Branson's gamble is that his flashy, low-fare airline will kick off a surge in Australian air travel, which will eventually deliver profits. But that didn't prevent Compass I from failing shortly afterwards. Ten more Boeing 737s will arrive in the next two years. The Branson marketing blitz will be relentless. But Virgin Blue must still expect turbulence.
Impulse is just one of a handful of new carriers moving into Australian skies.
Even Godfrey admits that two low-fare carriers don't typically attack the same route and prosper. Branson definitely has the dash. What he needs now is the grit to hang on. The McGraw-Hill Companies Inc. All rights reserved.