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| 22 June, 2009 |
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Virgin Atlantic founder Sir Richard Branson has ruled out bailing out troubled British Airways.
He distanced himself from media speculation that his airline would attempt to save its loss-making rival if it feel into further difficulty.
Sir Richard was quoted by the BBC as he prepared to mark the 25th anniversary of Virgin Atlantic by retracing the carrier’s first flight from London to New York (Newark).
He said BA’s pension burden would prevent Virgin Atlantic from mounting a takeover.
However, Sir Richard said that if BA were to fail, his airline and others would take up the slots at Heathrow that would become available and attempt to lower fares.
Sir Richard also predicted that first class air travel would disappear due to the recession.
BA lost £401 million in its last financial year and staff have been asked to work for nothing for a month. Pilots have agreed a pay cut in return for shares in the carrier.
by Phil Davies |
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Categories: Airline, Travel Agent, Tour Operator, Business Travel, Destination
| | | USER COMMENTS | | | Nick Holland
22 June 2009, 15:31:09 GMT
I really don't think so.
In his dreams.
That BA is seriously looking at a survival strategy can no longer be dismissed as wild talk, and that is very worrying.
I think however we are a long way removed from taking seriously any notion that this joker might be a player in the airline's survival.
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Robert Sarran
22 June 2009, 15:14:29 GMT
I'm not bidding for BA either!
Headlines are all well and good but shouldn’t be taken for anything more than its attention grabbing properties.
BA is unlikely to be in a position where it would need rescuing, and if ever it should then watch out, because they’ll all come tumbling down too!
BA’s losses and Virgin’s profits are all headliners, look behind the figures to get at the facts, how much of BA’s losses were down to the fuel crisis of 2008?
Certainly one of BA’s biggest concerns is its pension deficit, apart from that I don’t see BA as having any more or any less difficulties that any other carrier in the current financial climate, I don’t see credit lines drying up for BA.
BA have been a rock to the insurance industry, a constant! When that changes I guess we will all be in trouble too!
Sir Richards comments about first class I guess are in relation to classes above Virgin’s Upper Class which has always been held out as a First Class service at a Business Class fare, how does he feel about Business Class? I don’t think the premium classes will disappear, there may be some unification of classes but as we all aspire to do better, we all aspire to travel better too! And whilst we are in the doldrums at the moment we will come out of it as we always do and there will be better times ahead for those that make it, haven’t we been here before?
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Recession and Beyond...
You can discuss the issue and crisis as you like...but what will stay is the continuous squeeze on cost savings. So the results of the study just underline: the fat and comfortable days are over for now: Many Travel Managers and corporates will try to streamline their travel expenses in a strategic sense. Suppliers have to acknowledge that and trim their offers and products accordingly - if that want to stay in business.
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