Virgin Atlantic Airways is to set up a business class only carrier initially serving the US from Europe, as the impending reality of Open Skies liberalises transatlantic opportunities.
Speaking to ABTN in Nairobi as Virgin launched services to Kenya, chairman, Sir Richard Branson, said that the operation would begin flying from Europe to New York and other US cities, swiftly followed by the UK.
”We will set up and market one of these [business only] airlines that will be competitive, although we don”t want to compete with Virgin Atlantic,” he said, noting: ”It will be a hybrid carrier.”
Branson added that Virgin was currently in talks with manufacturers for a suitable aircraft, but remained tightlipped as to any possible configuration or model, confining himself to noting that it would be one of the big four of Airbus, Boeing, Bombardier and Embraer.
If the latter two, any eventual decision would clearly be predicated on a smaller all-business model such as PrivatAir”s A319, able to fly transatlantic as a minimum requirement.
”We have been a bit slow in this area, although we have had plans for around ten years ” I”m extremely excited,” Branson said. ”We will operate initially out of Paris, Frankfurt, Milan and Zurich to New York, but clearly not with an aircraft in our current fleet.” PrivatAir has also announced plans to feature a 787 in its portfolio and with Virgin announcing a 15-strong order for the Boeing machine recently, it too, could be a potential option.
Open Skies will allow airlines such as Virgin to operate from European Union States to the US and Branson maintained that it was this opportunity that was driving the decision to launch from the continent.
”We think our quality of product is good enough to bring into Europe and Open Skies allows us to do that and broaden our market,” he said. ”We could offer a lower price or match that of the others and bring our frequent flyer programme in as well.”
Whether or not the Virgin name is retained for the new operation is ”very much in discussion,” but under whatever guise, it will also run out of the UK during the next 18 months.
UK business class only operators serving the US, namely Eos, Silverjet and Maxjet, use non-Heathrow bases such as Luton and Stansted, with Branson noting that any final decision to use London”s premier gateway or not was still under internal debate.
The Virgin chairman also said that the new service would not cannibalise the carrier”s existing premium offering of Upper Class, but it would feature ”the usual Virgin innovation.”
Any new airline would clearly galvanise an already successful sector that is spawning several operators across Europe and whose attraction lies in undercutting traditional flag carriers” high first and business class fares.