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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.

  • JDB says:

    Obviously Virgin wants to be and feels the need to be ‘different’ (a bit like the old Avis ‘we try harder’) but it looks really amateur and having your majority shareholder openly disagreeing with the CEO is catastrophic. The disagreements between Stelios and EasyJet seriously compromised growth.

  • David says:

    Who is the guy on the right in the photos?

  • Richie says:

    VS had VLA such as A346s and B744s and may have enjoyed economies of scale, did they consider getting any B773s?

    • Nick says:

      They got A35Ks instead but are similar.

      • Richie says:

        B773s are longer than A350-1000s and 3-4-3 across in economy. I wouldn’t say they are similar.

        • Jonathan says:

          773 are incredibly large aircraft for a single deck, twin not quad engined aircraft

  • dougzz99 says:

    I love an article that involves mention of Manchester. It brings out all the airline experts mistaking their personal desires for commercial understanding of an airline.

    “there are about 20 million people within two hours of the airport.” was this a reference to the queues in summer?

    • Harry T says:

      MAN Is a dump.

    • Andrew. says:

      It’s a vast area.

      On a good day, it’s 2 hours to drive to Manchester Airport from Carlisle in the North, and from Banbury in the South.

      • RussellH says:

        Having moved from West Cumbria (about 1hr SW of Carlisle) to just a few miles from Banbury, the key bit is “on a good day”.
        Driving to MAN from the north was normally fine, though I preferred the train when it worked timewise.
        Driving towards Manchester from the south, however, is usually a nightmare.

      • TGLoyalty says:

        There’s no way you’re going to Manchester ilo Heathrow from Coventry/Warwickshire unless it’s significantly cheaper … since the actual costs to the airline are negligible then it would be pointless counting those people further south than say central Birmingham

        But since Liverpool/Manchester/Cheshire etc is about 5m people itself it’s got plenty of people and as wealth is transferring up north with more companies moving out of London for cheaper fixed cost bases things will evolve.

    • NorthernLass says:

      I’m not sure you can write off previous routes which operated successfully for years as people’s “personal desires”!

      MAN is definitely a dump, though, and I do wonder if this is partly what puts airline bosses off route expansion.

      • dougzz99 says:

        Personal Desires. People that want additional MAN routes bang on about it, I get that, but until someone says here’s the BA data supporting it, but BA are ignoring this data, it remains just a personal wish. How do we know, we don’t have access to the data, yet BA feel it’s not worth their effort at this point. A significant factor post Covid and the dumping of the 747 fleet is available airframes, not to mention crewing them. It’s not just can we run MAN-XXX profitably, it’s can we run it more profitably than adding LHR-XXX given our limited resources.
        What they could do in 2018 has no bearing in 2024. I’m sure that as soon as BA think they can run services from MAN more profitably than services from LHR you’ll see them appear.

        • Throwawayname says:

          The strategic importance which IAG attach to MAN, BHX and other English airports outside of London is tricky to assess when thinking about BA as some pax may prefer to drive, or even take the train, to LHR, plus split hubs and slot restrictions aren’t too helpful either.

          On the other hand, IB have none of these issues, are one of only 4-5 airlines which can offer easy one-stop journeys to a huge array of destinations across the Americas. They have axed the BHX route, only serve MAN with their cheapo ‘Express’ arm (selling business class tickets with 1pc/23kg allowance) and not even on a daily basis, and I am pretty certain they don’t go to anywhere else. Not really much of a loss to the regions though, because AFKL and LHG have been offering reliable service for decades.

      • JDB says:

        A route that may or may not have been successful in the past is no guide to what might be commercially viable today. European airlines have, of necessity, become more focussed on returns.

        BA used to operate two daily 747s to Australia, now it’s one daily Dreamliner. There was a daily 747 to Cairo, now it’s an A320 etc. etc. The world has changed!

        • The Savage Squirrel says:

          Eh? The history of a previous route and how it fared is definitely SOME guide (in fact the best possible guide!) to how things would play out and commercial viability of any similar new route, even if modifying factors need to be taken into account.

          • Throwawayname says:

            The best possible guide isn’t the performance of a past route, but the amount of tickets purchased for the city pair in question. E.g. if you wanted to start flying MAN-DSS, you don’t want to start digging around to see if anyone had deployed a Caravelle back in the day on a route to Brazil with 5 intermediate stops- instead need to find the current amount of traffic between the two cities flying via CDG, BRU, MAD, LIS etc.

