VIRGIN ATLANTIC AIRWAYS

Virgin Atlantic Airways



Virgin Atlantic Airways

Introduction

Virgin Atlantic Airways is a subsidiary of Virgin Group and is the second largest British international airline. Currently, Virgin Atlantic Airways is providing airline services for more than 30 international destinations. Virgin Atlantic Airways established in 1984 by Virgin Group that has a remarkable name in the music industry. Virgin Atlantic Airways adopted a sequential business development strategy to compete with the challenging environment of the airline industry. Virgin Atlantic Airways is a high quality, value for money airline. Virgin Atlantic Airways bases its strategy on cost leadership position to offer very low selling prices compare to traditional airlines.

Virgin Atlantic is a privately owned airline; Virgin Group has 51% ownership in total equity and Singapore Airlines hold 49% ownership in the business (Dickinson, 2002, pp. 4-9). Company upgrades its fleet with advanced jet planes from time to time. Currently, Virgin Atlantic Airways operates a fleet of thirty eight (38) aircrafts that include thirteen (13) Boeing 747-400 series jets, six (6) A340-300 series, and nineteen (19) A340-600s Airbus series jets (Kevin, 2007, 1757). Virgin Atlantic Airways is using Heathrow airports and the Manchester airport as its hub ports for flight operations management.

Virgin Atlantic Airways is a value for price airline that is serving three travel classes that include upper class, premium economy, and economy class on all international and domestic routes. Virgin Atlantic Airways has adopted a customer based strategy to differentiate its offering from competitors. It provides a series of services to provide value to airline travellers for their price. Premium economy class has packed fare economy cabin, whereas economy class include differential economy fares price system with systematic product offering and in-flight entertainment.

On-board customer services unit division caters baggage handling, check-in facilities, in-flight entertainment, and meal catering for fleets (Talavera, 2010, pp. 1-6). This unit works in collaboration with the SAD (special assistance department) to for providing special travel services related to health camps at departure and arrival airports, and mobility aids. Virgin Atlantic operates business units named as Virgin Atlantic Cargo and Virgin Holidays. Virgin Atlantic Cargo offers cargo transport under Virgin Atlantic Cargo division. It also offers Must Ride program for its customers, which is a guaranteed service for urgent and perishable shipments. Through its direct flight operating schedule, the company's on forwarding network stretches to over 100 destinations worldwide.

Virgin Atlantic Airways is providing air travelling services to the commuters in UK, USA, Caribbean region, Africa, Asia, and Australia. All the destinations in these regions have been valued by the Virgin Holidays offering that serves as a leisure marketing wing (VAA, 2011a). This subsidiary of Virgin Group provides an assortment of holiday packages to the mainland US, Florida, Canada, Caribbean, and South Africa.

Market Structure Influencing Pricing

Virgin Atlantic Airways has a strong brand image, which provides a competitive advantage in the marketplace. However, price discounting and intense competition can have an adverse impact on the company's operational results, liquidity, and financial ...