to March 2002 with an Australian market
  share of 5
• In May 2003 we announced a trebling of annual
  profits to AUD 154m and an Australian market
  share of 30

3
Where We Are Today.

• Having started with just 3, we now operate a
  fleet of 32 Boeing 737 NG aircraft flying in
  excess of 1300 sectors per week to 19
  destinations across Australia
• The fleet will be 40 aircraft by the end of 2003
• We are now established as the 2nd largest airline
  in Australia behind Qantas
• We are owned 50 by Sir Richard Bransons Virgin
  Group and 50 by Patrick Corporation of
  Australia.

4
The Secrets of Our Success

• One of the factors that has contributed to our
  success so far has been our policy that
• We price on our costs, not on our competition
• This has resulted in an expansion of the
  Australian aviation market as a whole which has
  enabled us to build market share, rather than
  purely trying to muscle in on what was, the
  existing market

5
The Secrets of Our Success

• Demarcation is a dirty word at Virgin Blue
• We have staff in our Call Centre who also operate
  as Check In staff
• We have Check In staff who also marshal the
  aircraft
• We have Ground Handling staff who are also
  trained as Cabin Crew
• Our Cabin Crew clean the cabin during our 30
  minute aircraft turns
• Etc, etc

6
Crew Management

• We currently have in excess of
• 400 pilots and 800 cabin crew
• With the invaluable help and expertise of Ad Opt
  Technologies and changes to our business process,
  we have moved from the manual production of crew
  pairings to the production of cost effective and
  highly productive crew solutions

7
Crew Management

• With the use of Ad Opts Altitude Pairing crew
  optimization tool many efficiencies have been
  brought to our crew planning area.
• We have moved from an achieved 51 flight hours
  per pilot per month 18 months ago, to an achieved
  63 flight hours per pilot per month
• During the period Nov02 to Apr03 our scheduled
  flying hours increased by 32, yet our required
  crew numbers rose only 18 and our crew overnight
  accommodation needs actually fell by around 4

8
The Future

• Virgin Blue is moving towards a fleet of 50 B737
  NG aircraft by the end of 2005
• Possible international operations by the end of
  2003
• Possible partial float on the Australian Stock
  Exchange by the end of 2003
• Further expansion into the Australian domestic
  market
• Our IT infrastructure now includes
• Ad Opt Technologies
• Sabre Airline Solutions

9
Thank You and Gday !!