One-on-one with Virgin Atlantic's Barry Humphries

World Airline News, Dec 18, 1998

LONDON - Virgin Atlantic Airways, like most major international carriers, is still sorting through its options for advancing its global network. Barry Humphries, as Virgin's director of external affairs and route development, is keenly aware of the need to expand routes, while at the same time maintaining consistency and quality of service. Before coming to Virgin in 1995, Humphries worked economic regulatory practices for the U.K.'s Civil Aviation Authority.

Humphries talked with WAN contributing Editor, Sandra Arnoult, at a recent conference on global airline alliances. Q: How does Virgin feel about the stalled alliance efforts between British Airways and American Airlines? A: Since the alliance was announced in January 1996, one of our main objectives has been to stop its approval, so we're certainly pleased. We're not sure what will happen now. They may be looking for a more limited agreement. It's a mystery where we are at the moment. I assume they don't expect to get full anti-trust immunity. The question is whether they can get limited approval (for) code share flights beyond the gateways.

Q: Tell us about some of your route expansion plans for Virgin.

A: We just started service to the Caribbean and we are seeking rights to Moscow, Cape Town, Shanghai, Bombay and Las Vegas. All are locked in some ways to bilaterals. (Editors Note: After this interview was conducted, the U.K. Civil Aviation Authority on Dec. 16 awarded British Midland Airways the right to fly between London and Moscow, reversing an earlier decision to award the route to Virgin Atlantic.) Q: Do you have any new aircraft on order? A: We're expanding rapidly. We have 24 aircraft at the moment.

This year, we will have two new A340s, a new 747-400 and two used 747- 200s. We have four former Cathay 747s for delivery next year. We are the launch customer for the A340-600 with 10 firm orders and eight options starting in 2002.

Q: The wave of the future seems to be moving towards alliances, code sharing, joint marketing, even mergers. Where does Virgin stand? A: We're cautious about this. Virgin is a unique airline in many ways and wouldn't want to be subsumed. We are doubtful about many of the benefits claimed regarding alliances.

Q: What is Virgin looking for in the coming year? A: We hope the barriers for expansion will be removed, both bilaterals as well as slot barriers at Heathrow and Gatwick. We want to operate to Chicago and Toronto. Stansted could be a third base, but for an airline of our size that would be un-economical. We're looking at setting up an airline in the U.S. We're keeping our options open.