Virgin Blue chasing civil servant market

Virgin Blue is targeting Australia's business and Government passengers by undercutting bigger rival Qantas to help stem its declining earnings.

"We've got 30 per cent of the overall market. We should be able to get something like 30 per cent of the business and Government market," said Chris Corrigan, chief executive of Patrick Corp, which took control of the carrier in March.

Virgin Blue had a 20 per cent drop in half-year profits as fuel costs rose and competition jumped.