Profitable Virgin to fly SYD-MEL

Virgin Blue has struck a double blow for airfare competition announcing its much-awaited decision to begin flying between Sydney and Melbourne, and that its about to declare its first profit.

From July 15, five SYD-MEL flights a day in each direction will offer one-way fares as low as $66 booked over the Net or $71 over the phone. The full economy fare is $189. Bookings can be made immediately.

Virgin says it is now trading at a profit and that this has enabled it to bring forward the launch of its service on Australia's busiest route.

This news is a great positive sign for the ongoing viability of true domestic airfare competition within Australia which has delivered air travellers dramatically lower fares over the last year.

It shows the demise of Impulse may not be the beginning of the end of competition that many have predicted.

While plenty of question marks remain, if Virgin can continue to build its profitability on an expanded set of routes including the all-important SYD-MEL, lower airfares will be here to stay.

Book online now with Virgin or check out what Qantas and Ansett are offering.