Virgin Australia Ltd. (VBA.AU) said Wednesday it would add extra flying capacity over the coming months as it snaps up disgruntled passengers affected by strike action against rival Qantas Airways Ltd. (QAN.AU).

Australia's second biggest carrier, which is having no problems with trade unions, said that over the past three months it has added over 31,000 seats each week in Australia's domestic flights market.

"In addition to this, we have already put plans in place to add extra capacity over the next few weeks," Chief Executive John Borghetti said in a statement. These include adding 3,000 seats each week up to Oct. 30 and the addition of a fifth daily return service from Melbourne to Perth from Dec. 20.

"We are also closely monitoring the Queensland market to ensure we can meet any additional capacity needs as this important tourism market rebuilds after the devastating floods and cyclones," Borghetti said.

Virgin Australia's moves are in stark contrast to those by Qantas, which in recent days has grounded seven aircraft due to overtime bans by engineers.

Borghetti confirmed last week that Virgin Australia was flying extra hours to accommodate travelers affected by the strikes and would bring into service a new 737 aircraft three weeks ahead of schedule.

His rival's woes couldn't have come at a better time. The former senior Qantas executive is overhauling Virgin's Australia's offering to better tap Australia's lucrative business class market. He's just started putting business class seats on the company's jets for the first time. He's also forged international alliances with the likes of Singapore Airlines, Delta Air Lines, Etihad and Air New Zealand.

"We are well advanced in discussions with alliance partners Etihad Airways and Air New Zealand on providing extra capacity from November, leading into the busy December and January holiday period," Borghetti said.

At 0405 GMT, Virgin Australia shares were up 2.9% at 35.5 cents, continuing their outperformance since the strikes against Qantas began in August.

-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692; Ross.Kelly@dowjones.com

Virgin Blue Holdings (ASX:VBA)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more Virgin Blue Holdings Charts.
Virgin Blue Holdings (ASX:VBA)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more Virgin Blue Holdings Charts.