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The Tourism industry has faced challenging times. The global financial crisis, weather-related travel disruptions, heavy discounting and fewer Australians choosing to holiday domestically have muddied the waters of one the country’s largest and most lucrative industries. The high Australian dollar over much of the past five years has put further pressure on domestic operators (Australian Government, 2014). This has been partly offset by the rising affluence of the South Asian markets, which caused dramatic growth from India and China.
Virgin Australia Holdings Limited is the holding company that operates Virgin Australia, formerly Virgin Blue Airlines. Virgin started operations in Australia in 2000 by offering cheap air travel between capital cities around the country. It now operates close to 3,000 flights per week to 28 Australian cities. The company has had support from federal, state and local governments, which provided incentives for it to service routes that would otherwise be subject to high-price monopoly. The biggest and latest company development has been the introduction of Virgin Australia, an international airline with direct services from Australia to Los Angeles. Virgin Australia launched direct services between Sydney and Los Angeles in February 2009, with the number of flights from Australia to the United States growing since then.
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