It seems that snowball in hell has brought itself a very comfy hat to insulate itself as Virgin Atlantic has confirmed it is in “advanced talks” with “an alliance” according to Blomberg
Speaking to Blomberg, Richard Branson says:
Virgin Atlantic, the airline controlled by U.K. billionaire Richard Branson, is in “fairly advanced talks” to join an aviation alliance as the carrier seeks to boost its competitive position and restore earnings.
“Virgin Atlantic has always enjoyed its independence, but since pretty well every competitor that we have has an alliance I think we have finally decided that to survive we need to have an alliance”
Well blow me over. It’s taken Virgin THIS long to work it out?
It seems that the winds of change have finally trickled down. Hurt by the lack of BMI to boost its services, the denial of operation rights to Moscow, Virgin Atlantic has been fast running out of options.
Virgins Atlantic’s sister company – Virgin Australia has already tied up with Etihad, whilst Virgin America struggles on.
Which alliance is a tougher question. And it’s an even split two of them
- Oneworld: Not a chance due to a certain other British airline being a member
- Star Alliance: A mid-chance, namely due to the 49% ownership that Singapore Airlines have in Virgin Atlantic.
- SkyTeam: Another mid-chance to high due to the tie-ups that exist with Virgin Australia.
So which way will Virgin Atlantic go? Richard Branson hasn’t revealed any details yet, but Virgin Atlantic needs a turn around soon. Losses of £80.2 million, delays to new aircraft being posted and the the CEO – Steve Ridgway – who is resigning before Christmas this year..
Suffice to say – Virgin Atlantic has a major challenge on its hands.