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| Founded | 1984 | |||
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| Commenced operations | 22 June 1984 | |||
| Operating bases | ||||
| Frequent-flyer program | Flying Club | |||
| Airport lounge | Virgin Atlantic Clubhouse | |||
| Fleet size | 37 (+29 orders) | |||
| Destinations | 35 | |||
| Parent company | Virgin Group (51%) Singapore Airlines (49%) |
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| Headquarters | Crawley, United Kingdom | |||
| Key people |
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| Revenue | £2,700 million (12 months to 31 February 2011)[2] | |||
| Operating income | £18.5 million (12 months to 31 February 2011)[2] | |||
| Website | www.virgin-atlantic.com | |||
Virgin Atlantic Airways Limited (operating as Virgin Atlantic) is a British airline owned by Sir Richard Branson's Virgin Group (51%) and Singapore Airlines (49%).[3] It is headquartered in Crawley, West Sussex, England, near Gatwick Airport.
It operates between the United Kingdom and North America, the Caribbean, Africa, the Middle East, Asia, and Australia from its bases at Gatwick Airport and London Heathrow Airport using a mixed fleet of Airbus and Boeing widebodied jets. Almost uniquely among major airlines, it operates no short-haul services whatsoever, with its shortest route being from London to Accra. In 2010, Virgin Atlantic carried 5.3 million passengers,[4] making it the eighth largest UK airline based on passenger numbers. In the year to February 2010, the airline made an annual operating loss of £132 million on turnover of £2,357 million.[2]
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Randolph Fields, an American-born lawyer, and Alan Hellary, a former chief pilot for Laker Airways, set up British Atlantic Airways as a successor to Laker Airways.[5] Fields got the idea of an airline from London to the Falkland Islands in June 1982, when the Falklands War had just finished and there was need for a service.[6] Fields needed expertise and contacted Alan Hellary, Laker Airways' former chief pilot, who had thought about establishing a regular, commercial service to the Falklands at the same time. Hellary was in contact with colleagues out of work following the collapse of Laker Airways and they worked on the idea.
However the short runway at Port Stanley Airport and the time to improve it made the scheme unviable, so the idea of the Falklands service was dropped. Instead, Hellary and Fields tried to secure a licence from Gatwick Airport to John F. Kennedy Airport (JFK) in New York. A three-day inquiry in May 1983 rejected it after British Airways (BA), British Caledonian (BCal) and BAA objected.
Hellary and Fields then applied for a licence between Gatwick and Newark. It was planned that British Atlantic Airways would use a 380-seat DC-10 to fly to Newark.[5] However, faced with the prospect of direct competition from People Express, a post-deregulation "no frills" discount airline at Newark, they decided to secure more funding before proceeding.
Fields met Richard Branson at a party in Central London during which he proposed a business partnership. After protracted and testy negotiations, Fields agreed to a reduced stake of 25% in the airline (renamed Virgin Atlantic) and became first chairman. Following disagreements over operations, Fields agreed to be bought out for an initial sum of £1 million with further payment on Virgin's first dividend. As a result of a High Court action, this additional payment was received shortly before Fields' death from cancer in 1997.
On 22 June 1984, Virgin Atlantic operated its inaugural scheduled service between Gatwick and Newark using a leased Boeing 747-200 (registration G-VIRG), christened Maiden Voyager,[5] formerly operated by Aerolíneas Argentinas. Part of Richard Branson's approach to business is to succeed within the first year or exit the market. This includes a one-year limit on everything associated with starting up.[7] Virgin Atlantic became profitable during the first 12 months, aided by sister company Virgin Records' ability to finance the lease of a second-hand Boeing 747. The firm timed operations to take advantage of a full summer, which included June to September – the most profitable period of the year.
In 1986, the airline added another Boeing 747 and started a scheduled route from Gatwick to Miami. Additional aircraft were acquired and routes launched from Gatwick to New York JFK (1988), Tokyo (1989), Los Angeles (1990), Boston (1991), and Orlando (1992). In 1987, a service was launched between Luton and Dublin using Viscount turboprop aircraft, but this was withdrawn around 1990. In 1988, Club Air operated two Boeing 727 jet aircraft on behalf of Virgin. These served the Luton to Dublin route until ca. 1990 as well.
