Virgin to Launch All-Business-Class Transatlantic Airline

Virgin Group's new all-premium-class airline will not begin life flying the same aircraft types as does its sister carrier Virgin Atlantic Airways. One of the mainstays of Virgin Atlantic's present fleet is the Airbus A340-600, the longest passenger airliner in the world. Credit: Airbus S.A.S.

Virgin Atlantic Airways is planning to launch an all-business-class airline within 18 months to fly between major cities in Europe and the USA.

Richard Branson, the founder and iconic chairman of the Virgin Group, revealed the news to reporters in Nairobi while visiting the Kenya capital for the launch of Virgin's new London-Nairobi service.

The new airline will launch services in the next 12-18 months and will initially operate nonstop services from European cities that will include Frankfurt, Paris, Milan and Zurich to New York and other U.S. destinations.

Soon afterwards--within the next 18 months--Virgin's new all-premium-class carrier will also launch service from London and possibly other UK cities to the United States. However, Virgin is still considering whether or not the new airline will fly from Heathrow Airport, London's premier international gateway, as does its sister carrier Virgin Atlantic.

Eos Airlines, MAXjet and Silverjet already operate all-first-class or all-business-class service between London and New York, but the first two--which are both U.S.-based airlines--fly between New York JFK and London Stansted Airport, while UK-based Silverjet operates between London Luton Airport and Newark Liberty Airport.

If Virgin began offering all-premium-class service from Heathrow, it could gain an advantage over these competitors, all of which fly from airports further away from London.

However, Heathrow's notoriously congested passenger terminals could prove disadvantageous to Virgin's new business-class airline until the opening of the airport's new Terminal 5 and the replacement of Heathrow's existing Terminal 1 and Terminal 2 with a Heathrow East terminal.

Planning permission for the construction of this huge new terminal was approved on June 1 by the local council of the area in which Heathrow lies and the Mayor of London, Ken Livingstone. The first phase is scheduled to open in 2012 in time for the Olympic Games, which London is hosting.

Branson said the new carrier would not compete with Virgin Atlantic and would not operate an aircraft type that is already in its sister airline's fleet.

Reports from the UK say Virgin is in discussion with Airbus, Boeing, Bombardier and Embraer for a $700 million order for single-aisle aircraft, such as a version of the Boeing BBJ, the 737-700ER, or the A319 Airbus Corporate Jet. This sum could buy Virgin some 15 single-aisle jets. Virgin Atlantic Airways recently ordered 15 Boeing 787 twin-aisle jets and secured commitments on up to 28 more. It is possible some of these aircraft may go to the new business-class Virgin carrier.

Branson told reporters the signing of the new Open Skies air service agreement between the United States and the European Union on April 30 allowed Virgin to broaden its market and persuaded the company to introduce premium-class-only transatlantic service product from European destinations outside the UK.

Whether or not the new airline will retain the Virgin name is still under discussion, but Branson told reporters it would not cannibalize Virgin Atlantic's existing Upper Class premium-service offering. Virgin Atlantic Airways is known for its innovation in terms of service features and Branson said the new carrier's service would also be innovative.

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