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Virgin Atlantic’s Upper Class cabin features in the latest James Bond film, Quantum of Solace (right)
Ridgway believes it is vital that the next expenditure is in contrast to the delays with its
stage of Open Skies – which will end ownership Boeing 787 Dreamliners, which were forced on
restrictions on US and EU airlines – goes ahead as the airline by production difficulties and strikes
planned by 2010. at Boeing. Ridgway does not now expect to re-
If it doesn’t, Virgin is prepared to insist that a ceive the aircraft until early 2013, two years late.
“claw back” clause is put into effect, scrapping In the meantime, wholesale capacity cuts are
the liberalisation of March this year that allowed not an option, so instead staff are being “pushed
more US carriers to fly from Heathrow, after they hard” to look at making changes that do not
paid up to $50 million for a pair of slots. harm customers’ experiences but do save money.
One saving was the decision earlier this year
Savings to end the inflight massage service for which They would remain “critical” to Virgin’s
Virgin’s Heathrow slots may be its most prized Virgin Upper Class had been renowned. distribution in the UK and all over the world, in
possessions but Ridgway says they are one factor Ridgway says the change was overdue as contrast to BA’s aggressive promotion of
BA.com.
limiting its freedom of manoeuvre if trading the service had been available for 20 years and Leisure customers, many provided by agents,
conditions get really tough next year. similar services were now available at most appear to be holding up well. “It appears to be
“We have got the hatches battened down and if shopping centres. He believes most customers discretionary short breaks to Europe that are
we have to make some moves we will, but we are would happily see it go if given a choice between being hit, not long-haul annual holidays,” he says.
a bit limited in what we can do because of the that and Virgin’s more recent innovations such “Virgin Holidays forward bookings, from the
need to protect our Heathrow slots. If you with- as the Upper Class wing at Heathrow that gives people that decide early and choose the best
draw routes and frequencies you can lose them.” passengers a private security tunnel to their flights and best hotels, are well up on last year.”
Another limitation on its responses is Virgin’s lounge after arriving in a private limo. So in both the leisure and business sides of
business model of offering a daily service to a The wing celebrated its first anniversary this Virgin’s business, Ridgway says he has reason to
range of destinations. Responding to falling week with an 11% increase in business travellers believe the recent dip in year-on-year bookings
demand by cutting capacity would go against the over the last 12 months. should not be seen as too significant.
model and could harm perceptions of the airline. “Everybody is so heads down and gloomy and
Virgin has reduced frequencies on its New York Bookings worried. We are not immune to what’s going on
services and added a Hong Kong service to capi- Agents, who provide 75% of Virgin Atlantic’s but we’ve done a lot of tuning of the system and
talise on the collapse of Oasis Hong Kong Airlines. business, can be assured the airline is not we invested very heavily in the product, and
It has also delayed the delivery of its A380 planning a big push on direct sales as a money at Heathrow, to make sure we have the right
superjumbos to 2013. It decision to delay that saving measure, Ridgway says. response to Terminal 5. We are in good shape.”
ARRIVE IN JAPAN ON THE DOUBLE
Japan Airlines, Asia’s largest carrier, is the only airline to offer daily non-stop flights from London Heathrow to
both Tokyo and Osaka. With convenient flight times, JAL really is the best option when it comes to arriving in
Japan on the double.
Visit
www.uk.jal.com or telephone 0845 7 747 700
07.11.2008 43
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