Virgin Blue’s
(ASX:VBA) new boss, John Borghetti, has moved to take a more hands-on role in attempting to turn around the loss making international carrier, V Australia.
V Australia poses a biggest challenge to Mr Borghetti in his first year as chief executive because of the stiff competition it faces from Qantas and other airlines on the Australia-US route.
As part of a management overhaul, V Australia will be brought back under Virgin’s direct control after operating as a separate company since it began services to the US early last year.
Its cabin and operational crews have been working separately from Virgin's.
But under the management changes, Mr Borghetti will have eight direct reports instead of two.
The restructure is part of strategic plan to boost profits and lift Virgin Blue’s share of business and government markets.
Virgin Blue posted a $160 million loss in the year to June 30 2009.
