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Virgin puts plans for premium-only airline on hold
Virgin Atlantic has put its plans for an all-business class airline on hold due to uncertainty over the future of Open Skies.
The airline says the Open Skies agreement could be reversed in 2010 so the venture would be too risky.
It announced plans in June to launch a business-only carrier between key European cities and New York.
But a spokeswoman said this week: “With no progress being made on the crucial next stage of the Open Skies talks, it would be too risky to start this new venture with the likelihood
that the first stage of Open Skies could be reversed in 2010.
“Our plans will remain on ice until there is clearer progress. Virgin Atlantic would like to see European carriers being allowed to fly onwards within the US as soon as possible, as US carriers will be allowed to fly onwards within Europe from March 2008.”
The airline industry fears that this November’s US presidential elections and changes in the European Commission due next year will delay the second phase of the Open Skies talks.
But last week British Airways chief executive Willlie Walsh said the airline had not ruled out operating a business class-only airline.
However, he stressed that it would not be from London Heathrow (See previous Q&A).
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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