Virgin Atlantic continues its efforts to emerge as a sustainable and profitable airline
Virgin Atlantic is committed to India in the long term and hopes that market conditions will allow them to expand service further in the future. Alex McEwan, Country Manager- South Asia, Virgin Atlantic, discusses with TTJ, how the airline is operating currently and transforming to increase customer satisfaction while also adapting to the ever changing COVID situation.
With the ongoing fight for survival, is business picking up? When are you expecting passenger capacity to return to pre-coronavirus pandemic levels onboard your airlines?
The widespread deployment of the vaccine in the UK and across the world is incredibly encouraging for our industry as a whole. It is a momentous global task and will take some time, but we are confident that as this ramps-up, consumer confidence in travel will grow and also allow travel restrictions to be safely relaxed. We are encouraged by the strong rebound in domestic travel within India, which indicates a growing willingness to travel and are seeing pent-up demand for our flights too. Our ambition is to return to pre-pandemic levels of capacity in India this year and we will increase our level of flying in line with demand recovery, alongside a laser focus on ensuring flights generate a cash contribution.
What is your strategy to regain your financial strength in the years ahead? Where will you prioritise investments?
As well as taking measures to protect our short-term cash position and financial stability, we have also made changes that will make us more competitive in the years ahead. We have revamped our loyalty programme ‘Flying Club’ to increase its relevance. Point redemptions will now contribute towards tier status – an industry first. In addition, we are offering passengers ‘evergreen’ points – their points will never expire. We have invested in one of the newest, greenest fleets in the sky. This work was underway prior to the pandemic, underpinned by our focus on sustainability, but has been strengthened by us accelerating our retirement of less fuel-efficient fourengine aircraft like the 747. Our average number of seats on each aircraft will also be lower due to this change, making us resilient to changing market dynamics. This year we have achieved record-breaking cargo revenues, which has supported the cash generation of the airline as a whole and allowed us to continue service on many routes despite low passenger demand. We have challenged ourselves to more closely integrate our cargo business into the airline in the years to come, for example in the route selection process, to ensure that we continue to deliver strong performance. ‘Best in Partnering’ is one of our key strategic pillars and influences every decision we take. This fundamental part of our identity remains as important in the years ahead as it has been for our past. A great example of this is our transatlantic joint venture with Delta. For Indian passengers, this offers seamless connectivity between our flights to London and onward to the USA, with shared frequent flier benefits and a consistent onboard experience throughout the journey.
How can airlines build in greater resilience to survive future challenges? How can the government help?
One of the biggest challenges faced by airlines currently is rapidly changing travel restrictions, imposed at short notice by governments and often with complex conditions for passengers. Consulting with airlines and airports before announcing or implementing these travel restrictions will allow smoother implementation with less disruption for passengers. Many governments have recognised the value of pre-departure testing as a method to safely re-open travel corridors. An international standard for pre-departure testing requirements and a globally consistent portal demonstrating travel eligibility would be hugely helpful.
Presently, there have been a lot of changes in the aviation industry. According to you, what will be the changing landscapes in airline operations post COVID?
Given the huge strain the pandemic has placed on the industry, it is inevitable that a period of consolidation will follow. Many airlines will be more cautious with fleet expansion and become more streamlined in their strategy, prioritising the areas of their business where they possess a particular competitive advantage. At Virgin Atlantic, our biggest strength has always been our people, with our crew being an essential part of driving our award-winning service. This has been reinforced during the pandemic, with our customers providing us with overwhelmingly positive feedback about how welcome and safe they have been made to feel onboard.
Do you believe the bio-safety measures are temporary, or will they become a regular part of the travel experience?
The extent to which safety measures implemented during the pandemic will remain part of the travel experience depends on several factors. Government regulations will clearly be the biggest influence, but policy will also be influenced by passenger demands, and the measures that they deem appropriate to ensure comfort onboard, even if this goes beyond government guidance as restrictions get relaxed in the years ahead. We track customer satisfaction on every one of our flights to ensure that we are living up to our passenger’s expectations and delivering unforgettable service, and will be closely monitoring attitudes to safety measures in the months and years to come so that we can adapt our service accordingly.