SYDNEY: Newly installed Virgin Blue chief executive John Borghetti is to take charge of loss-making international carrier V Australia in a move that could see a name change designed to reduce Virgin Blue's number of brands from four to one.
V Australia will be brought back under its parent company's direct control after functioning as a separate company since it began flying to the US early last year. The airline has suffered from stiff competition on its US routes from Qantas, United and Delta Air Lines.
At present, the airline is restricted from using the "Virgin" name outside of Australia because of an agreement between part owner Virgin Group and Singapore Airlines. V Australia has four aircraft in operation and an option over another two.
A Virgin spokesman said plans to reduce the number of brands is "pure speculation" at this stage. Sources have informed AdNews in recent weeks that the airline is planning to make changes.
The move comes hot on the heels of Virgin Blue confirming to AdNews it is to review its $50 million creative account.
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