In March 2000 Virgin Group sold 49% of the airline's holding company to Singapore Airlines for £600.25 million. Virgin Group still owns the remaining 51%.
In June 2002, Virgin Atlantic became the first airline to use the Airbus A340-600.
In 2003, Virgin Atlantic carried 3.8 million passengers.[8] This increased to 4.6 million in 2006, placing them seventh among UK airlines (second in terms of passenger-miles because of the long-haul nature of operations).[9] During the 2012 Summer Olympics bids, Virgin Atlantic attached London 2012 decals to the rear of many of their Boeing 747-400s.
On 31 October 2005, Virgin Atlantic operated a humanitarian aid charter flight to the capital of Pakistan, Islamabad, with 55 tonnes of aid for the affected by the earthquake in Pakistan.[10]
Virgin volunteered a Boeing 747 for a test of biofuels. In February 2008, it flew from Heathrow to Amsterdam Schiphol Airport, with no passengers, and 20% of power for one engine provided by plant-based biofuel. The airline said it expected to use biofuels based on algae.[11]
In November 2010, it was reported that Virgin Atlantic had appointed Deutsche Bank to begin a strategic review of options for the airline following the tie-up between British Airways and American Airlines.[12] By February 2011, it was confirmed that SkyTeam members Air France-KLM and Delta Air Lines had appointed Goldman Sachs to advise them on a joint potential approach for Virgin Atlantic. Etihad Airways is also reported to be considering a deal,[13] and Willie Walsh, Chief Executive of International Airlines Group, stated that they would be interested in the airline, but only for the lucrative take-off and landing slots it holds at London Heathrow Airport.[14]
Virgin Atlantic's head office, named The Office is located in the Business Quarter of Crawley, West Sussex, England, near Gatwick Airport.[15] The same building houses the corporate offices of Virgin Holidays.[16] Prior to the establishment of its current headquarters, Virgin Atlantic had its head office in Ashdown House on the High Street in Crawley.[17]
Virgin Atlantic has been a rival of British Airways since inception, as British Airways had been the only airline from the United Kingdom serving long-haul routes to destinations in North America, the Caribbean and the Far East since the BA-BCal merger in the late 1980s.[18]
In January 1991, the UK opened Heathrow Airport to Virgin when it abolished the London [Air] Traffic Distribution Rules (TDRs) in response to pressure from the industry. The London TDRs had come into effect in 1978, originally created to achieve a fairer distribution of traffic between Heathrow and Gatwick, the UK's two main international airports, to help Gatwick make a profit. The former rules stated airlines without an international scheduled service from Heathrow prior to 1 April 1977 would not be permitted operations there; instead they would have to use Gatwick. However, airlines that did not already operate at Heathrow were still able to commence domestic scheduled services there provided BAA, which ran both Heathrow and Gatwick on behalf of the Government, and the Secretary of State for Transport, granted permission.
The decision to open Heathrow to all newcomers in 1991 – other than those governed by Bermuda II – angered BA's chairman Lord King, who stopped British Airways' donations to the Conservative Party in protest. Lord King was furthermore angered by the subsequent decision of the CAA to transfer two pairs of unused slots British Airways held at Tokyo's Narita Airport to Virgin to let it increase its frequency between Heathrow and Tokyo from four to six weekly round-trips, making it easier for Virgin to compete against British Airways. Lord King called the CAA's decision, which the Government had endorsed, "a confiscation of his company's property".[19]
According to industry insiders, Virgin Atlantic had increasing financial problems. This was primarily the result of a reduction in demand for travel caused by the recession of the early 1990s as well as by fear to travel in the aftermath of the first Gulf War. Britain's Conservative Government, which had presided over the collapse of International Leisure Group (ILG) and its subsidiary Air Europe resulting in 4,000 job losses[18] was aware that Dan-Air was on the brink of bankruptcy, and wanted to avoid the collapse of another independent[nb 1] British airline, especially if its profile was as high as Virgin Atlantic's. The Government decided to let Virgin Atlantic into Heathrow despite facing opposition from British Airways.
