Coming to America: Virgin Atlantic links
HEATHROW: New York (JFK and Newark), Boston, Washington, Atlanta, Miami, Orlando, Las Vegas, Seattle, Los Angeles, San Francisco
GATWICK: Orlando, Las Vegas
MANCHESTER: New York, Orlando, San Francisco, Boston GLASGOW: Orlando (seasonal) BELFAST: Orlando (seasonal)
DELTA AIR LINES: Ex-Heathrow: Atlanta, Boston, Detroit, New York JFK, Minneapolis-St Paul, Portland, Salt Lake City
‘We have no plan for trade GDS fee’
The travel trade remains key to Virgin Atlantic’s sales, according to Emma Jones. She said: “Trade bookings
are a huge element of our business. Agents are an extension of our internal sales team so we work closely with the trade and focus on educational opportunities. Fam trips are very important.” Jones’s previous job was
as a corporate travel buyer – she joined Virgin two years ago – so she is aware of the challenges agents and travel management companies face now that British Airways, Iberia, Lufthansa and Air France-KLM levy fees on GDS bookings and seek to drive sales via alternative NDC-enabled channels. She said: “We’re watching the market, [but] we have no plan to charge a GDS fee. We want our fares in all channels.” Virgin is working on a
New Distribution Capability, but predominately in the business-to-consumer space.
Carrier’s strategy mitigates a ‘tough operating period’
The aviation market to the US is among the world’s most competitive and has been made more so by low-cost flights by Norwegian Air from Gatwick, even as airlines’ costs are rising.
Virgin Atlantic vice-president of sales Emma Jones said: “It has been a tough operating period. The fall in the pound [from June 2016] increased our operating costs, the cost of aircraft leasing and of fuel, and had an impact on the number of UK customers taking flights across the Atlantic.” Jet fuel and aircraft leases are
priced in dollars, which led Virgin Atlantic to report a £14 million loss for 2017. The recent rise in the dollar-price of oil – which hit $80 a barrel at one point last month – has put further pressure on margins. Jones said: “Fuel is a large percentage of our costs. We buy fuel more than a year in advance, but we continue to monitor the impact and keep fares under review.” Switching to new, more fuel-
“Fuel is a large part of our costs. We continue to monitor the impact and review fares”
efficient aircraft is vital. Virgin will take delivery of the first of 12 new Airbus A350-1000s next year. The carrier has yet to reveal the new cabins it will install on the aircraft, but Jones promised: “The A350 will be unrivalled in terms of comfort and reliability.” Virgin already operates a fleet of Boeing 787 Dreamliners but, in Jones’s words, has “had challenges with the Rolls-Royce Trent engines” on these. The problem is industry-wide. It has led to a proportion of the 787 fleet being grounded for lengthy periods and meant Virgin has had to improvise to maintain its flying schedule. The carrier acquired four former Airbus A330-200s from Air Berlin in March, which
it has revamped and put into service from Manchester and Gatwick. These will have Premium and new Upper Class cabins installed by the end of the year. At the same time, Jones believes
innovations in Virgin Atlantic’s product and service will maintain the carrier’s status. She said: “We recently launched our new economy brands – Economy Delight, Economy Classic and Economy Light – which allow customers to choose the product that suits their budget.” The fare options are part of a £300 million investment to deliver improvements. Jones said: “We’ve introduced a signature scent called AIR to invoke wellbeing at check-in, in Clubhouses, at airport gates and when boarding. We’ve introduced afternoon tea in the Clubhouse in partnership with a celebrity patisserie chef.” She added: “We have Clubhouses
in all our hub markets, which is a differentiator for us.”
5 July 2018
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