Transportation Industry

Company Watch - Virgin Group

AirGuide Business, April 7, 2008

Apr 7, 2008

Boeing is trapped in a nightmare as delays on the production of its 787 Dreamliner are causing airlines to raise hell. British Airways and Virgin Atlantic are in talks with Boeing over expected delivery delays for the 787 Dreamliner aircraft they ordered in 2007. This is the fourth delay to occur on the aircraft. Virgin Atlantic is in talks with Boeing about compensation for the 15 extended-range 787-9s it originally expected to receive in early 2011, while British Air is talking to Boeing about the 24 787s the company expected in the first quarter of 2010. Mar 25, 2008

Virgin Blue[sup.1]s new international subsidiary V Australia will begin competing on the recently liberalized transpacific market from December with daily direct flights from Sydney to Los Angeles, subject to regulatory approval. The airline began selling seats Mar. 31 for the inaugural service scheduled to begin on 15 December. A Boeing 777-300ER will offer a three-class cabin, with International Business, International Premium Economy and International Economy. Business class seats will be lie-flat to 77[sup.2] (195cm) in length; 40 premium economy seats will be 20[sup.2] wide, giving a 9[sup.2] recline, and offer a minimum 38[sup.2] of legroom; economy will be in a 3x3x3 configuration, with 18.8[sup.2] seat width and 32[sup.2] legroom. Qantas has been the only Australian carrier permitted to fly to the US, but in February US and Australian governments agreed an open skies[sup.1] deal which liberalised the transpacific market just as the equivalent agreement has done between the US and EU. Sir Richard Branson, Virgin Blue co-founder, said: [sup.3]The transpacific route is in dire need of competition and a good shake-up and that[sup.1]s a challenge we are always keen to take on. Mar 31, 2008

Virgin Atlantic Airways reaffirmed its well-known interest in acquiring bmi and reportedly is seeking support from Lufthansa, which holds 30%-minus-one-share in bmi and an option to acquire Chairman Michael Bishop's 50%-plus-one-share stake by the end of June 2009, for the tie-up. Lufthansa could hold a stake in the new merged entity. Virgin and bmi held unsuccessful merger talks in 2003, but Bishop since repeatedly has stated that he is not selling his stake. Apr 3, 2008

Virgin Atlantic aims to merge with bmi British Midland and is pushing Lufthansa, which holds 30 percent minus one share in the carrier, to agree to the deal, Sueddeutsche Zeitung reported, citing Virgin's external affairs and route development director Barry Humphreys. 'We are very interested in a merger with BMI,' Humphreys told the newspaper, saying Lufthansa could hold a stake in the new merged entity. Lufthansa has a stake of 30 percent minus one share in BMI and holds an option to buy Sir Michael Bishop's 50 percent plus one share stake by the end of June 2009. The newspaper cited industry sources as saying Lufthansa would have to pay an agreed 229 million pounds plus an adjustment for inflation to acquire the shares. The remaining 20 percent of shares are held by SAS AB., which has said it may sell its stake in the carrier in the first half of this year. Lufthansa declined to comment on the matter. Apr 2, 2008

Hundreds fooled by airline prank in Australia. More than 1000 people tried to book standing-room only flights advertised by budget airline Virgin Blue as part of an April Fool's Day joke in Brisbane. Virgin's "No Chair Fares" were promoted in newspapers and on radio, offering half-price tickets to anyone willing to stand on any domestic flight, with complimentary calf massages thrown in for flights longer than two hours. About 1000 people responded to the bogus ads online by trying to book a ticket. A further 100 called the company directly. A Virgin Blue spokeswoman said the marketing prank had certainly "pulled the wool" over the eyes of the hopeful travelers. "We must admit we have caught out a lot people who have called up to book a No Chair Fare," the spokeswoman said. "It seems there are plenty of travelers who would happily stand for the duration of a flight. "Thankfully everyone has had a good sense of humor." Members of Virgin Blue's marketing team plotted the joke over casual after-work drinks. "Someone mentioned April Fools day was coming up so we thought we'd use the opportunity to do something different to get in on the spirit of April Fools," she said. "In true Virgin style we were being a little cheeky and decided to have a bit of fun." Apr 1, 2008

Editorial eMail: edit@AirGuideOnline.com

For Air Transport & Travel Business Experts contact our Director of Content Aram Gesar eMail: bizintel@AirGuideOnline.com

To Advertise: advert@AirGuideOnline.com