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Will Virgin Atlantic return to Gatwick? And what about Manchester growth?

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This is the final article this week based on my interview with Virgin Atlantic CEO Shai Weiss at the 40th birthday event for the airline in Las Vegas.

Late last week, The Times (paywall) quoted Sir Richard Branson as saying that the airline was “planning” to return to Gatwick airport.

Until it ended operations in 2020, Gatwick was arguably Virgin Atlantic’s “home” airport. It was from London Gatwick that Branson launched his inaugural flight to New York on the 22nd June 1984 – because the Government refused to give him Heathrow slots – and the Virgin Atlantic offices remain in Crawley.

Will Virgin Atlantic return to Gatwick Airport?

When covid hit, the airline made the decision to consolidate operations at Heathrow. Flights from Heathrow were always more profitable thanks to a higher share of corporate travel whilst Gatwick was seen as a lower margin leisure operation.

Under Shai’s leadership, and with the help of CCO Juha Järvinen, increasing network connectivity (which includes codeshares on other carriers and SkyTeam membership) finally appears to be paying off.

Splitting operations across two London airports made little sense in this context: consolidating flights at Heathrow was arguably inevitable to increase the number of connections Virgin Atlantic can offer.

Just this week Virgin announced it was launching flights to Toronto based on the strength of the India – London – Canada passenger flows.

Will Virgin Atlantic return to Gatwick Airport?

But Gatwick clearly still means a lot to Branson, who reiterated during the 40th birthday celebrations that he would like to see Virgin Atlantic back at the airport. When I spoke to Shai, he told me that there are currently no plans to return to Gatwick but that:

“We’re maxed out at Heathrow, we have a beautiful base in Manchester …. in considering the options for Virgin Atlantic for future growth, profitably, never say never.”

Consolidating at Heathrow isn’t as easy as it might sound, and puts some serious brakes on potential growth for Virgin Atlantic. With the airport still to announce whether it will continue to pursue a third runway under new CEO Thomas Woldbye, any airport expansion is at least a decade away.

The only way for Virgin Atlantic to grow would be to acquire slots on an adhoc basis (such as those it gained from Russia’s Aeroflot) or to increase flights from other airports. The latter would likely be less profitable and offers none of the connectivity options that Heathrow does. Neither option is ideal.

The key reason why Virgin Atlantic will launch flights to Seoul if the Korean / Asiana merger goes through is because Korean would provide the necessary slots at Heathrow (and in Seoul) for free as part of its concessions package.

Will Virgin Atlantic return to Gatwick Airport?

What about Manchester Airport?

Speaking of the regions, let’s take a look at Virgin Atlantic’s operations at Manchester Airport. On Manchester, Shai said “Our home in the North remains a valuable base …. there are about 20 million people within two hours of the airport.”

Prior to covid, Virgin Atlantic had a strategy to substantially increase flights from Manchester by capitalising on the demise of Thomas Cook, which operated to 12 long haul destinations.

Those plans included building a Clubhouse in Manchester Airport to ‘level up’ the departure experience with that at Heathrow.

Whether through covid or through changing priorities (likely both), neither materialised. There are still only five destinations you can fly to directly from Manchester – Atlanta, Barbados, Orlando, Las Vegas and New York – and the long-delayed Clubhouse project was officially cancelled this year.

“For the level of activity there, we just couldn’t justify level of investment for a Clubhouse. It was a commercial decision.”

For now, large-scale expansion at Manchester appears off the cards. “You can think of adding another one or two planes to both Heathrow and Manchester”…. but with just five planes out of a fleet of 45 based at at Manchester, it will remain a much smaller operation.

For now, at least, Virgin’s pre-covid growth plans at Manchester have been put on ice. Shai told me that it’s doing very well – despite competition from the new Aer Lingus flights to the US – and they’re happy with their position in the market.

“If more opportunities present themselves and demand is greater, we will fly even more from Manchester.”


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Comments (87)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • ChrisBCN says:

    So it’s ‘no’ then, at least for now.

    • The Original David says:

      First rule of media headlines: if the headline is a question, the answer is probably “No”…

  • Erico1875 says:

    The only thing I took from these 3 interviews is Beardy gibbers a lot of nonsense , then Shai completely contradicts it.

    • NigelthePensioner says:

      Yes I noticed that too!

    • Alastair says:

      Agreed! It must be a bit like having Boris J as Chairman.

    • VSCXFAN says:

      …which is probably exactly what they agreed to do…

      • Lady London says:

        +1
        Branson seems to have managed the transition to no longer being the airline incarnate, quite well

  • Gordon says:

    I see all three looked fairly smart, until I looked down and noticed that they are all wearing trainers!
    And to top it off, Richard had the scruffiest worn looking pair of the lot!

