Virgin Pay Freeze Announced
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Joined: Jan 2008
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From: Europe
Virgin Pay Freeze Announced
Not a surprise considering the recent financial results. Obviously not welcome by the pilot group. 
What is interesting (for those of us not associated with VS) is the last sentence related to fleet retirements. I was aware that the A340s were on the way out (it only mentions the 600s but I also presume the 300s), but the inclusion of the 747-400s was interesting considering the recent investment in the fleet. Some were speculating this meant they could stay for the long-term... Still, they could all be retired at the end of that 5 year range when all the 787-900s will be delivered (fingers crossed!). No doubt cutting total engine numbers in half will result in big maintenance savings. Sounds like the A380 is out of the question. Perhaps the A350 1000 would work on the higher-capacity routes.
Article below:
Virgin Atlantic has imposed a pay freeze for the financial year that began on 1 March as the carrier battles rising fuel costs and a recession-dogged global economy.
The move comes just weeks after new chief executive Craig Kreeger took charge of the Gatwick-based airline with a mission to reverse its fortunes.
In the year to 29 February 2012, the carrier lost £80.2 million ($119 million) and UK media reports over the weekend suggested losses had mounted over the following 12 months.
While declining to comment on its financial performance, Virgin says it has committed to a "plan of measured changes" over both the short- and long-term to address the issues it faces.
"The airline has also made the decision to suspend salary increases for this financial year," it says.
Virgin says the UK airline industry "has faced continued challenges" over the past year, made worse by the UK's Air Passenger Duty tax and the fees levied by the country's airports which it describes as "some of the most expensive airport charges in the world".
It points to its transatlantic joint venture with Delta Air Lines - which in December acquired a 49% stake in Virgin - and its Little Red domestic operation, which will begin flights on 31 March, as key drivers for revenue growth.
Additionally a planned transition to twin-engined aircraft types "will result in considerable financial savings" it says, as it retires its Airbus A340-600s and Boeing 747-400s in the 2015-2010 timeframe.
Virgin freezes pay as it battles economic challenges
What is interesting (for those of us not associated with VS) is the last sentence related to fleet retirements. I was aware that the A340s were on the way out (it only mentions the 600s but I also presume the 300s), but the inclusion of the 747-400s was interesting considering the recent investment in the fleet. Some were speculating this meant they could stay for the long-term... Still, they could all be retired at the end of that 5 year range when all the 787-900s will be delivered (fingers crossed!). No doubt cutting total engine numbers in half will result in big maintenance savings. Sounds like the A380 is out of the question. Perhaps the A350 1000 would work on the higher-capacity routes.
Article below:
Virgin Atlantic has imposed a pay freeze for the financial year that began on 1 March as the carrier battles rising fuel costs and a recession-dogged global economy.
The move comes just weeks after new chief executive Craig Kreeger took charge of the Gatwick-based airline with a mission to reverse its fortunes.
In the year to 29 February 2012, the carrier lost £80.2 million ($119 million) and UK media reports over the weekend suggested losses had mounted over the following 12 months.
While declining to comment on its financial performance, Virgin says it has committed to a "plan of measured changes" over both the short- and long-term to address the issues it faces.
"The airline has also made the decision to suspend salary increases for this financial year," it says.
Virgin says the UK airline industry "has faced continued challenges" over the past year, made worse by the UK's Air Passenger Duty tax and the fees levied by the country's airports which it describes as "some of the most expensive airport charges in the world".
It points to its transatlantic joint venture with Delta Air Lines - which in December acquired a 49% stake in Virgin - and its Little Red domestic operation, which will begin flights on 31 March, as key drivers for revenue growth.
Additionally a planned transition to twin-engined aircraft types "will result in considerable financial savings" it says, as it retires its Airbus A340-600s and Boeing 747-400s in the 2015-2010 timeframe.
Virgin freezes pay as it battles economic challenges
Joined: Feb 2009
Posts: 3
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From: london
No real suprise Virgin has been losing money for years and has only showed profits with the help of creative accounting.
Now that SR has left maybe someone can turn the once great company around afetr 10 years on bad management.
Now that SR has left maybe someone can turn the once great company around afetr 10 years on bad management.
Joined: May 2003
Posts: 193
Likes: 0
From: Europe
No real suprise Virgin has been losing money for years and has only showed profits with the help of creative accounting.
Virgin have been losing money for years with the help of creative accounting and only showed profits when it had to.
There are many Director/BVI owned suppliers doing very nicely out of the operation.
