Virgin Blue in credit card row

SIR Richard Branson's Aussie discount airline Virgin Blue has been accused of profiteering and misleading customers over a plan to impose a credit card fee on tickets.

The airline will charge $2 (76p) on all such purchases from midnight tonight. Last year, it hit out at a similar move by rival Qantas to impose a 1% surcharge on transactions, saying it would not follow.

Virgin Blue said it could not continue to be disadvantaged against competitors and added that its own market research had shown passengers had no concerns about the charge.

The Australian Consumers' Association accused the airline of 'double dipping', with credit charges already built into the price of its tickets.

'Virgin Blue had billboards in capital cities criticising [Qantas's charge] and it hasn't taken them long to whack a surcharge on,' the association's finance policy officer, Catherine Wolthuizen, told the Sydney Morning Herald.

Virgin Blue holds 33% market share after just four years of operation. Its 44 aircraft now fly 43 routes to 21 destinations.