The decision to abolish the London TDRs and to let Virgin Atlantic operate at Heathrow in competition with British Airways became the trigger for BA's so-called "dirty tricks" campaign against Virgin. In 1993 BA's PR director, David Burnside, published an article in BA News, British Airways' internal magazine, which argued that Branson's protests against British Airways were a publicity stunt. Branson sued British Airways for libel, using the services of George Carman QC. BA settled out of court when its lawyers found the lengths to which the company went to try to kill off Virgin. BA had to pay a legal bill of up to £3m, damages to Branson of £500,000 and a further £110,000 to his airline.[20] Branson donated the proceeds from the case to Virgin Atlantic staff.
In the 1990s, Virgin Atlantic jets were painted with "No-Way BA/AA" in opposition to the attempted merger between British Airways and American Airlines.
In 1997, following British Airways' announcement that it was to remove the Union Flag from its tailfins in favour of world images, Virgin introduced a Union Flag design on the winglets of its aircraft and changed the red dress on the Scarlet Lady on the nose of aircraft to the union flag with the tag line "Britain's Flag Carrier". This was a tongue-in-cheek challenge to BA's traditional role as the UK's flag carrier.[21]
"Although I did not have any direct contact with BA in relation to passenger fuel surcharges, I regret that, on becoming aware of the discussions, I did not take steps to stop them."
Relations with British Airways improved with the arrival of Rod Eddington as BA CEO though rivalry continued. Eddington replaced Robert Ayling, involved in the dirty tricks affair, who was dismissed by Lord Marshall, the long-serving BA chairman and Ayling's mentor, on behalf of BA's main institutional shareholders after BA had its first net loss since privatisation during Ayling's time during its 1999/2000 financial year.
In June 2006, a tip-off from Virgin Atlantic led US and UK competition authorities to investigate alleged price-fixing between Virgin Atlantic and British Airways.[23] In August 2007, BA was fined £271 million by the UK's Office of Fair Trading and the US Department of Justice though this was upheld on account of a guilty plea.[24] Virgin Atlantic was not fined as it was given immunity for reporting the cartel to regulators.
In April 2010, a tip-off from Cathay Pacific led to the UK's Office of Fair Trading investigating alleged price-fixing between Virgin Atlantic and Cathay Pacific on flights to Hong Kong between 2002 and 2006. Cathay Pacific will benefit from immunity as long as they continue to cooperate with the authorities. A maximum fine if found guilty is 10% of turnover which based on the £2.5bn sales for the year to the February 2009 would be £250m.[25] At this stage, the competition authorities stressed that it should not be assumed that the parties involved have broken the law.[26]
Virgin Atlantic has codeshare agreements with the following airlines:[27]
A Star Alliance member airline
In addition to the above airlines, Virgin Atlantic has partnership alliances with:[28]
Virgin Atlantic's fleet uses both Airbus and Boeing aircraft, with an average age of 9.1 years as of December 2011.[29] Boeing 747-400s and Airbus A330s are used on selected routes from Gatwick, Glasgow and Manchester, with the A330 being used on other flights as well. Boeing 747s and Airbus A340s are used interchangeably on all routes from Heathrow.
Virgin Atlantic has orders for Boeing 787–9 and Airbus A380-800 aircraft for delivery beginning 2014 and 2015, respectively. The A380 was expected in service in 2006 but was delayed until 2009 because of problems within Airbus. Virgin deferred its order to 2013, arguing it wanted the aircraft to prove itself before entering its own into operation.[30]
The order for 15 Boeing 787-9s, with options on eight more and purchase rights on 20 more, was announced on 24 April 2007. The aircraft will replace Virgin’s older A340-300s.[31] Virgin has listed Seattle, Vancouver, Bangkok, and Melbourne as possible destinations for the aircraft, saying the 787 would make possible non-stop operations from London to Perth, Australia and Honolulu, Hawaii.[32] Virgin is negotiating with Boeing and Airbus over an order for ten wide-bodied jets for the Gatwick fleet. This could be a new order for the Boeing 747-8 or for additional Airbus A380-800s.[33]
On 27 September 2006, Branson announced plans to reduce greenhouse gas emissions by cutting aircraft weight and fuel consumption. There was also an experiment in 2007 in partnership with Boeing to have aircraft towed to the runway to save fuel, as a potential change to future operational procedures.[34]
Two Virgin Atlantic aircraft are featured in the James Bond film, Casino Royale. One Airbus A340-600 (G-VWIN) and one Boeing 747-400 - along with Branson and Virgin Atlantic crew — are part of a scene at Miami International Airport, although the sequence was filmed at Prague's Ruzyně International Airport.[35] Virgin Atlantic's relationship with the James Bond franchise continues in Quantum Of Solace, where James Bond and René Mathis travel to La Paz, Bolivia on board Virgin Atlantic, in Upper Class, although the airline has never flown to any destination within South America.
