Company Watch - Virgin Group

AirGuide Business, Sept 1, 2008

Aug 31, 2008

Virgin Group is SNA's largest shareholder at 29.9% as a result of the merger of Brussels-based LCC Virgin Express with full-service competitor SN Brussels Airlines in 2006. Lufthansa's interest in Brussels Airlines coincides with its confirmed interest in bidding for the Austrian government's stake in Austrian Airlines Group. The German carrier also is talking with TUI Travel and Thomas Cook Group about a possible three-way combination of their low-fare subsidiaries. Aug 29, 2008

Virgin America launches JFK to Las Vegas. Launched only on 8 August 2007, and not without some high level discussions regarding ownership, Virgin America has celebrated its first year of flying. On Thursday 4 September it will introduce a daily direct New York - Las Vegas service. For the first month of the route, uniquely, the first class cabin will be named after a highly successful TV show, Entourage. The unveiling of [sup.3]Entourage Air[sup.2] will serve as the kickoff of a larger licensing partnership between HBO, the TV station, and Virgin America, allowing the airline to offer premium HBO content on RED, its interactive, in-flight entertainment system. Virgin America is a two class service on all flights and passengers benefit from mood lighting, said to be the first on a US carrier. First Class seats offer 55 inches of pitch and are 28 inches wide. These seats feature power-ports, adjustable headrests, a massage function, and various recline controls. Passengers seated in the premium section receive complimentary meals, refreshments, and alcoholic beverages and courtesy use of the RED movie catalogue. Among a number of innovations Virgin America incorporates a "food button" or touch-screen seatback food ordering system, at every seat. Aug 28, 2008

Virgin Atlantic passenger numbers increased 7.6% to 5.7 million as it expanded its number of destinations to 30. Premium passengers rose 22% during the year, and Virgin claimed it "took market share from BA and other carriers." Aug 27, 2008

Virgin Atlantic pre-tax profit for the fiscal first quarter ended May 31 came in at [pounds sterling]23.5 million compared to a loss of [pounds sterling]1.2 million in the year-ago period. Revenue jumped 16% to [pounds sterling]645.3 million and load factor gained 2.2 points to 77%. Virgin said its cash position at the end of the fiscal year was nearly [pounds sterling]600 million and grew to [pounds sterling]838 million at the end of June, raising speculation it might once again try to acquire bmi. The latter recently valued itself at [pounds sterling]750 million after including, for the first time, the value of its slots at LHR. Aug 27, 2008

Virgin Atlantic yesterday reported a net profit for the year ended Feb. 29 of [pounds sterling]47.7 million ($88.2 million), up from [pounds sterling]6.6 million the previous year, citing a surge in business travelers at Virgin Atlantic Airways. Pre-tax profit before special items, which included [pounds sterling]32.5 million in provisions for the refund of passenger fuel surcharges as part of a court settlement for colluding with British Airways on long-haul flights, rose 38% year-over-year to [pounds sterling]60.9 million. The company received a [pounds sterling]9.1 million boost from its minority investment in Virgin Nigeria. Group revenue rose 9.1% to [pounds sterling]2.34 billion. Aug 27, 2008

Virgin Atlantic, the airline controlled by British entrepreneur Richard Branson's Virgin Group, said its annual profit rose 38 percent, helped by an increase in bookings from business passengers. Virgin Atlantic, which specializes in long-haul flights to North America, the Caribbean, Africa and Asia, said its underlying pre-tax profit for 2007/08 was GBP60.9 million pounds (USD$112.7 million), up from GBP44 million the previous year. The carrier attributed the increase to a rise in business travel bookings, with premium passenger numbers up 22 percent on the year, helping boost group sales by 9.1 percent to GBP2.34 billion. Virgin Atlantic, 49 percent owned by Singapore Airlines, added that it had attracted customers from British Airways due to "ongoing problems" at its rival's new Terminal 5 at Heathrow Airport. Terminal 5 was hit by severe disruption due to baggage-handling problems shortly after it opened in March. In a statement, Virgin Atlantic chief executive Steve Ridgway said the airline was "well placed to succeed", despite high oil prices and weakening consumer demand. Aug 26, 2008

Virgin Atlantic Airways selected Mercator's Skychain as its new cargo reservation and business management solution. Implementation is expected by May 2009. Aug 28, 2008

Virgin Blue inked a maintenance and overhaul agreement with GE for the Australian carrier's CFM International CFM56-7B engines. The six-year agreement is valued at up to $300 million. Services covered include overhaul, on wing support, new and used serviceable parts, component repair, technology upgrades, engine leasing and diagnostics. Low-cost carrier Virgin Blue operates 68 next generation Boeing 737-700 and -800 aircraft and Embraer E-190 and E-170 aircraft on more than 2,100 weekly flights to 24 Australian locations and eight other international destinations. Aug 27, 2008