Virgin particularly good in weathering the storm!

Virgin seems to be much better placed to weather the financial storm than the majority of airlines.

They have reported a pre-tax profit of 72 million for the six months to the end of August 2008, an increase of 43 million for the same period of 2007. Revenues were up by 15% to 1.37 billion.

Steve Ridgway explained the organisation had 'cushioned our business well' to remain robust during the present slump in a speech at the International Aviation Club

He confirmed VS had 688 million cash in the bank at the end of the first half of the financial 2008/09, compared with 599m at the end of the last financial year (2007/08).

The key figures are passenger traffic is up 3% to 3 million for the first six months and UC is up 6% year on year.

Compare that with OAG projections.

U.S. Market Worsens with 10.6% Cutback in Flights and 9.2% Drop in Available Seats
Global Capacity 5.2% decline
Europe Capacity Cuts Double
6.5% Capacity Reduction in Asia
Transatlantic and Transpacific Routes Switch from Growth to 3% Drop

Problems in the U.S. economy resulting in worse than expected declines in airline capacity this winter: domestic flights to fall by almost 11% and capacity by 9% in the 4th quarter compared to a year ago,
Winter schedules show a 5.2 % decline in capacity and a 6.1% decline in the number of flights. The latest figures reveal that the world's airlines will offer 46.3 million fewer seats for October, November and December 2008, and 451,000 fewer flights.

U.S. domestic market accounts for 21.4 million of the cut in available seats; 46% of the global decline, and a staggering 59% of the global drop in frequencies with 265,000 fewer flights.
Flights and capacity within Europe are also showing worsening cutbacks. 5% lower than for Q4 2007 and seat capacity is now 5.6% lower.

Latest figures suggest a reduction of 2.9% for transatlantic capacity, reversing the earlier schedule analysis of 2% growth.

Interesting how well VS are doing in comparison.
Hey, Steve, can we get UC stocked properly with champagne?
Airbridges back at Manchester?
And the LGW fleet upgrade rescheduled?
Give something back to all those passengers who are supporting you!

'"Give something back to all those passengers who are supporting you!'

Bill i agree with that sentiment.

Fleet Upgrade @ LGW would be nice. Get back to the front Virgin.
"

Part of supporting and loyalty is not to expect anything back until the storm is properly weathered when I am sure VA will reward its loyal customer base once they have consolidated
and ensured the security of themselves and dedicated staff.

What we should expect is the services as advertised especially in premium cabins. As opposed to luring people to buy a product only to be told on the day ooops it wasn't loaded as if we were stupid enough to believe it was a one off error.

Originally posted by Bill S

He confirmed VS had £688 million cash in the bank

I hope it wasn't one in Iceland[:(]

Iain

Bill your comments are spot on. I think the LGW/Man Fleet needs the upgrades, lets hope Mr Ridgeway takes note.

[HighFlyer]

As much as i dislike the penny pinching of late, I agree with EGG. I'm not looking to VS to make any real improvements until the airline industry is more stable and will not put them at risk financially. What I do hope they can do is be honest with passengers about the cost cuttings and not hope they can 'get away' with cutting corners.

Thanks,
Sarah

[Pete]

Having flown on an AA domestic flight yesterday, I've seen first hand real penny-pinching in one of the largest carriers in the world (if not the largest); and it doesn't work - or at least, it leaves a bitter taste in your mouth sour enough to make you reconsider flying with them ever again.

From the farce at check in (very slow lines, no separate ticketing desk, agents who couldn't seem to care less nor bother to explain their proprietary systems), you have to pay for checked bags (our couple each costing $80 - as much as the fare itself on the short hop from Orlando to Miami). We could, of course, done what they are encouraging us to do, and take the smaller cases on board along with our tote bags - as most of the rest of the passenger are doing. It would have saved us $50, I suppose, but there really wasn't room in the cabin and the system is just broken.

The flight itself was uneventful, and I should be thankful it was only an hour, as my seat in particular was a lumpy experience. It was frustrating, however, at the other end having to wait almost an hour for luggage to come through on the belt after paying a premium just to get them in the hold. And our bags were some of the first off.

Disinterested staff, nickel-and-dime'ing passengers and substandard service at AA highlights how pleasant it is to be on Virgin, were despite the little niggles about product erosion and consistency - it's no where near as bad as the US domestic market is headed.

Pete - couldn't agree more with what you say. That, alas, is the experience of flying coach US domestic.

VS has at least got some pointers of not where to end up! However, just standing still is never an option - if VS is really luring passengers into premium cabins it has to then consider how to retain them. Winning is only part of the battle so maintaining every aspect of the service is vitally important.

Stephen,Pete,
I completely agree.
The figures at the head of this thread show just how serious the position is in the US - and how VS are dealing with the situation in a much superior way.

The threats to airlines are great but now would seem to be the time to maximise opportunity - and we will not do that by following the competition.
We are gaining in UC numbers when almost everyone else is dropping - but we will only maintain that gain if we can maintain the service that is attracting the new pax.

Virgin have gained a reputation with UCS and CH. It would be a great shame if that reputation is damaged by short-sighted cuts that gain very little and could lose so much.

The points raised re LGW/MAN fleet refurbishment amongst others and the need to look at ensuring that the increases in revenue are maintained by good service for loyal customers are important.
We flew MAN to MCO in May in PE. and were subject to the Airbridge issue. On our return we waited for 1 hour for baggage after exiting the aircraft quickly. Whilst accepting the fact that handling staff can be a law unto themselves, the bus transfer and further transfer of bags only increases dissatisfaction for all. I recommendeed VS to friends who suffered the shambles also. They have returned to Delta!
Look out VS. savings-yes. Pennypinching-no!

Originally posted by albertlord
The points raised re LGW/MAN fleet refurbishment amongst others and the need to look at ensuring that the increases in revenue are maintained by good service for loyal customers are important.
We flew MAN to MCO in May in PE. and were subject to the Airbridge issue. On our return we waited for 1 hour for baggage after exiting the aircraft quickly. Whilst accepting the fact that handling staff can be a law unto themselves, the bus transfer and further transfer of bags only increases dissatisfaction for all. I recommendeed VS to friends who suffered the shambles also. They have returned to Delta!
Look out VS. savings-yes. Pennypinching-no!

imho and without disrespect if your buddies returned to Delta just because of an airbridge then Delta is the best place for them. People book a flight to carry them in the sky not to be carried on to the plane and spoonfed if that was the case airbridges would have been listed in the services offered for the price.