Virgin Atlantic’s fleet consists of the following aircraft as of December 2011:[36]
| Aircraft | Total | Orders | Options | Passengers | Notes | |||
|---|---|---|---|---|---|---|---|---|
| J | W | Y | Total | |||||
| Airbus A330-300 | 2 | 8 | — | — | 59 | 255 | 314[37] | Deliveries 2011 to 2012. Three aircraft to be leased to China Airlines.[38][39] |
| Airbus A340-300 | 4 | — | — | 34 | 35 | 171 | 240 | Exit from service: 2013 |
| Airbus A340-600 | 19 | — | — | 45 | 38 | 225 | 308 | |
| Airbus A380-800 | — | 6 | 6 |
|
Entry into service: 2015[39] | |||
| Boeing 747–400 | 12 | — | — | 44 | 62 | 261 | 367 | |
| 14 | 58 | 379 | 451 | |||||
| Boeing 787–9 | — | 15 | 8 |
|
Entry into service: 2014[39] | |||
| Total | 37 | 29 | 14 | |||||
In the past, Virgin Atlantic has operated a variety of aircraft. The retired fleet includes:
| Aircraft | Active | Notes |
|---|---|---|
| Airbus A320 | 1995–2004 | Operated for Virgin Sun. |
| Airbus A321 | 2000–2003 | Operated for Virgin Sun. |
| Boeing 747–100 | 1990–2000 | G-VMIA named 'Spirit of Sir Freddie' after Sir Freddie Laker. |
| Boeing 747–200 | 1984–2005 | G-VIRG was Virgin's first aircraft. |
Having used a "Eurowhite" design with red Virgin-branded tailfin, Virgin Atlantic’s aircraft were painted in a red and silver livery introduced in October 2006 with the delivery of G-VRED.
Near the nose of each aircraft is a pinup girl carrying a Union flag, designed by British artist Ken White, called Scarlet Lady. White modelled the motif on the World War II pin-ups of Alberto Vargas – hence the naming one of the fleet Varga Girl.[40]
Each aircraft has a name, usually feminine, such as Ladybird, Island Lady and Ruby Tuesday, but some are linked to registrations (e.g. G-VFIZ—Bubbles). There are a couple of commemorative names (e.g. G-VEIL—Queen of the Skies—which was named by Queen Elizabeth II on 7 April 2004 in celebration of the centenary of the Entente Cordiale). An exception is Spirit of Sir Freddie. An early Boeing 747, it was named in honour of Freddie Laker of Laker Airways, who helped Virgin Atlantic run following the demise of his own airline.
G-VFAB—Lady Penelope—gained a special livery to celebrate Virgin Atlantic’s 21st birthday. The Scarlet Lady was enlarged and moved to the rear of the aircraft, a Boeing 747–400, and the aircraft was temporarily renamed Birthday Girl. The aircraft made a special flight recreating the first Virgin Atlantic flight, from London to New York, with Richard Branson and a number of special guests onboard.[41]
In 2010, the livery was replaced by a new design, featuring a larger logo and slight changes to the Scarlet Lady. The wingtips, previously carrying the Union flag, were repainted red, with the Virgin logo on the inside facing passengers onboard. The Virgin Atlantic logo was also added to the underside of the aircraft.[42]
Over the years, Virgin has used many slogans, including:
Used in the late 1990s on several 747-400s to express Branson's displeasure with the proposed British Airways/American Airlines partnership. BA/AA combined held 100% market share on several US-UK routes (e.g. Dallas-Fort Worth to London), and a market share of more than 50% in several more (e.g. Chicago to London, JFK to London). The slogan was brought back starting in September 2008 after merger talks between British Airways, Iberia Airlines and American Airlines began.[43]
Written on the back of the Airbus A340-600s because they were the longest passenger aircraft in the world.[44] The new title of the longest passenger aircraft will be claimed by the Boeing 747-8 when it officially entered service in 2011.
