Says Plan Will Strengthen Its Network, Grow Profitability

Virgin Atlantic has announced plans to cut two long-haul routes as part of an overall restructuring effort, while adding routes it feels will help the airline grow to record levels of sustained profitability by 2018.

Building on its existing two year recovery plan, which the airline says is on target to deliver an annual profit by the end of 2014, the airline says it is now shifting focus onto positioning its business for long term success.

Virgin Atlantic plans to update its network and make significant investment into the Virgin Atlantic customer experience. The airline said in a news release that it has identified "opportunities for investment into its transatlantic schedule" as it looks to maximize the benefits of its joint venture partnership with Delta Air Lines.

The network changes will deliver up to five new daily transatlantic flights and see over 500 more Virgin Atlantic flights operate in summer 2015 compared to summer 2014.
The proposed changes include:

• A new daily service from London Heathrow to Detroit
• An additional daily service from London Heathrow to New York, JFK
• An additional daily service from London Heathrow to Los Angeles
• An additional daily service during the summer season from London Heathrow to Atlanta
• An additional summer seasonal service from London Heathrow to San Francisco flying five times a week
• An additional daily service during the winter season from London Heathrow to Miami
• A transfer of operations with joint venture partner Delta Air Lines that will see Virgin Atlantic fly a daily service between Manchester and Atlanta and Delta fly one of Virgin Atlantic’s existing London Heathrow to Newark services.

In addition, Delta Air Lines will launch a new daily service between Manchester and New York JFK in Summer 2015.

In order to maximize these opportunities, further proposed changes will include:

• A withdrawal of operations to Tokyo Narita with the final flight from London to Narita on 31 January 2015 and the final flight from Narita to London on 01 February 2015.
• A withdrawal of operations to Mumbai with the final flight from London to Mumbai on 31 January 31st 2015 and the final flight from Mumbai to London on 01 February 2015.
• The summer seasonal service from London Heathrow to Vancouver will not return after this season’s flying program is completed on 11 October 2014.
• The winter seasonal service to Cape Town will operate as planned in winter 2014/15 but will not be renewed the following winter. The final flight from London to Cape Town will be on 26 April 2015 and the final flight from Cape Town to London on 27 April 2015.

The airline says the intended changes will "enable Virgin Atlantic to better utilise its fleet by flying routes which deliver maximum profit or strategic importance, while matching customer desire to travel to other global destinations."

Virgin Atlantic says it remains deeply committed to all of its global destinations and its network will include a continued presence in South Africa through its Johannesburg service, a continued presence in India through its Delhi service, as well as flights to other key destinations in Asia, Africa, Caribbean and the Middle East.

“Our ambition is to be profitable for the long term, earn competitive returns, and invest those into providing the very best experience for our customers on the routes they most want to fly," said Craig Kreeger (pictured), Virgin Atlantic Chief Executive. "Transatlantic flying has always been at the heart of our network and our most financially successful region. (This) announcement allows us to play to our strengths and focus our network on routes between the UK and US, as well as other critical global destinations that are most important to our customers.

"We are confident that with this strengthened network, our new aircraft and our welcoming people delivering unrivalled service, we have all the right ingredients to achieve long-term success.”

Among the plans the airline has set out is a commitment to investing in customer experience. A major program of work is already underway that will see £300 million (approx $490 million) invested by the end of 2018, on the ground and in the air. The imminent arrival of Virgin Atlantic’s first Boeing 787-9 will continue a fleet modernization program of over £2 billion (approx $3.27 billion) that will give it one of the youngest fleets in the world.

Virgin Atlantic said it would like to thank its customers and staff in Tokyo, Cape Town, Mumbai and Vancouver "for their loyalty and commitment to our services. In the future if Heathrow gains its long overdue expansion, Virgin Atlantic would love to re-enter Tokyo, Cape Town, Mumbai and Vancouver."

(Images from file)

FMI: www.virginatlatnic.com