Virgin Atlantic this week hosted a 40th birthday party for the ages in Las Vegas; Laura Millar finds out how and why Richard Branson’s carrier has stood the test of time, and what’s next for the travel trade.
"We started out with just one aircraft, a second-hand 747 – a lot of people didn’t even give Virgin Atlantic 12 months," admits Richard Branson, candidly, at a press conference marking his airline’s 40th anniversary – and the resumption of Virgin’s Manchester-Las Vegas route after five years.
"And with competition like British Airways, Pan Am, TWA [Trans World Airlines] and several other successful airlines, I’m not sure we did either!"
Virgin Atlantic’s inaugural flight, onboard that second-hand 747, took off from Gatwick on 22 June 1984 bound for Newark; four decades hence, and not only has Virgin Atlantic survived, it has positively thrived, with several of those former competitors having fallen by the wayside.
One of Branson’s maxims, in his own words, is "screw it – let’s do it". His start-up has consistently innovated over the past 40 years, offering seat-back TVs, flat beds in business, onboard massages and a clubhouse instead of an airport lounge.
And just last November, Virgin Atlantic operated the first commercial transatlantic flight powered fully by sustainable aviation fuel (SAF) – Flight 100.
All that aside, Branson credits the airline’s employees for its longevity. "The reason we’re still here is that, thanks to the skills of everybody working with Virgin, we’ve kept the fun going," he insists. "We have wonderful teams of people who look after everybody impeccably. They do it with a smile, and a laugh, and people come back for more. It is possible to be the David versus the Goliaths, and to survive and succeed."
Working with the trade has been crucial to Virgin’s business, chief executive Shai Weiss asserts. "As a full service, omni-channel carrier, the trade – leisure and corporate – has been essential to our success and, more recently, to our transformation," he explains.
"They supported us through Covid and they remain loyal to us today. We’re comfortable selling direct, but we have an ethos of working with the best partners – and the trades represent 35% of our revenue. That’s why it’s been so special to have them here in Las Vegas to celebrate our 40th anniversary with us. Their support is constant and stronger than ever."
Weiss adds: "Business is really strong, up on this time last year. We’re hearing from our trade partners the US is trading down 10-15%, but we’re bucking that trend. Customers are still choosing to travel with us."
There are exciting trade developments in the pipeline, too. "Phase two of SkyHigh Club, our agent incentive scheme, is rolling out at the end of the year," Weiss reveals. "We’re rewarding agents for learning about Virgin Atlantic and [joint venture partner] Delta and what we both offer.
"Previously it was on a Virgin Atlantic code only, but in phase two, it’ll be on Delta code too. And on 4 July, we have our debut Runway Roadshow – a product showcase for frontline agents, which will give them a really strong understanding of everything we have on offer."
Branson and Weiss never rest on their laurels, though; besides restoring Manchester-Las Vegas, they confirm a new Heathrow-Toronto route, launching next year. But why bring back Vegas now – and why Manchester?
"I think Manchester has become a major player in the UK,’ Branson explains. "During Covid a lot of people moved back there from London. It’s become a wealthier city, and more people have got the wherewithal to be able to fly to places like Vegas."
The message from Virgin is clear; for agents, the opportunities are manifold. Here’s to another 40 years.
Virgin Atlantic will operate its Manchester-Las Vegas route three-times-a-week over the summer on Sundays, Wednesdays and Fridays using an Airbus A350-1000 aircraft.
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