          • Rob says:

            I sat through a route planning session with SAS once. This is true (and all that data is freely available) but apparently there is a large ‘build it and they will come’ segment,ie people who won’t bother unless they can fly direct.

  • Dev says:

    Surely there is demand from Gatters to places like Zanzibar, Mombasa, Bali, Phuket, etc.

    They could replicate their success with the Caribbean holiday network to places in the south and east?

    • blenz101 says:

      This is pretty much what I meant for my previous comment on MAN as well.

      Zanzibar, Martius, South Africa, Bali, Dubai for RAK, Vietnam, Sri Lanka, Dominican, Phuket, Maldives, Goa…

      All would seem to offer far better value than the USA for a UK based leisure traveller.

    • Chris W says:

      Bali runway top short to do a nonstop to Europe (that’s why there are none).

      Phuket very low yield, mostly s*x tourists.

      Zanzibar may work.

  • ADS says:

    with Virgin fleet expansion plans being distinctly modest – a base at LGW seems highly unlikely

    it sounds like VS will use the odd new aircraft to launch a new route from MAN … until they can get their hands on a decent slot at LHR … and will then shift the new plane to LHR

    sounds like the most profitable use of new assets

  • ian_h says:

    Those decrying MAN as a dump *may* not have tried it recently:

    T2 (Home to VS) – https://mediacentre.manchesterairport.co.uk/manchester-airports-new-super-terminal-named-one-of-the-worlds-most-beautiful/

    Chris Woodroofe’s appointment as MD and coming from Gatwick has made a visible difference to the customer experience. When issues occur (as they inevitably will in any airport), the cross skilled highly visible response team’s presence makes a huge difference and they appear to be empowered to decide service recovery measures on the spot.

    So, and I am not an apologist for MAN which has suffered from chronic underfunding under previous leadership, but blanket “its a dump” comments are hardly reflective of the experience for many nor the fact that huge efforts have been made around customer service as well as building new infrastructure.

    When T1 closes next year T3 will be next to get the makeover and the current thinking seems to be that pretty much all of what we now know to be T3 will be airside with check in and security relocated to a section of the closed T1 building to give a better T3 experience.

    • Mike says:

      I can echo that – the new T2 experience is comparable with the best of Heathrow – every time I have flown through there security has been less than 5 mins and the departure lounge is spacious and bright.

      T3 is challenging space and architecture wise but again security is now typically less than 10 minutes in my experience.

      • David says:

        Agree. Too many (non)experts jumping on a bandwagon to try and fit in with their London internet friends, it seems.

        • Johyu5 says:

          Nope. MAN is truly a dump. Most places in this country, with one or two exceptions, have no redeeming qualities.

          On a side note, “London internet friends” 🤣 you sound 13 years old.

      • Nick Taylor says:

        Agree – T2 will be a good experience when completed next year and will stand comparison with most airports. Blanket statements of “it’s a dump” don’t reflect the current experience for most people. T1/T3 are clearly both dated but one will be closed with the latter then to be upgraded

  • Tom R says:

    It would be nice if Virgin did just one route to North America from BHX, such as NYC. The airport was served from the early 90s until 2019 with at least one, sometimes two connections to NYC (BA, CO/UA, AA) – so it’s not like it doesn’t work. I took those flights a few times and they were always full, but UA/AA were crap and usually expensive. Virgin have a decent reputation and I’m sure if VS did one 787 at a competitive price I’m sure it would work. Living in the Midlands it sucks getting to either MAN or LHR especially by pubic transport and the traffic can be horrendous. I’m sure there’s plenty in the Midlands who would rather not make the trek. VS also have strong onward connection at JFK with Delta which they did not have so much say a decade ago.

    • GM says:

      It feels almost like I dreamt it that I flew Untied to NYC a couple of times from BHX! The airport really has gone so downhill. The aircraft were old and always seemed to go tech, but if was still much easier than driving to MAN/LHR or having to connect elsewhere. That said, I’m trying to avoid the place at the moment because it looks chaotic and miserable, and a CEO who removes all escalators in favour of big lifts and claims the escalators were too dangerous is probably not going to be the best at convincing any airline to offer a transatlantic route again

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