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Following the earlier announcement that Pacific Blue will cease flying New Zealand domestic routes, The Virgin Blue Group announced the second phase of its network review with the introduction of Airbus A330-200 aircraft for its domestic network and an overhaul of its international long haul network.

As part of the review, V Australia will withdraw from its loss making Boeing 777-300 services to South Africa and Phuket.

"As a minor player on the African route the prospects of achieving a return are remote," said John Borghetti, Virgin Blue Group Chief Executive Officer.

Sama Airlines, Saudi Arabian low cost airline, announced yesterday that it would discontinue all flight operations as of Tuesday 24th August 2010.

The airline said: "The decision to stop flying was not taken lightly, but we have spent many months seeking alternatives, and now this is the only option remaining to us."