Company Watch - Virgin Group

AirGuide Business, Jan 7, 2008

Jan 7, 2008

Some all business-class carriers plan to expand. Three startup carriers that operate all business-class flights say they plan to expand in 2008, and British Airways and Virgin Atlantic will experiment with a similar format, The New York Times' Joe Sharkey writes. On Jan. 9, British Airways will launch "Project Lauren," a discount mini-airline configured with mostly premium seats that will fly between large cities in the U.S. and Europe. Jan 2, 2008

Airlines are continuing to serve Kenya with no reports of alterations to services apart from Kenya Airways, which has reinstated its Kisumu-Nairobi service. British Airways flies ten-times weekly to Nairobi and says it is operating services as normal although it is [sup.3]monitoring the situation.[sup.2] Virgin Atlantic also says there are no disruptions to its daily schedule - [sup.3]there is lots of New Year traffic,[sup.2] said a spokesman. The events follow a period of relative calm in Kenya, whose capital Nairobi in particular, has enjoyed a degree of economic success, while its tourist regions have thrived as existing and new airlines serve the country. Jan 2, 2008

UK gets BAA strike reprieve while Virgin remains threatened. UK airports operator BAA yesterday withdrew a plan to close its final salary pension scheme to new employees, removing the threat of a series of strikes scheduled at its seven airports. BAA airport firefighters, security, maintenance, administrative and clerical staff belonging to the Unite union had voted to stage two 24-hr. strikes and one 48-hr. work stoppage this month, although they called off the first, scheduled for Jan. 7, after BAA agreed to negotiate. Jan 4, 2008

Virgin Atlantic added that striking staff would actually lose a week[sup.1]s pay as each outbound trip lasts three days. All affected passengers have been contacted and switched to other flights where necessary, although Virgin declined to reveal what financial impact the two walkouts would have. There was a modicum of good news for the carrier however, as threatened industrial action by BAA staff now looks to have been cancelled. Nobody was available for comment at Unite. Jan 3, 2008

Virgin Atlantic spokesman added that while there were no plans to sit down for further talks before the walkout, the union had already [sup.3]strongly recommended[sup.2] the Virgin offer. [sup.3]It[sup.1]s an unusual position for them to be in,[sup.2] he said. Two strikes are planned by Virgin cabin crew: 06:00 Wednesday 9 January to 06:00, Friday 11 January and 06:00 Wednesday 16 January to 06:00, Friday January 18. The industrial action - a first for Virgin - follows seven months of negotiations last year - with Unite saying there are differing pay rates between Virgin cabin crew and those of its competitors. It cites British Airways crew in particular, as earning up to [pounds sterling]10,000 ($19,870) more working on the same business routes. Jan 3, 2008

Virgin strike still on. Impending strike action by Virgin Atlantic cabin crew looks likely to go ahead next Wednesday Jan. 8 as both sides dig in concerning the pay dispute. It appears that no further talks are planned either today or tomorrow between the carrier and its crew represented by the Unite union, although Virgin is confident it can run nine out of ten services. The impasse follows a letter written by Virgin chairman Sir Richard Branson to all 4,800 cabin crew this week, insisting that no further money was on the table. Crew have been offered a two-year pay increase to basic pay equating to an 8.4% increase during the period. Jan 3, 2008

Britain's Rail Returns to Normal on Friday Jan. 4. Virgin Trains said Network Rail, the owner and operator of Britain's rail system, gave the green light for Virgin to resume services Friday to and from Rugby on the West Coast Main Line. Since December 24, the line (Britain's busiest long-distance rail line) has been subject to delays and service disruptions caused by construction, affecting travel for thousands of passengers. Virgin Trains is offering "Saver" fares on all trains, including peak services, for tickets sold tomorrow, as well as on Monday, January 7 and Tuesday, January 8. Customers holding tickets dated December 31, January 1, 2 or 3 who decided not to travel are eligible for a full refund. Alternatively, those customers can use the tickets on Virgin services through January 8. Visit www.virgintrains.com. Jan 4, 2008

Virgin Trains, which offers service in Rugby, said Network Rail, the owner and operator of Britain's rail infrastructure, has not yet said when the Rugby station will reopen. Until then, Virgin Trains is advising passengers to take the following alternative routes in and out of London: For Coventry, use CrossCountry/Chiltern Railways via Leamington at Marylebone; to Birmingham, use Chiltern Railways from Marylebone; to Nuneaton, ride CrossCountry/East Midlands trains via Leicester from St. Pancras; from Rugby, drive to Kettering then take East Midlands trains to St. Pancras; to northwest England, travel on Trans Pennine Express/East Midlands Trains via Sheffield from St. Pancras; for North Wales, take Virgin Trains/CrossCountry/Chiltern Railways via Birmingham at Marylebone; and to Scotland, go on National Express East Coast from Kings Cross. Jan 3, 2008