Branson launches Canadian service in Vancouver
Airline will fl y non- stop to London Heathrow four times a week
British billionaire and entrepreneur Richard Branson touched down with characteristic flair Thursday in Vancouver, the latest global destination — and only Canadian city — to join his Virgin Atlantic Airlines empire.
“This is our 32nd destination. We’ve been practicing on the Africans, the people from the Far East, the people from America, and now we feel we have the product absolutely right for Canadians,” a smiling Branson told reporters and VIPS, including Premier Christy Clark, at a packed media event held at the Vancouver International Airport.
Branson was in town to mark the launch of Virgin’s non- stop service between Vancouver and London Heathrow Airport.
The inaugural flight of the airline’s sleek Airbus A340300 arrived shortly after noon to much fanfare, including an appearance by Branson on the steps of the aircraft alongside Amy Williams, England’s Olympic gold medallist in skeleton from Vancouver 2010.
The service will operate four times a week — on Tuesdays, Thursdays, Saturdays and Sundays — until Oct. 27. Branson said he hopes to extend the service year- round — “and then daily, then two a week, three a week.”
Claire Newell, a Vancouverbased travel expert and owner of Travel Best Bets, said the arrival of Virgin Atlantic will boost seat capacity on the Vancouver- London route by 10 per cent.
“So, along with the charters like Thomas Cook and Transat, and scheduled carriers like Air Canada and British Airways, there are a lot more seats in the marketplace,” she said.
But travellers shouldn’t expect to see a major drop in ticket prices.
“I am seeing quite similar rates to last year,” Newell said, noting return flights to London are averaging about $ 1,500, including tax, throughout the peak summer season.
Newell said Transat was the one exception: the airline is offering flights at about $ 375 less than the competition.
The launch of Virgin’s seasonal service marks the first time the airline has returned to Canada in more than a decade.
Branson earlier selected Toronto as the original destination for his brand, but quickly pulled out after the Sept. 11, 2001 terrorist attacks on New York and Washington. A resounding drop in global demand in the months that followed cost him an estimated $ 320 million.
“We were in survival mode after that,” he said.
Branson said he chose Vancouver in large part because of its booming economy, as well as the strong tourism and business links with the United Kingdom.
Julie Southern, Virgin’s chief commercial officer, said the airline is also hoping the route will build links within its network to international destinations.
Marc- David Seidel, chair of organizational behaviour at the University of B. C.’ s Sauder School of Business, said Branson was likely attracted to the West Coast by the lack of competition relative to the busy Toronto market.
Seidel said Virgin’s arrival could also signal an integration with Virgin America, Virgin Atlantic’s U. S. partner based in San Francisco.
“So there would be connecting service to the rest of their destinations through the San Francisco hub,” he said.
Branson’s interest in launching a domestic service in Canada, similar to what he’s done in the U. S. and Australia, is far less likely because of restrictions on foreign ownership and Canada’s relatively small travel market, Seidel said.
But he wouldn’t rule it out, particularly if Virgin’s London — and potential U. S. — connections go well.
“I could see them eventually looking to a domestic competitive market,” he said.
Virgin Atlantic is Vancouver’s fourth airline to offer direct flights to London. Air Transat also offers seasonal service of five departures per week.
Air Canada and British Airways fly throughout the year, offering seven and 12 weekly departures respectively.
Newell described Virgin as “an amazing airline,” with “topnotch” inflight features that include a walk- up bar, special lighting that mimics the natural passage of time, and in- seat entertainment throughout both business and economy classes.
“They have phenomenal return rates from customers,” she said.
Richard Job, Flight Centre’s national air manager, said London is always a top international destination for Canadian travellers, many of whom use it as a convenient jumping- off point to the rest of Europe.
Job said Virgin’s strong reputation as a comfortable airline will attract a strong following from the Vancouver market.
Larry Berg, president and CEO of the Vancouver airport Authority, said Virgin Atlantic will directly create 35 new jobs at the airport, and an estimated 170 indirect jobs in hotels, restaurants, shops and tourist attractions.
Up to 40,000 passengers are expected to take advantage of the service, which Virgin estimates will bring $ 21.5 million in tourism revenue to the province.
YVR is Canada’s second busiest airport, serving 17 million passengers on more than 258,000 flights in 2011.
The airport’s operations support 23,600 direct jobs, according to a 2011 economic report published by the Vancouver airport Authority.