1. VIRGIN ATLANTIC AIRLINES
Tim Dunlea
Tristan Richards
Bob Dunoskovic
Philip Winchester
Lindsay Charles

2. HISTORY

3. VIRGIN GROUP Parent Company London Broncos Virgin Express
Virgin Atlantic
Virgin Holidays
Virgin Trains
Virgin Balloon Flights
Virgin Mobile
V2 Music
V.Shop
Virgin Bride
London Broncos
Virgin Express
Virgin Wines
Virgin Cosmetics
Virgin Cola
Virgin Publishing
Virgin Megastores
Virgin Energy
Virgin Direct

4. CURRENT SITUATION Second Largest Long Haul Carrier in UK
Third Largest European Airliner operating in US
Fifth Busiest Trans-Continental Airliner in Behind:
Continental (1,947,000 Passengers)
Delta (1,827,000 Passengers)
British Airways (1,611,000 Passengers)
Lufthansa (877,000 Passengers)
Virgin (872,000 Passengers)

5. CURRENT SITUATION Average Growth Rate Through 2000 was 26.4%
September 11, 2001

6. ALLIANCES Singapore Airlines Continental Airlines Malaysia Airlines
BMI British Midland
Nationwide (South African)
Air India

7. FLIGHTS From UK to: Africa Asia North America Johannesburg, SA
New York (Newark, NJ)
Miami
Los Angeles
Boston
Orlando
San Francisco
Washington DC
Las Vegas
Chicago
Toronto
Africa
Johannesburg, SA
Cape Town, SA
Lagos, Nigeria
Port Harcourt, Nigeria
Asia
Tokyo, Japan
Hong Kong, China
Shanghia, China
Delhi, India

8. FLIGHTS
From UK to:
Caribbean
Barbados
St Lucia
Antigua
Tobago
Grenada

9. US DOMESTIC AIRLINE FLIGHTS (1998) (Business Ranking Annual 2001)
New York to Los Angeles * (3,625,000)
New York to Chicago * (3,069,000)
New York to Miami * (2,834,000)
New York to San Francisco * (2,683,000)
New York to Boston * (2,651,000)
Honalulu to Kahului, Maui (2,541,000)
New York to Orlando * (2,251,000)
New York to Atlanta (2,377,000)
New York to Washington * (2,372,000)
Dallas to Fort Worth-Houston (2,313,000)

10. MARKETING

11. PROBLEMS
The Richard Branson Factor

12. SWOT Strengths Richard Branson Privately Owned
Good Image / Good Marketing
Youngest Aircrafts in the Industry
Low overhead
Leased Aircrafts
Flights to Major World Cities
Alliances
Sr. Leadership Team

13. SWOT Weaknesses Richard Branson Cash Flow Direct Routes One Hub
Limited Destinations

14. SWOT Opportunities More Cities Bankruptcy of US Airline Companies
European Union

15. SWOT Threats World Economy New Airline Restrictions Fuel Cost
Terrorism
Over Flight Restrictions
New Airline Companies

16. POSSIBLE STRATEGIES OVERVIEW
Expand partnerships to broaden service
Invest in U.S. expansion, more cities
Increase service between cities
Increase advertising
Explore alternative marketing strategies
Reconsider use of Gatwick Airport

17. EXPAND ALLIANCES Currently, Virgin has five alliance airlines
Three partners offer service from London to only one other city
The fourth offers connections from London to five cities: Amsterdam, Brussels, Dublin, Milan, and Madrid
The fifth offers service only between South African cities

18. EXPAND ALLIANCES
To reduce risk and costs, Virgin could partner with other high-quality airlines to broaden the area covered
Frequent flier miles would transfer easily between alliance airlines
Virgin could provide service to smaller markets

19. U.S. EXPANSION
Virgin offers service from London to NINE cities in the United States
Cities such as Chicago, Detroit, Atlanta, and Philadelphia are not on the list
Possibility of capturing market share in cities not currently being served by Virgin

20. INTERCITY SERVICE
Currently, Virgin only offers flights to or from London
There is a great opportunity to offer flights between cities in which Virgin already offers service
The London market, while large, is very limited – intercity service could increase Virgin’s market
The U.S. needs an airline that will provide consistently high-quality service

21. INCREASE ADVERTISING Virgin spends only 2% of turnover on advertising
The industry standard is 5 – 7%
Virgin has marketed itself very successfully using only 2% of turnover; the possibility exists to increase advertising while still staying well below the industry standard

22. MARKETING STRATEGIES
Introduce a credit card that offers airline miles for every dollar charged
Use Richard Branson, the charismatic Chairman of Virgin, in some of its advertisements
Emphasize the quality of British service in American advertisements (case in point: the English butler)

23. GATWICK
Gatwick Airport is located 28 miles south of London, and cannot be reached using the city’s extensive Underground system
The airport has only one runway
When travelers think of London, they think of Heathrow – Gatwick is out of the way and not an option that springs to mind
Virgin may want to reconsider using Gatwick

24. OPTIMAL SOLUTION Broaden service by:
Partnering with other high-class, high-quality airlines to provide service to cities currently not being served
Offering service between U.S. cities currently served by Virgin
If these strategies are successful, gain entry to other airports in the U.S. to expand to more cities

25. OPTIMAL SOLUTION cont.
Increase advertising slightly to cover new markets in the United States
Strive for better recognition in the United States, as Virgin is not necessarily regarded as an option by travelers
Offer a Virgin Atlantic credit card in partnership with Visa or American Express, with a good rewards program for cardholders