Originally an Airbus slogan when newer versions of the A340 were built until Virgin inherited the slogan. The slogan was written on the engines of the planes, because all Virgin's planes at the time had four engines as opposed to BA's long haul twin-jet Boeing 777s and Boeing 767s. The slogan was removed in 2006 because it "had run its course and it was time to move on"—Virgin would later order Boeing 787 Dreamliner twin-jet aircraft in 2007, as well as the Airbus A330-300, another twinjet, in 2009.
Introduced as part of the 25th anniversary television advertisement in 2009.[45]
New, revamped 2010 slogan, which made its first appearance on the new commercial, alongside the new logo and livery.
Most Virgin Atlantic aircraft are in a three-class configuration with Economy, Premium Economy, and Upper Class cabins. The airline's Airbus A330-300 aircraft are not fitted with the Upper Class cabin.[37]
Economy is the standard coach class of Virgin Atlantic. Amenities include free meals, drinks and amenity kits for all passengers. Seats have a minimum seat pitch of 31 in (depending on the aircraft type).[46] In addition, updated economy seats have adjustable lumbar support, and are being installed across Virgin Atlantic’s fleet.
Premium Economy has a separate check-in area, priority boarding ahead of Economy passengers, a wider seat with more legroom than Economy, and additional cabin services such as a preflight drink and dedicated cabin crew. As with Economy, in November 2006, Virgin launched an updated product with a wider seat that also supplies laptop power. It is being installed across the fleet starting with London Heathrow-based A340 aircraft. As of May 2010 all Airbus A340s, A330s, and London Heathrow Boeing 747s have the new product. The 747s based at Heathrow have an updated configuration of 62 seats all located downstairs.[47] The upper deck on Gatwick Boeing 747s is entirely Premium Economy (the original seats), with a further two Premium Economy rows downstairs. The Premium Economy cabin on the new A330-300s consists of 59 seats at the front of the aircraft.[48]
Upper Class is the equivalent of business class on all Virgin Atlantic Airways’ flights. Virgin does not offer a traditional First Class cabin service. The Upper Class seat is claimed by the airline to be the biggest fully flat bed of any airline’s business class service (it is approximately 202 cm long and 84 cm wide); however, Air Canada and Singapore Airlines have made similar claims.[49] The seat offers in-seat laptop power and power leads for iPods, and Upper Class passengers have access to a chauffeur, drive thru check-in and private security channel (at some airports), Virgin Atlantic Clubhouses, a larger menu than that of Premium Economy and Economy passengers and an in-flight bar. The seats in the Upper Class cabin are arranged in a Herringbone seating design. Gatwick based aircraft have a smaller Upper Class cabin with 14 seats in the nose of the Boeing 747-400 aircraft whereas 747-400 aircraft based at London Heathrow are configured with a larger Upper Class cabin split over the lower and upper deck with a total number of 44 seats. A340-300 aircraft have 34 Upper Class seats whereas all A340-600 aircraft are configured with 45 Upper Class seats. There is currently no upper class on the new A330-300 aircraft.[48]
All Virgin Atlantic aircraft offer personal seat-back televisions that provide entertainment channels. Most aircraft (some 747-400s, one A340-300 and all A340-600s) have an Audio/Video on Demand (AVOD) system called V:Port. The new A330-300 aircraft have a new touch screen AVOD system called JAM. Older "Odyssey" and "Super Nova" IFE systems can be found on aircraft in the fleet, mainly on aircraft based at Gatwick Airport. They both have smaller screens and display audio and video on a loop rather than broadcasting on demand.
| Tier Level | Benefits | Requirements to earn | Requirements to retain |
|---|---|---|---|
| Red |
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Free membership | N/A; miles expire if no account activity for 36 months |
| Silver |
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Earn 15 tier points within a membership year | Earn 15 tier points within a membership year |
| Gold |
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Earn 25 tier points within a membership year having reached Silver | Earn 40 tier points within a membership year |
Virgin Atlantic carried over 5.2 million passengers during 2010, a 2.3% reduction compared with 2009.[50]
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