Virgin flying into Games price war

CANBERRA - Australia's aviation authority has given approval to British entrepreneur Sir Richard Branson's Virgin airline to start domestic flights in Australia in time for next month's Sydney 2000 Olympics.

Virgin Blue will be the second budget airline to enter the domestic market this year, challenging the duopoly of Qantas and Ansett, after regional carrier Impulse Airlines began services on some trunk routes in June.

After receiving final approval from the Civil Aviation Safety Authority late on Friday, Virgin Blue was expected to start flights within the week and immediately entered the domestic airfare price war.

Chief executive Brett Godfrey said Virgin Blue would start flights between Sydney and Brisbane on Thursday, offering a special $A48 ($64) fare until September 30, which will cover the September 15-October 1 Olympics period.

"Virgin Blue wants to make a genuine low-fare launch offer that is available to everyone, not just the fortunate internet-savvy few and not just a few seats at an inconvenient time," said Mr Godfrey.

Civil Aviation gave Virgin Blue the final go-ahead after the airline successfully completed a final proving flight.

This was the last hurdle in its bid for an air operator's certificate and, although the certificate will not be presented for several days, the airline has already been given approval to sell seats.

Virgin Blue's distinctive red Boeing 737-400 conducted two return flights between Brisbane and Sydney on Friday after its planes and facilities passed inspections earlier in the week.

Virgin Blue's planned August 3 takeoff in Australia was delayed last month when aviation officials told the airline to rewrite parts of its operating manuals.

- REUTERS

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