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Old 21st Aug 2012, 21:25
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EI-BUD
 
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Virgin on UK domestic

Sorry to be negative about new initiatives or airlines spreading their wings into new markets; however, this in my view is Virgin moving its focus away from what it is about, reminds me too eerily of bmi. As far as I can see no strategy. Long haul slots are at a premium and the can't afford to make their long haul business any smaller than it is now to enable a few daily rotations on LHR MAN or any other domestic route for that matter.

Virgin America is a super airline, they seem to differentiate from the competition with something that customers warm too, but the US is a continent in effect and much more scope for domestic flying given the distances e.g. JFK SFX or LAX.

I am not convinced that this is a good move, Virgin are in a state of flux, where it is restricted in a limited market. In my view they would be better off diversifying into markets underserved from LHR, destination where BA dont go but would like to, yes there are often restrictions but going into a short haul operation where the return will be limited doesnt strike me as a smart strategy, not to mention the cost and operational challenges (small fleet of a different aircraft, small crew for the type, cost of marketing a small domestic operation?).

EI-BUD

Last edited by EI-BUD; 21st Aug 2012 at 21:28.
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