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30 - Oct - 2014

Virgin Boss throws his weight behind Heathrow Expansion.

Virgin Boss throws his weight behind Heathrow Expansion.

 

The expansion of the aviation industry has taken a new turn after Richard Branson the boss of the Virgin airlines threw his weight behind the expansion at Heathrow. Branson said that any kind of airline expansion will have to include additional or extension of runways at Heathrow airport. Branson said Heathrow is the most preferred airport by business travellers. As such, an airline setting up elsewhere including at Gatwick is a disadvantage. Building an additional runway at Gatwick alone does not solve the problem in the aviation industry. Business travellers are more inclined to use Heathrow due to its proximity to London. Moving to Gatwick means an automatic reduction in market share.

Virgin airlines which uses both Heathrow and Gatwick has partly blamed the closure of their routes of Tokyo, Mumbai and Cape Town, for more profitable transatlantic route. The situation is such that if an airline wants to add an additional route it has to close an existing one. This constrains growth and will only change after there is expansion at Heathrow. Branson insists politicians must make the right choices, despite them being unpopular with the electorate. Heathrow is the most Viable expansion option for long term growth. They know this, he said, but they don’t want to make the decision because of political reasons.

Virgin is replacing 60% of its planes with Boeing 787-9s which are more fuel efficient and quieter than its current fleet. The planes will have revamped seating and entertainment. The Virgin Atlantic CEO Craig Kriegler says it was a symbolic leap into the future of the airline. For them the wonderful experience is what keeps customers coming back not its expansive network. However the airlines route to its American partners Delta airlines Hub, will give passengers to more than 160destinations in the US.