Virgin eyes more slots when third runway opens
Ian Taylor
ian.taylor@travelweekly.co.uk
Virgin Atlantic plans “dramatic expansion” at Heathrow and intends to take on British Airways as “a second UK flag carrier” when a third runway opens.
Shai Weiss, Virgin Atlantic chief
executive, believes the airline’s joint acquisition of Flybe in February will radically strengthen his argument to obtain more slots at Heathrow. Weiss told Travel Weekly: “You
have to see the acquisition of Flybe in the context of the third runway.” Flybe was “minutes away from liquidation” in January when Virgin Atlantic stepped in with US private equity partner Cyrus Capital and Southend Airport owner Stobart Group to buy the regional carrier. The deal was completed when the consortium, christened Connect Airways, bought out Flybe group shareholders in March. The takeover is awaiting regulatory clearance.
“Britain needs a second flag carrier [and for that] we need significant slots at Heathrow”
Weiss said: “We saved more than 2,000 jobs and 1,400 pensions at Flybe. It’s a great opportunity to feed passengers into Manchester and Heathrow.” Flybe operates with 12 take-off and landing slots at Heathrow and 340 at Manchester. However, Weiss said: “Our
aim is to expand dramatically at Heathrow once a third runway is in place. To do that, we need to change the way slots are allocated.” He argued: “British Airways continues to have a dominant position [at Heathrow]. Politicians understand the need for more competition. Britain needs a second flag carrier and for that we need significant slots at Heathrow.” BA and other airlines owned by parent company IAG currently hold
WEISS: ‘Our aim is to dramatically expand at Heathrow’
about 55% of slots at the airport. Weiss said: “We need to change the slot regime. I’m sure it will change [and] we are the only credible carrier [to take advantage]. The decision [on a third runway] will be taken in the next 12-24 months. We bought Flybe to demonstrate we are serious about feeder traffic. This is a step towards a third runway at Heathrow.” He dismissed the disruption
Flybe suffered at the start of April and said: “Flybe is a great addition to our group. It’s a necessary step to create a more complete airline. It was a beautiful acquisition price and the [Flybe] debt is backed by the aircraft. “Flybe will be transformed.
It will be rebranded by 2020 and recover to profitability by 2021-22.”
‘We desire to be the most-loved travel company’
Shai Weiss took over as Virgin Atlantic chief executive on January 1 and launched a three-year strategic plan branded Velocity. He said the previous plan was
to: “Fix the financials without destroying the magic.” Weiss told Travel Weekly: “The magic is still there. Now we desire to become the most-loved travel company.” He suggested: “No one else
would dare say that or, if they did, no one would believe them. But we will fuse magical service with an unbelievable product. By the end of 2022, we’ll have a transformed fleet.” Weiss insisted: “We have
everything we need to become the UK’s second flag carrier.”
Virgin Atlantic boss Weiss hails ‘improved’ £26m loss
Virgin Atlantic reported a £26 million loss for 2018 despite a rise in annual revenue of £150 million. Chief executive Shai Weiss
hailed the result as “significantly improved” on the £49 million loss the carrier recorded the previous year after restating its 2017 results in line with new accounting rules. Revenue rose 5.8% year on
year to £2.8 billion, and passenger numbers increased by 4.8% to 5.4 million ahead of a capacity increase of 3.5%. Weiss said: “These results put the company in a strong position.” He attributed the losses to the weakness of sterling against the dollar, economic uncertainty in the UK “and the continued shortage of engines used on Boeing 787s”.
Virgin Atlantic reported a 10% rise in Upper Class revenue per passenger. The airline’s joint venture with Delta Air Lines, which owns 49% of Virgin Atlantic, produced a 13.5% increase in US point-of-sale bookings. Tour operator Virgin Holidays
recorded a pre-tax profit of £6 million, a year-on-year fall “due to softer demand”, but opened 22
retail concession stores in 2018 in partnership with Next. Virgin Atlantic’s transatlantic
joint venture with Delta will be expanded to included Air France- KLM this year, and the carrier will take delivery of its first Airbus A350 this summer. Weiss unveiled the carrier’s new Upper Class, premium and economy cabins for the A350 last week.
18 April 2019
travelweekly.co.uk71
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