Branson said corporate clients already were moving to Virgin Blue ahead of changes that include a business class product.

The airline plans to unveil a blueprint aimed at gaining a bigger share of the corporate market early next year.

''We plan to come trundling down the middle of the road with all force and I can understand why Alan Joyce is beginning to run scared,'' Branson said.

Earlier, Joyce had said an airline with a ''middle of the road strategy'' was destined for failure.