Virgin Blue could terminate services to Fiji

Less than a year since starting services to Fiji, Virgin Blue could soon terminate its services to Fiji.

The Sydney Morning Herald reports that new Virgin Blue chief executive John Borghetti is to overhaul the airline's operations, which may mean several international and domestic routes are axed and the number of brands it flies under is cut from three to one.

It said barely a month since taking the helm, Borghetti has signaled to investors that the airline no longer wants to slug it out with Qantas owned Jetstar and Singapore Airlines-backed Tiger at the bottom end of the market.

Borghetti has also targeted the airline's loss making V Australia network, cutting the Fiji and Phuket routes in favor of boosting US services through its proposed tie up with Delta Airlines and the recently launched South African operation.

The route review is expected to be completed by the end of this month, which will allow Virgin to cut capacity and services between July and December before the busy domestic summer holiday season begins.

The airline is prevented by the long standing agreement between Sir Richard Branson's Virgin Atlantic Airways and 49 per cent shareholder Singapore Airlines from using the Virgin name for international flights.

That has resulted in it flying under the Virgin Blue brand within Australia, Pacific Blue in New Zealand, across the Tasman and out to Fiji, Tonga and Vanuatu, and V Australia.