    • Bervios says:

      Coming soon to KLM cabin crew as well…

    • Rob says:

      For better or worse, the corporate look these days for 50-somethings is a suit with trainers. Most of the more on-trend London private clubs now allow them, even the one that threw my wife out for wearing open toed sandals.

      Brand is key though. The £800 Zegna laceless ones are the top choice amongst this group this year.

      • Gordon says:

        I personally would not pay that price for a pair of sneakers, but if needs must!
        I prefer Ralph Lauren sneakers, good quality IMHO (Only Purchased in a Premium outlet in the US) they never fail me. Around $80 to $100 a pair!

        The Hyatt Ziva/Zilara properties I frequent in the Caribbean only allow closed shows in the restaurants and clubs.

        • Gordon says:

          *Shoes! Well they have shows also….

        • TGLoyalty says:

          Closed footwear or do you really mean shoes because there’s no chance I’m doing that every day on holiday.

          Zegna laceless are great casual trainer best to buy in sales though … agree on Polo tbf can be quality and good for a casual look. Unfortunately wore my fav pair into the ground and they just haven’t done them again since.

          • Gordon says:

            No open toe shoes in the À La Carte restaurants & Club. Everywhere else is fine, including the buffet. The French restaurant (La Bastille) at their property in the hotel zone Cancun, is one of the best I have been to. Also the one at their riviera property (Rue De Rivoli) is just as good.

            Yes, I had that problem, as they do like to change the design from one year to the next, so now when I’m in the US, I buy a few pairs of a particular type that I desire.

      • Lady London says:

        Personally I wish this trend would keep on evolving as guys just look so silly in the existing style of suits, without ties.

      • krysk_k says:

        One club I’m a member of won’t allow ties (or more to the point suits). The other insists.

    • Hbommie says:

      The old fella in the comfies, the middle fella thinks he’s trendy in Nike and the others conforming but really would rather be in his Todd’s.

  • NigelthePensioner says:

    To increase volume of sales from a particular airport, the product you offer at that airport has to be desirable to the flying public. If you bury your head in the sand and say not enough people fly from here to justify a Clubhouse, then you will not get more people flying from there (MCR), albeit that the destination choice is very poor. You have to create demand by choice of routes and desirability. MCR and LGW both fail massively on desirability and that is as much down to architectural layout as well as the airlines’ attitude to leisure travel. It shouldn’t be news but maybe airlines should wake up to the fact that leisure travel is now a major component of their income, not business travel and passengers should not just be taken for granted and piled into 20th century A330’s or 777’s and be expected to think the experience is “amazing” especially when you are flying from the likes of MCR or LGW which starts the whole journey experience off on the wrong foot!
    Oh……and what about the admission that the removal of the bar and the creation of the “waste of space” was a wrong move? Is anyone surprised except the people who run the airline? Dear oh dear……….

    • TGLoyalty says:

      Completely agree absolutely the wrong attitude. Current traffic is t worth the investment … well without investment it’s not improving.

      However, they may have had to make choices for where the money goes and MAN probably gave them a put up or shut up ultimatum so they had to say no.

    • Lady London says:

      Shurely the Premier Lounge (I’ve forgotten its new forgettable name) might appeal to a lot of the target Virgin Upper Class flyers?

      • Rob says:

        It would be interesting, I admit, if Virgin subsidised visits to eather for Upper Class passengers – perhaps offered it for £75 instead of £150.

      • Blair Waldorf Salad says:

        The players themselves fly privately. Every weekend with hangers-on.

  • Jake says:

    @ Rhys,

    Was there any mention of catering. This blog has confirmed that Shai is currently unimpressed so would have expected a strategy?

    • Rhys says:

      No, ran out of time. It’s getting better in my experience.

      • HampshireHog says:

        Oh are they now serving Greggs onboard? It’d be a definite improvement

  • NorthernLass says:

    There is definitely demand at MAN, for additional routes, premium cabins and competitive pricing, as evidenced by the BA LHR flights several times a day rammed full of pax connecting to the US and other destinations.
    In the “glory days” of travel from the North West, you could fly direct to MLE, NAS, MIA, HAV, PUJ, PHL and others, it’s woeful that nowadays there are only 5 US routes (and one of those is seasonal!) and just 2 Caribbean routes (3 if you include CUN).

    • NorthernLass says:

      Just checked on this because it seems unbelievably poor. I will add IAH (Singapore), and Caribbean routes seem to be BGI, Tui possibly doing PUJ (but not SDQ which used to serve a lot of cruise traffic), and MBJ, plus CUN, so 4 Caribbean destinations!

