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You are here: Home / News / Hell freezes over – Virgin Atlantic in talks to join “an alliance”

Hell freezes over – Virgin Atlantic in talks to join “an alliance”

26/10/2012 by Kevincm

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.

Related

Filed Under: News Tagged With: SkyTeam, Star Alliance, Virgin Atlantic

Comments

  1. Gene says

    26/10/2012 at 5:00 pm

    Since the loss of bmi means that Star Alliance has no hub in London has me betting on Star. However, as one who holds way to many DL miles, SkyTeam might be better for me.

  2. Gene says

    26/10/2012 at 5:02 pm

    I really do know English! 🙂

    • Kevincm says

      26/10/2012 at 5:09 pm

      Almost as much as me 😉

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