Richard Branson: why I shut down Virgin Atlantic in Australia
By David Flynn, February 11 2014
Sir Richard Branson says that Virgin Atlantic's Australian operations were costing the company some $10 million per year, but hopes his airline will one day return to Australian skies.
Until then, the brash British billionaire says his trips to Australia will leave him no choice but to fly on arch-competitors BA or Qantas with a bag over his head.
"I love going to Australia and the idea of having to go on Qantas or British Airways is going to be very, very painful" he said. "But hopefully we'll be back one day."
Also read: Leave Australia? "We're here to stay" says BA
“We have a great Virgin Australian airline when you get there, which has got 35 percent of the market, so we're just going to have a bag over our heads for that one leg from Hong Kong onwards [from London], sadly, in the future" Branson told Arabian Business during a weekend visit to Dubai.
“I suspect we carried on going too long [on the Sydney-Hong Kong route] and that's always a danger in business, you hope that next year will be better than the previous year" Branson admitted.
Read: Virgin Atlantic Flying Club: options for Australian frequent flyers
Independents good, alliances bad
Branson also took a swing at the formation of alliances between major carriers, including the Qantas-Emirates partnership, saying they stifle competition and could inevitably lead to increased prices.
Governments should have prevented hook-ups such as Qantas and Emirates, as well as British Airways and American Airlines.
Branson explained it was the eventual approval of BA-AA partnership in 2010 by "a weak regulator" which "forced" an alliance between Virgin Atlantic and US carrier Delta.
“That then caused us to go along to Delta and say 'we need a big brother now',” Branson said.
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David Flynn is the Editor-in-Chief of Executive Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.
Qantas - Qantas Frequent Flyer
08 Nov 2011
Total posts 121
Can't see why he wouldn't just fly Singapore anyways... The
Singapore Airlines - KrisFlyer
14 Jan 2014
Total posts 340
I was just going to say the same thing. Especially since Singapore used to own a sizeable chunk of VA.
09 May 2011
Total posts 294
If you read more carfully:
" we're just going to have a bag over our heads for that one leg from Hong Kong onwards [from London]"
Could have said Cathay maybe?
Qantas - Qantas Frequent Flyer
08 Nov 2011
Total posts 121
He can always fly Etihad/Virgin Australia. That'd at least be party Virgin. Or really keep it in the family and go VS LHR-DXB and VA AUH-SYD...
Free marketing for BA and QF
28 Oct 2011
Total posts 645
seems he's done a disservice to all the other airline options on the UK/OZ route he's 'in bed with'.... he'd tolerate BA/QF 'with a bag over his head' ... than fly any other airline..LOL...just goes to prove RICHARD BRANSON IS ALL ABOUT RICHARD BRANSON!!
Qantas - Qantas Frequent Flyer
18 Feb 2013
Total posts 25
Virgin Atlantic to LAX then VA to Sydney?
25 Sep 2013
Total posts 1242
Seems so obvious, right?
09 Sep 2012
Total posts 139
Sydneycentricity rules, eh?
Qantas - Qantas Frequent Flyer
17 Jan 2012
Total posts 172
I wonder if VS would have been more viable down to Sydney if they operated Twin Engine 777 aircraft instead of the Quad Engine A340 aircraft. Most airlines seem to be moving away from Quad Engine aircraft (except A380's) due to the economies of the aircraft.
Cathay Pacific - Asia Miles
25 Apr 2013
Total posts 542
It'll take quite a while for VS if they have to get a 777. Repainting, re-seat configuring, and even now VA barely has enough! How about the A330? That'll work...
25 Sep 2013
Total posts 1242
Qantas - Qantas Frequent Flyer
29 Jun 2013
Total posts 366
RICHARD is all about RICHARD ,and knows any publicity good or bad is good especially when its free
Qantas - Qantas Frequent Flyer - Chairmans Lounge
01 Sep 2011
Total posts 416
Touche!
Qantas - Qantas Frequent Flyer - Chairmans Lounge
01 Sep 2011
Total posts 416
Touche!
27 Feb 2013
Total posts 12
Perhaps they may have done better serviceing Melbourne (or even Brisbane or Perth) where BA did not compete.
I see today that Richard Branson is putting in his 2 cents worth regarding Qantas bid for government assistance, a bit rich coming from someone who could not make a go of the Australian market!
25 Sep 2013
Total posts 1242
Made the front page news in today's Sydney Morning Herald.
12 Nov 2013
Total posts 3
What about LHR-LAX on VS then LAX-SYD on VA?
Qantas - Qantas Frequent Flyer
13 Jul 2012
Total posts 43
If virgin had better international options, I would have flown them internationally more. I think they're great domestically and I've flow a lot with them
Qantas - Qantas Frequent Flyer
16 Feb 2013
Total posts 13
Just from a lowly tourist's point of view living in cold, wet Scotland, BA does offer a welcome stopover in Singapore which I too prefer and also has the only premium economy on that route to SYD that I could find. Looking forward to flying VA for the first time in a few weeks though!
Qantas - Qantas Frequent Flyer
02 Aug 2011
Total posts 41
Someone needs to remind Richard Branson that as a Virgin employee, he's eligible for staff travel on Cathay. Economy only, valid for HKG-SYD ;)
Virgin Australia - Velocity Rewards
15 Feb 2014
Total posts 1
He doesn't want to fly Singapore because he takes his own airline to Hong Kong. We used the Virgin Atlantic Sydney - London and found it a fantastic service. It will be sadly missed
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