Virgin Blue announces A$50 million cost-savings initiative, service cuts

Australia's Virgin Blue announced Friday a range of capacity reductions and a A$50 million ($46.9 million) cost-savings package in response to continuing record fuel prices. The initiatives are the first resulting from its wide-ranging look into how to handle fuel prices that now account for 35% of its cost base (ATWOnline, June 6). Blue's view is that high fuel prices are here to stay. "It's not a case of planning interim measures to offset a spike in the cost of fuel. All airlines must ...