Virgin Makes Further Moves on China

World Airline News, July 23, 1999

Virgin Atlantic has set in motion the second step in its program to establish a domestic service in China.

During the July official inaugural flight of the British carrier's Heathrow-Shanghai service, chairman and entrepreneurial guru Richard Branson announced that the airline is actively lobbying the UK Civil Aviation Authority for two further slots.

"Our immediate focus in the region is to expand our London routes, but we are already in discussions with several high-level Chinese officials and a number of airlines with regard to establishing either codesharing agreements or even a domestic Virgin service throughout China," said the carrier's Paul Moore.

These talks include protracted negotiations with political highflyer Han Zhen, a vice mayor of Shanghai, and China Eastern Airlines.

But Virgin's horizons are even broader. Establishing a Shanghai base would complete two thirds of a worldwide route. Only an east coast U.S. port of call - always on Virgin's agenda, but hindered by the breakdown in bilateral talks between the U.S. and the UK - would be necessary to complete a global link.

"China is an economic powerhouse, and is looking for a lot of direct investment. Virgin is the type of investor they want."