Virgin Atlantic. A vibe funded by losses.
Virgin Atlantic had a bar, a massage therapist and a chauffeur. Now it's cutting all of it, raising prices and going after BA. Personality doesn't pay the bills.
THE GIST ON VIRGIN ATLANTIC: "Final Descent"
What is Virgin cutting?
Virgin Atlantic used to have a bar on the plane, a massage therapist on board and a chauffeur waiting when you landed. Now it's cutting all of it, putting prices up and going after BA's customers. Personality doesn't pay the bills.
Virgin launched in 1984 with one plane and a bar on the upper deck, and for 40 years the whole brand was built on one idea: we're not BA, we're the fun one. People adored it.
Why now?
The airline has barely made any money in a decade. Branson had to sell 49% of it to Delta just to keep the lights on, and now the bean counters have taken over.
The bar has had its last orders. Social spaces are being ripped out, economy is shrinking and premium suites are being added everywhere, because a suite has a yield you can measure and a bar doesn't.
Was fun ever a business model?
Nobody ever fell in love with an airline because of how many people it could fit on a flight. Being a fun airline was never really a business model. It was a vibe funded by losses, and when the money runs out, the vibe is the first thing to go.
Who loses?
Virgin's existence mattered beyond its passengers. For 40 years it forced BA to be better, on price, experience and ambition. That competition has just stopped.
When the counterculture gives up, the mainstream has no reason to improve. Everything gets more profitable and less interesting at the same time. Better for shareholders, worse for everybody else. The most interesting position in British aviation has just become available. Could this be BA's comeback story?
Would you pay more for the fun airline?
Your take. One tap, then see how everyone else voted.
Quick answers
What is Virgin Atlantic cutting?
The bar, social spaces, and extras such as the onboard massage and chauffeur, while adding premium suites.
Who owns part of Virgin Atlantic?
Delta owns 49%, after Branson sold it to keep the airline going.
Why does it matter for BA?
Virgin forced BA to improve for 40 years. Without that competition, the mainstream has less reason to try.
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