      • David says:

        Could you sometimes just talk human and just give the name of places, not their airport code?

    • JDB says:

      There may be a certain level of demand, but that’s different from there being a good business case for BA establishing a long haul base at MAN with dedicated aircraft/crew. There would also be the issue of some minor cannibalisation. BA is hardly alone in not setting up a second base – Air France and Iberia operate in bigger countries but still don’t. Alitalia and Swissair were bankrupted attempting to run two bases. It’s a big issue for SAS coming to the end of its bankruptcy process. IAG/BA are very commercial companies; they will be fully aware that MAN exists. Their response is to use EI to operate some flights as that airline has a cost base that is much lower than BA could ever achieve.

    • blenz101 says:

      Everybody I talk to in the north who has travelled to the US post covid has pretty much vowed they won’t be going back anytime soon. These are primarily leisure travellers.

      The impact of inflation and the now seemingly new levels of USD/GBP exchange rate makes the US feel extremely expensive. This is more pronounced for those in north travelling from MAN which obviously has a lower cost of living compared the London and the SE.

      Amazed that from the north they have not tried to pivot east running routes to destinations which offer good value via Virgin Holidays.

      • TGLoyalty says:

        Agree on US the FX, the tip culture and the people mean I won’t be going back for a long time on my own £

        Best to go south or East where your money still goes further

      • Gordon says:

        Agree, re the costs and the awful tipping culture,
        My last trip until it is back to normality, was taking the grandkids to Orlando 7 months ago, my next few trips are East, apart from Colombia which is SW but that is acceptable because of the cost of living out there.

        • John says:

          What makes you think it will ever go back to what you define as ‘normality’?

          • CJD says:

            I don’t think it will.

            A mixture of inflation and the exchange rate moving unfavourably for UK based travellers means the US has lost one of its key selling points – that it was fairly cheap for UK tourists.

          • Rob says:

            Surely if you’re a HfP reader and using points for a hotel the impact is virtually nil? Strip out accommodation and how much are you spending outside that? Unless you were specifically going to hit the shops it’s not a lot of difference. Yes, it’s slightly shocking to pay £5 for a takeaway coffee but its hardly a deal breaker on travelling.

          • Gordon says:

            I was using my allowance of optimism, we will see, if it remains an uneconomical option, then I will not travel there….

          • TGLoyalty says:

            Who’s earning points for hotels anymore in the UK? The only card worth sticking with is Bonvoy. Hilton legacy if you didn’t swap but all the IHG ones have gone. Hyatt isn’t possible.

            Add $50 a day “resort” fees at every hotel worth visiting even for points stays its not value. And yes £5 for a coffee, £30 for a burger for lunch, £150 for dinner with a couple drinks does make a huge difference when it’s a 1/3 of that in Europe and the hotels can be booked for the exact same points.

          • CJD says:

            @Rob meals would be significant spend if on holiday. An ‘exec’ lounge with a crap buffet spread is not my idea of a decent meal.

      • NorthernLass says:

        There were non-US routes in the past – I flew to MLE and NAS direct from MAN years ago, for example.

        @JDB, I’m not even suggesting BA starts direct long-haul flights, this is something Virgin could capitalise on. Many people choose to travel via LHR because the current alternatives are too expensive, or don’t exist.

      • VSCXFAN says:

        I doubt MAN-MLE would be commercially viable, and MAN-DXB is already “owned” by EK. VS did however seize the (brief) opportunity to operate MAN-ISB and MAN-LHE when PIA had to drop out.

  • CJD says:

    I get why London is where the focus is, but the state of operations for Virgin and (particularly) BA out of Manchester is a complete joke.

  • Paul says:

    Why do middle aged and old men wear young men’s clothes. Branson just about get away with it but the other two look ridiculous!

    • TGLoyalty says:

      Both Branson and Shia look poor, Branson looks like he’s tried extra hard to look chill and poor and just looks silly.

      There’s nothing wrong with what the guy on the right is wearing. Looks perfectly dressed for the occasion.

      • Paul says:

        Actually, for me he was the worst dressed of all. Those trousers are ridiculous on a man with so little hair! I am sorry I know this is a bias, but I cannot get past how they look. Especially as this is a firm and a group of men that insist on many in their employ wear a uniform.

        • TGLoyalty says:

          What does the amount of hair have to do with his trousers 😂

          He’s got more hair than the CEO. Their customer facing staff must wear a uniform so they represent the airline in a certain way and are easily recognised … no c suite or HQ staff ever have strict dress codes other than smart.

          • TGLoyalty says:

            *certain meetings or when you’re at a certain event might but it’s well known Branson is a casual type of leader

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