p42-43 air nov7 4/11/08 17:58 Page 42
Air
Chris Gray
020 7921 8003
cgray@ttglive.com
For the latest news about flights, airlines and airports, visit
ttglive.com/air
Interview Steve Ridgway, Virgin Atlantic
Virgin Atlantic may have
James Bond as a repeat
customer but it is facing the
Virgin chief finds
toughest challenges in its
history as it prepares to
celebrate its 25th anniversary
solace in strategy
next year, chief executive
Steve Ridgway tells Chris Gray
V
irgin Atlantic’s year-on-year sales long-haul network with BMI’s short-haul routes that they don’t let things happen that are to the
dropped in October for the first time to create a stronger competitor to BA. detriment of the industry because times are
since the combination of fuel prices Ridgway is coy about the details of how such a tough and the economy is in difficulties.”
and credit crunch created the airline tie-up might work but says it could go beyond
industry’s “perfect storm” this year. simple code-share; the speculation is it could Regulation
The drop was just a couple of percentage involve buying out Lufthansa or negotiating a Virgin is pinning its hopes on the US regulators to
points, but until then Virgin Atlantic’s business three-way deal with the German flag-carrier. block the deal, but as a general rule Ridgway is
and leisure bookings had been running ahead of Joining forces with BMI would give Virgin a no fan of regulation, which he believes should be
last year. feeder network of short-haul routes that would restricted to safety, security and competition
Chief executive Steve Ridgway is not unduly turn Heathrow into a hub, and would give the policy – with existing rules on ownership torn up.
alarmed by the change in direction. He feels combined carrier about 14% of Heathrow’s slots. Despite fuelling the development of the global
Virgin Atlantic is better placed to weather the It would still have far fewer than BA, which has economy, aviation is the only major industry still
storm than many airlines, but he does believe about 41% of the Heathrow slots. held back by rules limiting foreign ownership, he
this winter and 2009 will be the toughest he has Ridgway says the difference in scale means believes.
seen in his 18 years at the airline. Virgin is not being hypocritical by pursuing “The jet engine has made the global economy
He was speaking the day after Lufthansa close ties with BMI/Lufthansa while simul- happen; without it the Caribbean economy
announced it had bought a controlling stake in taneously opposing BA’s plans to merge would not exist beyond a few fishing boats.
BMI. On the same day, Quantum of Solace – with American Airlines and Iberia. But while every other industry has sorted
featuring James Bond flying Upper Class on “The UK market accounts for 34% of itself out – telecoms, computers, automotive
Virgin Atlantic – opened in London. traffic between Europe and the US, and are all global industries now – the airline
For Ridgway, the first event symbolises how Heathrow is 25% of that. BA has already industry hasn’t,” says Ridgway.
the industry has reached a “tipping point” in got 40% of the slots and if you add “But there is no rational reason why it
terms of consolidation. American, the two airlines should not be deregulated. The cold
The second is symbolic of how his airline hopes have up to 50% of all slots war ended 20 years ago and all
its niche position in the market and reputation and 60% of the prime this business about needing
for style will help it ride out the downturn. early morning arrivals.
“We are at a
fleets of aircraft as strate-
Ridgway takes some delight in explaining how “Consolidation gic assets is nonsense.”
British Airways will be unable to edit out the needs to take place in
tipping point,
sequence from Quantum of Solace as it did with a way that protects
but regulators
Bond’s first Virgin Atlantic appearance, in Casino and enhances the in-
Royale, because it contains a key twist in the plot. dustry so there is a
must not let
But while clever marketing will play its part in choice, with groups
things happen
Virgin’s strategy for the next 18 months – expect coming together
a major advertising campaign for the 25th to provide more
to the detriment
anniversary in June – the immediate priorities effective competi-
of the industry”
are more about Heathrow slots, mergers, routes tion rather than
and regulation. airlines using it
to extend their
Lufthansa/BMI position.
As soon as Lufthansa revealed it was taking con- “We are at a tip-
trol of BMI, Virgin rushed out a statement saying ping point and regula-
the move was a clear opportunity to combine its tors need make sure
42 07.11.2008
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108