BUSINESS MANAGEMENT

Logistics and Operations Management

Logistics and Operations Management

Introduction

The airline was established way back in 1984. With the trading name of Virgin Atlantic Airways Limited, Virgin Atlantic is one of the largest airlines that is operating from within the United Kingdom. The airline is mostly owned by Sir Richard Benson Group of Virgin Group. Almost 51% of the shares are being owned by the Virgin Group, and on the other hand, the Delta airline owns almost 49% of the share. The head office is located at the Crawley West Sussex. It is near the Gatwick Airport. The airline was initially planned by Randolph Fields and Allan Hellary (Alamdari & Fagan, 2005, p.392). The original idea was that it will fly between London and will go all the way to Falkland Islands. The maiden flight of the airline was completed on 22nd of June in 1984.If one looks at the operations of Virgin Airlines, it can be seen that it is a mixture of fleet of Airbus and there are wide body jets as well that are the part of the whole fleet. They are operating between the UK and North America.

As far as their licensing agreements are concerned, they hold a Type A operating license. This licensing agreement allows them to carry passenger, cargo and mail aircrafts. These aircrafts have more than 20 seats for their passengers. They also operate in Caribbean, North Africa and some other regions as well such as Middle East, Asia and Australia. The airlines are mean to operate in between the operated domestic flights. They are operating in the vicinity of United Kingdom since 31st of March 2013. As per the statistics of 2012, there are about 5.4 million passengers that have used the service of Virgin Airlines. Such volume had made it the largest airline in UK. Like most of the airline that are operating at the worldwide level, Virgin Atlantic is also facing losses and as per their financial statements of 2013, the net operating loss of Virgin Airlines was about £128.4 million.

Management of the Costs

Before understanding the way technology is being implemented at the Virgin Airways it is very important that one must be able to understand the how they manage their costs. The worldwide aircraft mini crisis at the moment, there are many things that are needs to be looked at when one talks about this aspect of the flight and fleet operations. To make sure that they can keep their costs in check, there are many aspects that are taken into the consideration by the Virgin Airline. They have developed further efficient ways through which they can reduce the carbon emission (Alamdari & Fagan, 2005, p.392). This is one that is needed to be appreciated that despite the declining profits (Dess & Lumpkin, 2005, p.156)0, they are the people who are committed to the cause. The Virgin Atlantic is committed to the reduction of the carbon emission as they are introducing innovative designs as well as changes in their aircraft ...