Reports suggest that the newly appointed CEO, John Borghetti has made the announcement that the airline may reduce its three brands, namely Virgin Blue, Pacific Blue and V Australia and consolidate the same into a single brand name called the Virgin Australia Airlines.

The move is anticipated in the wake of the massive downturn in profit forecasts.

Further, the new CEO has also announced that Virgin Blue Holdings Ltd. would also reduce or cut services to Fiji and Phuket.

Reports claim that the Group’s long-haul V Australia is also exploring closer networking opportunities with Delta.

After taking charge, Borghetti has also identified improvements to its premium products, like refurbishment of lounges and an upgrading of its loyalty program. The moves are aimed at switching the emphasis from leisure to business travel.

As told to the analysts from Macquarie Equities Research, Mr. Borghetti said that he wanted to enhance Virgin's share of the domestic corporate market from about 10% to a minimum of 15%, over the next 12 to 24 months.

The analysts claim that it would take at least six months to assess Mr. Borghetti's ‘clear strategy of restructuring and repositioning’.

They further added that, "Given his in-depth knowledge of Qantas from his previous role, Borghetti is ideally suited to lead VBA's strategy of attacking QAN's lucrative domestic business market and reducing exposure to the leisure market".