Virgin Blue will remove two 737s from its domestic network by October, reducing capacity by an additional 3%, introduce new baggage fees and adjust certain fares in an effort to combat rising fuel costs. There will be no layoffs associated with the new initiatives. The airline unveiled a A$50 million ($48.8 million) cost-savings package in June that included a 6% capacity cut (ATWOnline, June 16). Last week's second round of initiatives also includes "significant" fare reductions on ...

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